All Forum Posts by: Patrick Senas

Hello BP,

I know this is subjective but what are seasoned investors using as metrics to say if a property qualifies as a base hit in high priced markets? Specifically, buy and hold rentals (SF, small MF)

Glad your first one turned out ok! Yea I agree, getting the first deal done is key. Unfortunately the median home prices in SD is $1M. I can't exactly go off the cuff and wing it. A financial mistake on the deal would be detrimental to say the least. So I need the numbers to make sense. I was just curious as to what metrics investors were using in my area to consider it a "base hit".

I'm definitely looking for base hits. Mostly looking for properties that could use some love. I'm trying to avoid turnkey properties because I want to be able to add value.

Me and my wife have been saving up, so we lived at her mom's house for barely anything. So any place we move into will increase our cost of living. But it's all about perspective. Ill just compare cost as if I was renting a similar unit.

@Doug Spence - yea I'd love to connect

@Scott- after doing some more research, from my calculations I would need to live in the property at least 4+ years before moving out in order to be net positive once I rent out the other unit. So maybe my 1 year timeline is a bit out of reach. I don't want to carry the property for multiple years before it breaks even.

Hello BP community,

My wife and I just got married this year and are looking to find our first multi-family rental in San Diego. The plan is to house hack it and use my VA loan to fund the deal. Our big goal is to get a primary residence loan every year to build a portfolio locally. We got pre-approved and I am going through the MLS listing to find our 1st deal.

From the BP podcast, videos and books I get the basics on analyzing a generic deal. But Im still lost on how to determine if the property is a good deal. What CoC should I be targeting? What year should I target to be in the black as far as cash flow? Are these even the right metrics that I should be focused on in an appreciation market?

Any advice would be much appreciated. Or if a video exists where someone does go through the breakdown of their house hack in a high priced area that would be even better! 

Thanks and I look forward to discussing this more with you pros.

I'm sitting down with a big rehabber in the SD area to discuss doing a joint venture. Essentially I'm coming in with $40-50k to fund a deal. What I want out of it aside from a nice COC return is to learn about flipping homes. How do investors normally setup JV's? Would you, a rehabber, take an investor through the whole process with you to learn the ropes? Or do most expect the investors to be silent partners. Just curious if this is a norm and possible for me to do.

What questions do I need to be asking in this meeting? Any red flags I should be on the lookout for? 

Depends on your preference and that of your lender. Depends on how your funding the deal, having current tenants will make financing go a lot smoother. Not all inherited tenants are bad. Ask the current landlord or PM about the current tenants and their history. I would take their advice with a grain of salt. They may just not want to deal with the issue. It would show on their P&L statement though if the tenant is missing payments. Maybe even go as far as asking the neighbors. The neighbors will be very upfront about how great or not so great the current tenants are. 

I believe there's also a form that you have the tenant sign once you take ownership. You would have to abide by the current lease they had with the previous landlord though. So if they are late the first month, then set them right. Then throw some notice to perform at them, then boot em if they don't abide by the contract.

I grew up in Waukegan & Gurnee but currently live in San Diego. I'm looking to invest in cash flowing properties so I figured I'd start looking near my hometown. I do want to invest in Chicago as well but the city is so large and unfamiliar. I wouldn't know which neighborhoods were safe to invest in.

I primarily want buy and hold investments. Preferably those that I can use the BRRR method with. Though I'm not sure how I can accomplish that from across the country. I'm in need of knowledgeable agents in the Chicagoland area and outlying suburbs. If anyone can make some recommendations it would be greatly appreciated!!

@Alex D., I used to live in Ewa Beach!! I was stationed at Pearl Harbor. Where do you mainly invest at? I was thinking that if I do invest in IL that I should look towards university areas. I was only looking at Gurnee because there's an opportunity for an off market deal for a nice townhome rental. Trying to determine if it's worth it. I do think Gurnee is mostly a nice area.