All Forum Posts by: Brandon Hughes

@Taylor Jennings

Did you say this was a app? What's the status?

@Shaun Anderson You can setup anything however you want. I work at a bank as a banker and I find it much easier to separate expenses between different accounts.

Secondly, most banks have accounts requirements for waiving fees and they are typically very easy to meet. Talk with your local business banker in the branch and explain how you want to separate expenses between accounts and they should provide you a solution that will fit your needs. If they can't it may be time to either switch or find someone more knowledgeable.

Let me know if you have any questions I could probably point you in the right direction.

@Matt Sauls

Hi there welcome to BP. I live in Yucaipa and work in Redlands. Cash flowing properties in the area are few and far between. In yucaipa/calimesa there are many multi-unit properties but few rarely go to sale. We should connect sometime.

I have been talking to a couple of people who do environmental studies for home builders. They sound like they are busy and building will continue in the area.

I'm looking for my next property now and have not found anything that is worth moving on in the area.

Thanks Brandon

David welcome!

I also live in Yucaipa. We definitely need to meet up sometime and network. There are not many networking events for people living in the Inland Empire that I have found.

Thanks,

Brandon

Im pretty sure you would not qualify for fha financing. You can call any bank mortgage department and they should know all fha guidelines for sure.

there are conventional lending products which can have pmi where you can put as little as 3% down, similar to an FHA loan. credit requirements are more strict.

the investment property would be 20-25% down tho.

I have, the state comes up with a grant for 3%, you come up with a half percent. first time buyers/fha loan only.

@J Scott I dont think it is worth 200 in the condition it is in either. All I can really do is make an offer at what I want to spend. I guess I'm taking a shot in the dark but in its condition they may accept 150.

@Bill Jacobsen Thanks for the info maybe ill submit an offer, ill have to pass if they dont want to accept it.

@J Scott I appreciate the input. Living in socal I find many BP rules don't apply to REI. Everything seems to be much more expensive for REI.

I'm troubled further because in my area (so cal) 150k can barely buy you a 2 bed 2 bath at 1000sf. Which would be only be equivalent to the smaller unit. Average sf price in my area is about 140$+ sf.

I even contemplated splitting the property into two. I could probably get 150k each for the two. I even went to the planning and zoning department to explore this possibility and they were ok with it. Property meets criteria to do so (lot size/road frontage/etc) If this were the case each would sell for 150k.

There is so many possibilities with this property I don't know how to approach it.

I would love to keep it as a buy and hold and have the cashflow but I dont know how to value it. If I had a better value I would be more comfortable putting an offer in to keep it.

Can anyone from socal who has experience provide me with a way to value this property?

I'm having trouble valuing a multi unit property for sale in my area. It is a homepath property and cashflows better than anything else in the area. I plan on occupying one unit for a year then moving out to purchase another property. Once I move out I want to keep it for passive income. I plan on managing it myself, I already manage one other unit now so I'm familiar with managing tenants.

The property has two units, one is about 1000 sf 2 bed 2 bath with a huge garage. The unit needs somewhere between 30-35k in work. I have an equity line/401k to fund the repairs. Rehab will cost about 200/mo to repay in interest. It will take at least a month to get ready to rent ready. I can probably rent this for 1000$ mo conservatively depending on how nice it is finshed/ layout once completed. (not a good layout now)

The second unit is a newer mfg home 5 bed 2 bath about 1500sf. This one needs minimal work; paint, flooring, ac condensor and minor repairs. This one can be ready in a matter of days and has a great layout. It can command around $1500/ mo rent.

It is a FNMA REO and they are asking 200k. It has been on the market for a couple months, longer than it should in this area.

I think there is a deal here but I don't know how I can put it together. If I have a valuation on the property I can prepare myself to put it together.

There are no multi unit comps over the last year to use as a valuation. This is where I am having trouble.

Any help would be greatly appreciated.

Brandon