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All Forum Posts by: Michael Bangsal

Michael Bangsal has started 14 posts and replied 48 times.

Post: VA loans on short sale

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

All inputs are appreciated.

Can you apply for a VA loan on short sale Homes?

Post: Does anyone have a proven Data sheet to evaluate a rental propert

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

I am lnterested in learning a formula someone uses to evaluate a rental property. I understand the importance of numbers in this business, so I am seeking help in this area. Any support is appreciated. 

Post: What would you do with $200k in cash?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17
Originally posted by @Jeremy Paschedag:

What about buying 4 houses at, or below, $40k, and spend $10k in each fixing them and renting.  Then in a year or so, you'll be able to buy another one.  Then keep repeating until you are where you want to be financially?

If you by a bunch with mortgages, you will not make much until they are paid off.

Just my $0.02.

 Jeremy,

What areas would you recommend with this strategy? im in CA, I don't think I can do that here..

Post: What would you do with $200k in cash?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17
Originally posted by @Leo Kanell:

I'm with Zack Karp, I would look at buying apartments in a very good area and have a property management company manage the apartments, make sure you keep cash on hand in case there are vacancies or unexpected expenses.

I have bought over $5M in property, I have had apartments and flipped single family homes, if you do decide to buy single family homes, do it under 200k a piece, in other words do not buy the big expensive property even if it is a great foreclosure deal, because if you can't sell it quickly, at a higher price it is nearly impossible to rent it out and cover your mortgage payment.

You could buy 7 or 8 100k homes and put 20k down on each and at that price point definitely look for some good deals i.e foreclosure, distressed home owner, whatever you do, take your time, regardless of what any realtor tells you, take your time and make smart decisions.

 I like that you're straight to the point. 

I'm in a similar boat, would you advise investing out of state for a first REI? I'm in CA and right now its seems only people with large capital can play this game.

Post: Whats the best to go about this ?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17
Originally posted by @Colleen F.:

One thing I did not hear anyone mention is vacancy, vacancy is per property so your loss of income is less with more properties. If you have 3 properties producing $200/month each and one is vacant you lose $200/month, one property producing $600/month and it is vacant you lose $600.

Also the per bedroom rate is usually set per an area so look on craigslist in the roommate section. Your brother probably needs to find out if what his friends would pay too. 

Great points!

My original strategy was never to sell, and rent it out to Military officers near that base. (This is specific to the clientele I want to rent to) And live off that passive income.

Heres the dilemma: I have the cash to make a substantial downpayment, and in return hope to make a hefty amount of passive income. Or should I leverage tools such as the VA loan (0% down) and acquire more than one property.

Would you rather manage 3 properties or 10 properties, both earning the same cash flow.

How would you go about it?

Post: Whats the best to go about this ?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

@Jeff B.

Great point about your lease agreement on your tenants! 100% agree.

I have some analyzing to do when it comes to my strategy.

Post: Whats the best to go about this ?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

@Elizabeth Colegrove

With 7 properties, do you manage all of them?

My thought process was making one deal great by dumping a big downpayment and generating cash-flow as I do not intend to sell, but rather live off of the cash flow income.

Im open to all strategies, can you go a little more in depth in your approach? What is the benefit of obtaining "more" property that produces little cash flow versus a couple properties that produce excellent cash flow?

Thank you for your replies 

Post: Whats the best to go about this ?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

@Elizabeth Colegrove

My brother and 2 of his roomates will be living there. All 3 are Marine Officers.

I am involved because I am putting up the money, I saw it as a good time to invest in real estate with good tenants and from the numbers I ran I am generating cash flow.

The reason I am still putting 50% down was to increase my cash flow. Correct me if this not the proper way of going about this .

Post: Whats the best to go about this ?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

@Kevin Fox 

@Elizabeth Colegrove

@Account Closed

He will be stationed in Camp Pendleton. 

We're looking at a property now listed @428K.

Using the VA loan and also a 50% downpayment ($214)

Is this a proper investment strategy? It comes to positive cash flow, but Can i be utilitzing that money else where

Post: Whats the best to go about this ?

Michael BangsalPosted
  • Self Employed - Cell phone repair
  • Milpitas, CA
  • Posts 52
  • Votes 17

Hey BP,

I'm ready to jump into my first real estate investment property with the following opportunity described below. Let me know whats the best way to go about it.

So my brother will be stationed in the Military in San Diego starting April. He will be there for a minimum of 2 years and up to two years. We came up with an idea to BUY a property (single family/Condo: 3 bdrm, 2 baths) and rent the two other bedrooms to his two classmates. We took the average rental for a 1 bdrm, 1 bath in Oceanside, CA. and came up with $800/per person. This gives us $2400 (including my brothers rent) to have as rental income.

Our Goal is to be positive cash flow. 

We're also thinking about using a VA loan to finance the home.

Our downpanyment can exceed 20% but it will all depend on how much cash flow we can generate.

Any advice/opionion is appreciated.