All Forum Posts by: Peter C.

Matt, do you know if you will qualify for conventional/FHA financing? The loan limits are high enough here to occasionally work for the 3&4 unit properties, and the down payments are very low (3.5-5% can be possible). I ask because the income qualification can be a little more work for people who are self employed, but it is totally doable. Depending on the loan product, you can use 75% of the projected rental income towards the qualification as well. If this is the case, I believe there are a couple projects in our area that may be feasible.

If instead your plan is to use savings, or savings + hard money/seller financing, please let me know. There are options here too but it's a different group of properties

Is it the actual purchase price that is scary, or the money out of pocket (or both)? I definitely agree prices are very high right now and I'm seeing more competition making offers than before. Personally, I'm still looking for deals here but am being extremely selective.

We actually have some things in common outside real estate; I have some experience with laser cutters, CNC routers, waterjet, as well as conventional milling and carpentry. I'm not on here much, happy I saw your post. Feel free to connect or PM if you'd like to talk more.

Sounds like you are looking in some good areas. Bonny Doon gets more sun than most of the mountains (flat is another story) Day Valley/Corralitos is a great area too and flatter. Once you are about a mile or two inland you avoid a lot of the fog

How much of a fixer upper are you interested in?

@Colton C.

Here are a couple thoughts for you

Santa Cruz is an expensive place to live, and deals are hard but not impossible to find. Try looking a little bit more in the cuts. Got to shout out for the Santa Cruz Mountains here if you are ready for a different kind of adventure. 

I'm guessing you have considered this, but one way to get the benefits of rental ownership and still have intermittent access to your property, would be the Air BnB route. This may or may not make sense depending on your ratio of days on the road vs the property.

If you do go with SC, I would again recommend looking outside of city limits (doesn't have to be in the mountains, just not the city itself). Check out this site for more info on the anti ABB sentiment in SC City, http://www.unfairbnb.net/

Not everyone likes the woods; my opinion is happily biased!

Having AC for the couple weeks you need it does sound like a nice bonus. This conversation got me searching. Apparently, true luxury is only $50 away

 https://www.amazon.com/dp/B001M067OK/ref=psdc_5426...

The name is pretty good too. Best of luck to you in your upgrades!

I don't have personal experience with the ceiling units, but I am in a similar situation. All electric house in the Santa Cruz mountains, crappy wall furnace, but a good wood stove. If you only have a regular fireplace, and not an airtight wood stove, you are really missing out. 

Consider if your tenants would pay all utilities or not. In our area, we can get a better electric rate if the house is all electric. Propane delivery at our individual location is a pain too. 

If you want a warm toilet seat, you probably need central heat or a really fancy toilet...

@Steve Hodgdon Thank you for starting this thread; very informative already! I have heard one strategy for the door knock scenario that I wanted to bring up.

Can you send an unlicensed door knocker to the borrower's home with a cell phone, so when the person answers the door you can speak with them directly over the phone right then to negotiate?

Wow, there is a ton of useful information in everyone's answers; thank you for starting this thread @Jeff Caravalho ! I'll have to read it again to get everything. 

@Account Closed Thank you for sharing some insights on the other side. 

It is interesting to compare what would happen to a person's portfolio in a downtown, depending on if they were more exposed to rental property or focused on "being the bank." I think it would hard to argue against some of both. A moderate amount of secured private lending could actually be a great help in a downtown. The tax advantages of rental property are too hard to pass up as well.