All Forum Posts by: Nick Karni

@Brice McGee One more thing to consider is qualifying for financing. Not sure what your current DTI is but you may benefit from having your current rental income count as income and less so as debt. In my area, lenders want to see a tax return, minimum of 1 year of rental income history before counting that as additional income. These are conventional lenders mind you. If you go with unconventional financing you may not need to wait. Hope this helps.

Hi @Cristina Rodriguez, no matter how good the terms of the deal are, you should never accept being kept in the dark. It's a big red flag that you had to ask for comps and pictures.

I know they are giving you a nice chunk at 66% but this your credit and cash on the line. Being asked to sign an RPA without comps and pictures is a huge red flag no matter how good the split. While transactions can be fast-paced especially in SoCal, your requests are reasonable (and shouldn't have to have been asked for!).

On the flip side, RPA's do have outs such as inspection contingencies. You don't need to know 100% of the property details to sign as long as you have contingencies. Make sure you're aware of contingencies, you ask for them, you know how to use them, and you do proper due diligence during the contingency periods. 

@Bonnie Low What a story - and a sign that the universe is looking out for you . Do you mean that the airbnb you stayed in was the exact property you were under contract for? 

I know we all are struggling with these rates. Depending on your situation or timeline one option some investors are considering to stay in the game is to buy deals that breakeven or cash flow minimally (after expenses). This way when rates do eventually come down some day, these same properties will cash flow nicely. Not everyone's cup of tea, understandably. But an alternative to the waiting game. 

@Murray Twyman Which Brandon Turner book are you reading? I know some of the books he wrote, like the BOMRP were written 7+ years ago. 99% of that book is great advice. However you have to consider the timing of when it was written as well. Brandon and Heather likely wrote that book coming off of the post-great recession period in the housing market. During that time housing prices were low, interest rates historically low, and 2% rule was probably possible in a lot of markets.

Today, the market has completely flipped from those days. Home prices are at historical highs and interest rates are the highest they've been in a couple decades. A property that meets the 1% rule today is considered a great deal. Hope this helps.

Great advice @Bonnie Low. How long have you been invested in Dayton/Kettering? 

Amen to that! I was under contract for a duplex in SA in March 2020 - sellers backed out because the world shut down 2 weeks later. Still having FOMO. How's Boise these days? Are the rumors true that prices are declining?

Nice articles. I don't know why San Antonio doesn't get much attention. But it's absolutely a great market though not as sexy as the other Texas hotspots.

Quote from @Scott Mac:

I doubt anyone would move to Dallas or San Antonio and drive to work in Austin.

Without a job change (or a long term work at home job), the premise of this article seems far fetched.

That would mean 4 to 6 hour commutes each way.

Just my 2 cents.

Would businesses start to consider setting up in San Antonio as a cheaper alternative to Austin?

You're right that few people would make that 70 mile per way commute to work in Austin. Here in Los Angeles, people are crazy. They live out in the Inland Empire and commute 2.5 hours each way (5 hours total) for jobs in Los Angeles/LA County. I hope and pray that people don't start to do that in Austin. It's not good for folk's health nor their families. It's also added that many more cars on the road.

PS, is San Antonio a 4 hour commute one-way at 70 miles away?


Is San Antonio a 4 hour commute one-way at 70 miles away? I think you're right that less people would make that commute - but

That's great vacancy especially considering the higher cash flow. I'm primarily interested in multi-family LTR so Dayton presents better entry points at the moment. Definitely interested in STR/MTR. Need to learn more as I've been primarily LTR thus far. Will keep Cincy in mind!

@Sam McCormack what do your vacancy rates look like look for MTR/STR in Cincinnati? Do you do any LTR there?