All Forum Posts by: Moaaz Malik

I live in the Bay Area and thought that I would invest out of state because California is so expensive. But now I’m running into the issue where it just seems very difficult going through with my first property and it being OOS.

Ideally I would want to be close to the first property I invest in because I think that would make for a better first experience and I think it’s safer but the properties in the Bay Area are just too expensive.

Just as some more background I have ~90K to invest.

Does anyone have any advise on what I should do? Should I just continue to look in the Bay Area and hope I find a deal or should I just go to OOS investing.

5 Votes

Hi All,

I’m feeling hesitant about a deal that I’m under contract for. It’s been a little murky from the start and it’s been extremely difficult to work with the seller. Is it too late to back out. As some background I got a 5 day inspection period and I lost 2 days because the seller was difficult to work with. Day 3 on Saturday I got the inspection done.

Monday 9/13 was the last day of the inspection period so yesterday 9/14 is when I was supposed to pay the earnest deposit. My agent and I have been contacting the title company since yesterday to pay the earnest deposit and have gotten any response. I haven’t paid the deposit of $2K yet Is it too late to back out? Am I just having fear of doing my first deal or is this actual cause for concern?

There are also a couple of things in the inspection report that I’m rethinking and wondering if they might cause problems later down the line.

This is also a cash offer that I’m doing so I don’t have a bank involved on my side

Would love anyone’s insight and help.

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Originally posted by @Theresa Harris:

Talk to your inspector and go through the report with them. They should have gone through it with you just after they did the inspection and walk through the property with you.

A lot of the inspectors use standard forms which makes for a lengthy report most of it with filler. There should be a summary. Are there structural problems, problems with the roof, major problems with plumbing or electrical, signs of water damage, etc.

Hey I'm an OOS investor and talked with the inspector and looked at the report. There were definitely a lot of comments on the report but the main one that the inspector pointed out was replacing the gutters and route the downspouts away from the house, adding gutters to the garage and putting a back flow valve on sump pump.

I've never worked with any of the before so I don't know the cost and seriousness and how soon these should be resolved.

0 Votes

Hi All,

I'm looking to purchase my first investment property and I just had a home inspector go through the house and create a report. I don't know anything about a home inspection and a lot of the stuff just flew over my head. It's a little hard for me to differentiate between how serious something is and what requires immediate work and how much it would cost me.

This is definitely going to be a common thing for me as and I expect to learn more with experience, but what would you do in my current situation?

I would love any recommendations that can help me learn more about any of this stuff in general. Any books, articles, podcasts, etc. would be greatly appreciated.

Thanks!

0 Votes

Hi All,

I had a quick question when it comes to paying for home inspections. When you guys are making offers on multiple properties are you paying out of pocket for a home inspection for each home? Let's say you keep getting a bad report and the amount you're paying continues to add up, is there a more efficient way to do this?

With inspections costing $400-600, my main concern is that the inspection on the current home goes bad and the same thing happens on the next house. What if this happens 3-4 times? I'll be out of $1600-2000.

Also, how often do these inspections go bad? The house from the pictures seems to be in pretty good shape.

0 Votes

Hi @Joshua Hively @Robert Ellis @Austin Steed @Daniel Judge @Jonathan Roach - I'm also in the same boat. Would you please share the list with me as well? It'd be much appreciated.

0 Votes

How do you all research an area before you invest in it? Especially if it’s out of state. I’m currently looking in one area for my first property and haven’t had any success? What should I be looking for to see which city has good opportunities?

0 Votes

Hi All,

I'm looking into my first rental property OOS. I ran the numbers using the bigger pockets calculator and all seems to work out. What are things that I should be considering before completing the purchase and what should I look into during the DD phase?

Also, the property already has tenants in place. Any advice would be appreciated. Thanks!

0 Votes

Originally posted by @Joy James:

@Moaaz Malik

Have you researched STR ‘s? We were going to buy another LTR as 1031 exchange but the market in my area is just too crazy. So we ventured to Myrtle beach and found a beachfront condo. We have yet to get it listed under a new PM. But we feel very optimistic about it!

Hey Joy - I have not looked into STR. I was trying to stick to Single Family Homes or Multiunits. Not for any specific reason, but just to try to gain experience as i start off. Fo STR do you typically just list on AirBNB?

0 Votes

Originally posted by @Tracy Mandell:

Congrats on taking your first steps and avoiding analysis paralysis! It sounds like you are already putting a plan in motion in Ohio, but I just wanted to add some information I learned (just food for thought moving forward).

I recently read a well researched market projection report. Things to consider when choosing your next locations are millennials and COVID. Millennials currently have the highest amount of student loan debt in history and are not in the position to buy a home anytime in the near future-they will be renting. But millennials are attracted to their amenities so wherever you buy consider the neighborhood. They want quality school districts, peers as neighbors and close proximity to shopping, workout facilities and entertainment.

Also to consider are the affects COVID has had on renting. The trend it has created is movement away from densely populated areas and small spaces in close proximity. Renters are moving to less populated open spaces. U-haul reported a massive hike in rentals from San Francisco to Phoenix AZ over the last 6 months making it one of the top 10 future markets for multi-units.

California is not to be ignored though, the Inland Empire is projected to boom. People still must work in Los Angeles even if they don’t want to live there, so Riverside and the surrounding areas are where they are going and the prices are more reasonable for California pricing. You must also take into consideration what is happening to all of the rentals left vacant in San Francisco and San Jose-it’s created some very motivated sellers. So there are still deals to be found in Cali and areas like the Inland Empire area making the top 10 list.

My point being; take all things into consideration in addition to the numbers before you decide on that first property. Finding my best deal includes finding the worst property in the best neighborhood where housing market predictions are high and the numbers work. Then doing the minimal rehab to attract the best tenants for the highest competitive rental income.

What parameters does your best deal have?

Wow Tracy, thanks for such an insightful post! These are all great things to take into consideration. I definitely don't want to get stuck in analysis paralysis and want to do my first deal. You're right, i think with the though of my head to not get into analysis paralysis that can naturally cause me to rush into something and I definitely want to avoid that. I'm currently look for a ~10% COC return using the bigger pockets calculator. If you don't mind me asking would you be able to forward me the link of that article? It's seems interesting and I want to learn as much as possible.

1 Vote

All Forum Posts by: Moaaz Malik

Moaaz Malik has started 9 posts and replied 38 times.

Post: First Time Buyer Living in an Expensive Market

Post: Backing out of a deal

Post: Home Inspections for a first time Investor

Post: Home Inspections for a first time Investor

Post: Multiple Home Inspections when looking for a property

Post: Home Inspector Columbus, Oh

Post: How to Research an Area to invest in?

Post: Things to Consider When Buying a rental property OOS

Post: 100K in cash to start investing

Post: 100K in cash to start investing