All Forum Posts by: Matt K.

I don't remember the finer details, but look at a 203k loan 

https://www.hud.gov/program_offices/housing/sfh/203k/203k--df

I always keep an eye open for deals, but I also make sure I'm dialed in on my side first to eliminate noise.

Since you are just starting a job, loans likely going to be the biggest limiting factor. As you already know bay area is expensive, there's other ways to reduce your living cost with out buying.

See what a lender would even loan you at this point, then see what options are there with in your budget. Then compare that to maybe something out of state to offset your living expense.

WF is notorious for dragging their feet and messing up loans....

You have so much profit in this hard money might make more sense simply based on the speed you can do it in. 

Most the time, loans are based on intent...so if you intend to make this your primary you're good. If you intend to do a flip and it can be proven, then things could get ugly.

I would go with someone who has a better track record of being able to fund loans. 50k doesn't seem too bad rehab wise where you'd run into inspection issues but again there's loan products for that.

I have a refferal if you want one, haven't used them (because I haven't come across the opportunity) but might be worth the discussion. I also have two mortgage brokers that could offer some input as well.

Quote from @Aditya Kohli:

@Matt K. The purpose of old primary is :

- will catch up on cash flow in 1-2 years

- principal down is greater than negative cash flow , so more equity

- would like to keep the house for longer term as it is close proximity to big tech companies

Me and my wife are still in growing stages of our career so cash flow is not the first goal

You need to factor in the tax advantage of selling now though...it could make sense to sell now and pick a replacement up on the dip that's has a strong possibility of happening.

Replacment financing would likely be higher but potentially not that much higher and this has the possibility of going down to where you could refi to get back or close to where you are at now.

Not saying this the only way, but there's likely a strong argument that could be built out in support of it.

Im in the east bay so I get bay area prices and the appreciation play, but there is also a LOT of fomo going on right now both with selling and buying oddly enough. Good houses still get sold quick, not so good looking ones with the right seller can see step discount and simple updates could make for a good upward move. Lot of tech is in panic mode because of layoffs and potential new layoffs...

Happy to help show with numbers if you want just message me.

What purpose does keeping your old primary server? You're already losing money on it, adding a HELOC going to crush the cash flow. 220k with like 7% interest going to be like 1500 bucks, you're going to run like negative 2k mo on that house.

IMO sell it, position yourself with less debt on new primary. 

Nice work! I've got a similar story, but more out of state focused. 

You have so many options ranging from easy to complex. I love this stuff and would be happy to share some ideas and pass on what I've learned.

Feel to reach out if you're interested.

Quote from @Sherrie Dufault:

We are interested in buy and hold and possibly BRRRRs

 If that's the case, I'd work this problem backwards.

Find a stellar agent, in the market you're looking for. If you don't have a market, obviously find a few first.

Once you find that rockstar agent, have them help you find the equivalent mortgage officer. Both these professions work with each other frequently and know who performs well. 

Once you have these two, get recommendations on title companies...again same thing people that perform well know others that operate at their level.

Now you have 3 resources if not more, use those to find the CPA and attorney. Again, all these people will know someone high quality and who can get stuff done.

Notice I left out property management? That's on purpose, many times they'll want you to use an in house service. While this is easier, I don't agree that the level of service is better.

Finding a property management company on your own would likely produce better results. They're easy to find, but interview them and sprinkle in questions you know the answer to. If there answer comes back significantly different it's one of two reasons: your wrong or they're wrong. If they can back it up and explain the difference then take that and readjust your opinion, but if you're confident they're wrong look for someone who's a better fit.

With all this said, there's so many markets it can be overwhelming. I found it easiest to identify areas based on my budget and goals. The more specific I was, the more clear the available options were and it helped cut through a TON of noise.

If you want help, feel free to message me. I can share with how I ended up in KC and passed on the East Bay. 

Are you trying to do something complex like syndications or DSTs or hard money loans?

Or you trying to do something more common like buy and hold or flips?

You need a good agent and lender first, these will be key to finding a good property.

Then you need property management or if your doing it yourself you need people in the trades. The agent can likely help guide with this.

^^^these are highly dependent on area, so zero in on that first.

The attorney while important might not play as big of a role as your thinking. Again depending on what you're doing their action is likely at most drafting contracts and or evictions. Location important here to but maybe not as much as one would think.

CPA is probably least important and least dependent on location. Even the best CPA who has some extremely valuable insight won't help if you have no way to carry it out locally.

Quote from @Cliff Benner:

@Steven Foster Wilson odd question maybe, but do you just send out a text message to your friends and family with a copy and pasted text message?

I don't live close to my family and was wondering how people communicate with them or ask if they know investors.

 Call them, don't deliver this over a text

Present the idea, the problem you are facing, your plan to overcome said problem...and ask if they have an ideas that could help you work through said problem.

If you want to be taken seriously you better have your stuff locked down and speak confidently about it to the point where you're seen as the expert.