All Forum Posts by: Par Attaran

I'd be careful of Elk Grove, AFAIK there is new construction happening in the next several months. IMO this will flatten out Elk Grove pricing over the next several years(even more so when the down turn hits)

Plus good luck cash flowing in Elk Grove, unless you have a huge down payment or find a 50% off deal with no rehab needed.

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Sacramento, California

I will throw one out there for USREEB. Responsive customer service, and good returns.

We own 2 properties with them and no complaints so far :)

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I am finding it impossible to find anything on MLS that will cash flow with 20%-30% down.

lets looks at a random MLS listing today-

$250k-

(this is in a C/D neighborhood, and probably a 90k house in 2010/11)

7521 Lemarsh Way, Sacramento, 95822

now lets plug in some numbers (using Rentometer's average rent of $1300)

Ive ran numbers like this for tons of different properties in Sac for about 8 months now, and nothing exists in Sac for "buy & hold" off MLS.

I guess its back to FL for me..

1 Vote

Sacramento, California

Originally posted by @Andrew Postell:

@Par Attaran the real question is what are you going to do with the property you will be buying? If you are flipping the property then the HELOC is the way to go because you will pay that HELOC back and use it again. If you are trying to buy and hold that property then it would be better to use the cash out option since the payment will never change and you can forecast your cash flow. Hope this helps but ask away if you have more questions. Thanks!

Will be using it for buy & hold only :)

I also don't plan on having the mortgage for more than a couple years, will most likely pay it off with in 2-3 years..

My thought is: with the HELOC I could pay it off, pull money, buy a property, pay if off, rinse and repeat with out any closing costs?

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I have a paid off property I want to use as leverage to buy another. What do feel is the better leverage option?

Cash out Refi- Locked rate, lower payments, higher fees & closing costs, can only draw cash once.

vs-

HELOC-Adjustable rate after the first year, higher payments, no fees or closing costs, can use it over and over again for 20 years.

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Seasoned investors, curious what your longest vacancy ever was? 1 month, 6 months?

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Originally posted by @Ralph R.:

Scott Pyrcz John Anderson yes be sure to change the name on your insurance policy to the LLC. Otherwise the property isn't covered. That's also where the lender will find out you changed the deed. The insurance has to notify the lender of any changes. That's when you will find out if they are going to accelerate the loan. It's a poor bet unless you can pay the note off or they allow you to change it back or maybe do a re-fi?? Is it worth the risk or is it better to just buy an umbrella policy? The LLC provides positively NO tax advantage. All an LLC does is provide legal maneuvering to protect assets. Totally not worth it for 1 or 2 properties. Really wats your liability risk as a land lord? Maybe a slip and fall or something like that. That's where your property liability and umbrella come in to play. They can only sue for your equity anyhow. They cannot sue for the banks equity. Most you can loose is your down pmnt and loan pay down. Is it worth the risk of the bank calling a note due?? RR

Is this true? I was always under the impression a tenant could sue you and your family for "Everything your worth" if they slipped and broke a leg because of Landlord negligence ?

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Doesn't surpise me, I just closed on a Wells HELOC and it took 60 days and a TON of ridiculous stips(and we have low DTI, good credit and free and clear properties)

My loan officer who usually does our mortgages explained Wells does not do HELOC's in house so that explains the slow underwriting process.

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Don't feel discouraged, I went through 9-10 low ball offers before someone finally said yes. My RE agent hated me, but after enough someone said "YES" :)

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Vivek,

Not sure which is more disappointing,

Your inability to understand satire (I have been AGREEING WITH YOU the entire time!!!)

or your ability to make a statement off a post with Zero context. You clearly enjoy arguing and trolling other people more than helping, so I will block you from now on.

Good luck with your investments :)

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All Forum Posts by: Par Attaran

Par Attaran has started 19 posts and replied 78 times.

Post: Elk Grove or Sacramento?

Post: New OOS Investor looking for a Trustworthy Turnkey Company

Post: Buy and Hold Cash Flow in Sacramento

Post: Better leverage option -Cash out Refi vs HELOC ?

Post: Better leverage option -Cash out Refi vs HELOC ?

Post: Your longest Vacancy ?

Post: Transfer home into LLC

Post: Wells Fargo is such a disaster

Post: 2nd offer in a row fell through

Post: Morris Invest Case Study 2.0