All Forum Posts by: Patrick Thomas Dickinson

Hey BP folks; 

Here's my situation. Me and Girlfriend are preapproved for 1,000,000 in loan together, I have 125,000$ to 140,000$ liquid cash to be used as down payment on whatever property we chose to purchase. Just looking for some fresh ideas and what you moves you make or  purchases you would make if you had similar finances. ( and to make this more clear, this is a long term play ( 20-30 year buy and hold): 

Ideas must be centered to sacramento/ bay area region: 

What cities to you feel are still the most undervalued in the bay area/ sac region:? vallejo, tracy, lodi, pittsburg, fairfield, vacaville , arden, carmicheal, citrus heights give me some more?

Options we have been playing around with:

1. Just buy a single family home in a well established area, put 20% down and rent it out from day one ( seems like a safe move but it probably wont cash flow for the first handful of years. ( appreciation play) 

2. FInd something with a sfh with maybe an adu on the property and rent out both or get creative. I know the recent passage of senate bill 9 we have more options as far as putting more propertys on lots once deemed for sfh only. 

3. Buy a property that is already multifamily and rent it out long term, we want to stay out high crime areas and that limits are choices to a few cities at least at our price point. IE sacramento, lodi im sure there's more but the options are few. 

I am really just looking for some fresh ideas that I might not have thought of. Thanks for any feed back everybody. Please try and justify why you would choose a particular option thanks. 

thanks @Bill B. I passed this on to her and she agreed that your suggestion was fare. 

HI bigger pockets folks,

I have a quick question. Me and my girlfriend are purchasing a sfh or multifamily property in the near future. I will be putting down the downpayment of 20 to 25% because it an investment property and we will be splitting the loan amount 50/50. So it would look something like this. 

Purchase price 700000$ 

downpayment 140000$ - my responsiblity 

closing costs 15000$ my responsibility 

275,000K loan her responsiblilty 

275,000k Loan my responsibility 

I am trying to figure what a contract might look like for me and her as far as terms, does anyone have any experience in a similar situation, how the equity would be split upon sale or any other feedback. I believe the title would read tenants in common just trying to determine what percentages we might use 60/40, 70/30 etc 

@Jeffrey Evans

What development did you buy in. ?

@Bryan Noth

Rents should be about 1700 to 1900 per month. 

With 25 percent down and self managing the property myself number look like this 

Rent 1750

vacancy 87$ or 5 % 

insurance 718 $ sfarm 

Ptax 4500$ 

maintenance 2 % its a 2019 built home hopefully not to many issues 

cap ex 2%

Hoa fees 38$ per month 

loan payment $1025 ( prinicipal and interest) 

Cash Flow should about 100$ from day 1. I figure with rent increases year on year cash flow will increase substantially and this is more of an appreciation play as well 

Investment Info:

Single-family residence buy & hold investment in New Braunfels.

Purchase price: $295,000
Cash invested: $80,000
Sale price: $295,000

This is my latest acquisition

What made you interested in investing in this type of deal?

growing market, halfway between san antonio and austin tx

How did you find this deal and how did you negotiate it?

realtor/ mls

How did you finance this deal?

conventional financing with 25% down payment

My situation I have 260,000 Cash

I am now in contract on a house for which I will have about 70,000 Invested into the deal leave me with 190,000 left over 

I would like to have 50000k in reserves, Which puts me at 140,000 left over for further real estate deals. 

Me and my girlfriend are planning on buying a house around the 600,000 purchase price here in California and debating whether I should put 5% down and live in the property or put 20%  a property and rent it out. My senses tell me to put down 5% which would only be about 30,000k into this deal  still leaving me with 110,000 ish for further deals. Any thoughts on this  Thanks 

Awesome great info @Greg Franck

@Greg Franck thanks for the response info. Please explain Your 10% percent stress test . I definitely don’t want to be cash flow negative but maybe just in the positive with a high likelyhood for appreciation based on what that particular market was doing year on year prior to covid. I understand the point of wanting your rents to cover all your expenses. I also don’t want to be to far in the negative because this could potentially raise my dti and make further lending in the future harder. To me ,getting a potential 10000+ Dollar or more appreciation in a solid market year on year would be the more solid move . After few years it would be a significantly higher amount of money than being in a cash flow market that has a lower appreciation. It’s really simple math to me. You could save all your cash flow month after month but it doesn’t seem to outpace appreciation if your in a good market. Not to even mention the head ache factor of dealing with less desirable markets which to me are a lot of cash flow markets 

Hi everyone, 
Needs some thoughts here. 

I am currently placing offers on properties right now. I have a sizeable amount of cash on hand ( 200K) and 450K loan that I will be using to spread over a few multifamily properties . I am a high w2 earner and my lenders have been using my current rental income to offset my debt which has kept my DTI low, so I don't anticipate having any future issues with obtaining lending for at least up to the first 10 properties I buy.

Which brings me to my next hurdle and clearly the biggest for a lot of people ( THE HIGH DOWN PAYMENTS) for these non owner occupied investment properties. I want to set my self up for success early. I am in the process of putting offers on my third and potentially fourth properties currently. 

What would you do: OPTION 1

Would you buy Multifamily that cash flows high in cash flow friendly markets and save that monthly cash flow towards your future down payments ( seems) like it would take a long time to acquire enough money to have a big down payment. ?

Option 2 : 

Would you buy property in a area that might not cash flow as high every month but had a high likely hood of appreciating in the years to come ? To me this seems like the smarter move because then I could do a cash out refi on the property and have a large amount of money to use as a down payment on further property/ properties .