All Forum Posts by: Nicholas Doyon

@Artem Pustovar I am getting married in Dunedin next month and it is a destination wedding for many of our guests coming from NY state and Canada mainly. Many of our guests looked for houses for short-term rental with the capacity to sleep 12-16 guests or so and there really wasn’t many options in the Dunedin/Clearwater area so I can see an opportunity for these types of houses for short-term rentals.

You can count on me! I will be there. Very excited for this

Hi all,

I currently live in San Luis Obispo, California which is a pretty expensive market. I moved here from Canada two years ago and left most of my cash invested in the market back in Canada since the CAD-USD conversion didn't make sense at the time since I will most likely end up back in Canada eventually. I started building up capital in the USA two years ago to potentially be able to buy a house hack or a live-in flip in the area. Although, with the median house price in SLO being around $730k, I'm realizing that, even with a savings rate of 45%, it is going to take a while before I can accumulate the capital for the down payment + renovations (if needed). I am looking at properties every day and am pretty familiar with the market. I recently started seeing some opportunities that could potentially make sense for live-in flips (may need more analyzing), but I always get stuck because of pricing. For example, latest deal is listed at $875,000. Comps in the area for similar houses sell for between 1.1M-1.5M depending on how remodeled they are. I feel like this could be a good opportunity, but I have not pursued anything further because I get stuck at the idea that I may need to put down 30k-35k down payment (3.5% FHA) (which I probably could), but then the renos would certainly be an additional 100k-150k.

My question is: what options should I look at to help me close on a deal like this when I have limited capital at the moment? Partnerships, hard money lenders, other?

I am tired of paying $2,500 in rent every month... (I'm currently saving $2,400/month)

Excited to hear ideas and/or connect with other investors in the area!

Thank you

I have been looking into REI for years and recently have started looking for opportunities to pull trigger on my first deal. I have been networking about it and it finally paid off. My roommate from college messaged me tonight about getting in on a deal with him and his business partner who own around 40 properties together.

Here’s the deal:

-Side by side semi dettached on same land sold together

-Anticipated closing price: 270k each side (540k for both)

-budget for repairs 15k

-Property in an up and coming area

-estimated appraisal after renovations 350k/side

-anticipated cashflow: 12,500 annually

-A hard money lender is putting the downpayment (20%) + 15k for repairs for 50% equity

-my roomate and his partner would take 30% and take care of property management and renovation work through their contractors

-they need someone to finance the remaining of the loan (432k). This is where I would come in and put the mortgage under my name for 20% equity. No money needed on my part.

-mortgage payment expected to be around 2k/mth. We’ll be getting 4,7k in rent/mth. My college roommate and his partner would send me the amount of the mortgage every month for me to pay it. At the end of the year, we split profits based on equity.

-If our conservative calculations are right, at 20% equity, just by carrying the mortgage, I’d be cashflowing about 2.5k/yr on top of building equity on a property that is expected to appraise 80k after renovations + 3% market appreciation.

I see this as a great opportunity to get my feet wet in REI, start building a network and learn a lot from more experienced investors while making some money.

What do you guys think? Is this a good idea for a first REI deal?

@James Peirce

Hi James,

Welcome to BP! I’m in a similar boat than you. I’m 25 years old and just moved from Canada to San Luis Obispo, CA. I’m looking to get started in real estate investment sooner than later.

You mentioned going to local REI meetups. I'd be interested in attending a few of these in SLO. If you want to message me and let me lnow where/when those are taking place maybe I can see you there!

Other than getting educated about REI right now, I have no experience, but I'm always interested to grav some food or drinks and discuss REI.

Let me know! Good luck!

Hi,

I just moved from Quebec City, Canada to San Luis Obispo, California this past July for work purposes under an L1A Visa. I decided to rent an all furnished house for the first year as I was not exactly sure if my move was going to be long-term or not. Everything looks like I will be here for a few years at least. With the price of rents around here, I see a good opportunity for me to house hack and reduce my cost of living by a lot. I am currently paying $2,700/mth (utilities incl.) for an 850 sq foot 2 bedroom house all furnished. I want to be able to put that $2,700/mth towards my own equity and not someone else's. I know the market in SLO is quite high right now. Even if I don't live for free 100%, if I can bring down my housing cost to $200-$300/mth, that is still close to $2,500/mth I can invest or put aside for another deal later on.

I would like to know if anyone has or is house hacking in the San Luis Obispo area and hear what kind of deal it was. (Multiy-family, single-family with rent per room, etc)

If anyone in the area is interested in discussing SLO investment opportunities with me, feel free to message me!

Thank you