All Forum Posts by: Mark Brown

Honestly, there are many variables. Since PITI = Principle, Interest, Taxes, and Insurance you could look for anything that lessens any of those variables. For instance, I think any place that's flood or hurricane prone (coastal places, Florida, etc.) will have sky high insurance so I'd avoid. Places with sky-high inflated prices -Altanta,LA,etc. - are other places to avoid IMO because your principle and interest will be high and you might not be able to cashflow.

If I were you I'd look for multifamily homes in places with lesser populations in midwest, etc. The lower the home price the smaller your mortgage payment thus the higher your cashflow. Of course, average rents for a property similar to use matters as well.

Hey Rachael!

If I were you I would get a list of the top 5 largest hospitals near you (ask google or LLM). Then I would take those zipcodes and look for properties near there. If you can get fixer-upper in an otherwise safe (looking) Class A/B neighborhood, you could put in some sweat equity then rent that out. The downpayment should be less since it should cost less and you can use what you save to rennovate the airbnb.

The admin and underwriting fee's seem a little steep. Did they give you any explanation or vindication for each of those? I'd definitely get a second one if possible or better yet, email that to another lender and ask them if those fees meet what they'd charge. That's an apt opportunity to try and get a price match (or less).

Long story short I purchased a home in an overinflated environment for $500k. I got the 5% downpayment from a HELOC.

The mortgage and hold cost is a lot for me (over $4k). 

I struggled with getting property manager since I'm remote and low-renting tenants. It's a multifamily.

Even with perfect rents I'd be at a cashflow deficit of about $1500 a month. I didn't get my disclosure on final monthly PITI until 1 week before closing so I was well pass due diligence.

I decided to list the house. Now that I'm showing it people are complaining about it's condition. Which is better in my situation - doing repairs myself (possibly $50k) and increase the likelihood of selling (not incurring holding cost of interest on HELOC and PITI on 30 yr/mortgage). Or do I reduce the listing price by $50k? Either way I've loss close to $50k already in holding cost, fees, and withdrawal from HELOC for downpayment.

The problem is I could list for $50k lower and still not get offers in its current condition. I have 0% equity since I just got the home.

 Circling back, thanks for this Andrew this is INSANELY high value add. Internalizing and reproducing this info can easily make one an expert. Thanks again for this.

 Thanks for this! I am thinking about taking my home in Dekalb and making it a MTR. Seems to be a lot of hassle tbh. Not to mention I'd have to pay for utilities, etc.

 Thanks David - you're extremely helping out! I have a duplex in Atlanta but live in Dekalb. So this is extremely helpful.

There are so many avenues for you to go - REITs, multifamily, commercial, syndicates, etc. To me a better question is what are your mid term goals and what are your current limitations? If you need super passive maybe money partnerships, REITs, syndications are the way to go. If youre looking for something active commercial real estate might be best for your situation.

As a former employee at Intel, former resident of Hillsboro I agree this positions investors uniquely to benefit from this. Namely with the increases in land value and housing. My only question would be does this indicate that new housing will be built (i.e. more supply = less demand & appreciation) or more buyers inundating those class A markets (i.e. capped supply = more demand & appreciation). Or would it just even out and have negligible effect (i.e. more supply & equally more demand = nominal gains in appreciate or appreciation stasis).

I'm just an investment buyer in ATL. But I'm trying to get into getting leads from wholesalers so please add me to your considerations. I'm trying to better understand the logistics of wholesaling as a means of getting leads.