All Forum Posts by: Palmira Angelova

Hey everyone!

Curious to see how people have overcome the debt ratio hurdle. I'm a relatively new investor focusing on buy & hold, and very passionate about real estate. I'm about to close on my 4th property and with that, will max out both the money my family (who live outside the US) and I have pooled together and my own debt ratio. 

I'm planning a couple of years ahead and wonder what options are out there in terms of getting my next mortgage, given that my debt ratio is maxed out. The most obvious is to increase my own salary (which is unlikely short term, since I'm already a high earner for my level of experience) or apply for a mortgage with a co-investor.

What else have people done? Are there any options with an LLC, or have others gotten around this by using a local bank?

Would love to hear your ideas, and thanks BP community!

@John Kesner

Hi John,

Thanks for chipping in! 

I'm still in the earlier stages of scoping our Reno, so haven't honed in on a property type yet -- I want to decide this based on my goals, which are cash flow and appreciation value, but the emphasis is rather on cash flow. For example, in my home market in Oakland, CA, 1bdr / 1ba properties cash flow best within my price range. 2bdr 2ba by contrast seem great, but tend to be 50% more expensive but with only 25% greater rent potential. Thus, in Oakland I've targeted 1bdrs. 

So at the moment I'm looking to get general information and go from there. In your experience what would 1bdr and 2bdrs in a desirable location in the city rent out for vs the city perimeter? What is the most sought-after by renters, 1/2/3 bdrs? Do people tend to share housing with room mates to save money or rather live alone / as a couple? 

I'm looking to invest in something that's <50 years old, so we can rule out older homes. Price range would be <400k, ideally 150-300k. 

Generally, I'm not opposed to HOAs, if I can find one with reasonable HOA fees and a good track record (which can be difficult, admittedly). I'm curious why you point this out as something to watch out for in Reno - do you find that the HOAs are not well managed or generally over-priced?

Really appreciate you taking the time to share your insights - thank you!

@Bill Schrimpf

Hi Bill, thanks for your message! That's good to know. Even rentometer though, seems to have patchy estimates for >2bdrs, and I'll definitely keep in mind that it's hyper-local. From my preliminary research it looks like that's true for the property prices as well. 

I'd be happy to have a chat with your PM team, please feel free to intro me. I'll send you a personal message with my email address. 

Is anyone familiar with the rental market in Reno, NV? This is a location in which I'm considering investing remotely. Do you have any idea what rents are like for 1, 2 or 3 bedrooms ? The online resources I've looked at don't seem to be too accurate for the area, unfortunately (e.g. 3 bedroom shows cheaper rent than 2 bdr etc.). 

Is there a big discrepancy in desirability / rental price in different areas of the town? 

Appreciate your input and thanks! Also, if there's an agent or property management company in the area that you'd recommend, I'm all ears. 

Cheers,

Palmira

Hi everyone,

What a wonderful community! Really excited to be a member and meet other investors =)

I'd love your take on how a calculation gets from CFBT to CFAT. I've found it difficult to find a good explanation of how CFAT should be calculated, and at which point taxes come into play - assuming property is under the individual's name. 

Recently I even read an example somewhere saying that if your CFBT is $300, then you just take taxes out of that $300 - let's say $100 in taxes - and your CFAT is $200! Simple right..? But...that really doesn't seem right to me as it doesn't take into account the fact that some part of your gross rental income (after you write off deductions) is still considered personal income to the individual and should therefore be taxed. 

Could any investors chip in here with their experience? How do you set up your CFAT calculations?

Thanks so much. Really appreciate your input!

Hi @Justin Windham and @James Wise!

Thanks for your kind replies. I recently became a Partner Account Manager as part of the reseller program. Before that I was on Marketing Analytics. It's a great company with wonderful people! I've really enjoyed working here for the past year.

How long have you been part of this community? What do you think are the best ways to start learning and are there any books you'd recommend to expand my knowledge? I'm particularly interested in medium to long-term investments in residential properties, but open to learning about other (good) options as well. (Aren't we all..)

Hi everyone,

I've always been interested in real estate but due to distracted-young-people reasons never realized it was a thing I could realistically pursue until now.

Currently I work at Dropbox - before that I was an economics and psychology major at Brown University. I'm 24 and have had the good fortune to save up some money in my first years of work in San Francisco.

I'd like to really dive in and learn, and within the next 1-2 years take advantage of the low interest rates still available and invest what I've saved up in one or multiple properties (residential or commercial). If you are open to having a conversation with me or sharing your advice / wisdom, please reach out, I'd love to learn from you!

Thank you!