All Forum Posts by: Pratik P.

Like Aaron said above, don't worry about interest rates or how high you should buy. If you're generating at least $100 in cash flow AFTER mortgage, repairs, vacancies, etc, then you may have a good deal. You'll need to research the rental market in the specific area to see if buying a rental there is even a good idea. Crime rates are also important. 

In general, I've been hearing that rental investing in the bay area is horrible so I would stay away from there and look more in-land. 

Erick, from some quick calculations, it looks like you're going to break even every month on this deal. You need to factor in repairs, vacancy, Capex, insurance, and property taxes into your monthly expenses along with the mortgage. I would say either negotiate a much lower price or move on.

Hey awesome people of BP!

I have a question for you guys regarding private money...here's my situation. I and my partner are looking to get into buying rental properties in the sacramento area. The type of property we want is a multifamily (preferably a four-plex) where we use an FHA loan and I live in one of the units for a year. Problem is, we still need about $10,000 for a down payment on a property valued around 250k...which we don't have.

What if I found a private money lender who would lend us the 10k and in return we offered a certain percentage of the monthly cash flow for 2-3 years and then pay back the principle 10k by refinancing the property and pulling out some of the equity it has built. Do you guys think something like that would work? If so, what kind of terms would a private lender want? 

Thanks for your time and advice!

Pratik

Thank you for all the great responses! I've read each one multiple times. 

I think what @Gordon Cuffe suggested may be the best way to go for me. Since I want to put less than 20% down, I'll find a good SFR deal or maybe even a duplex, rent it and hold for some time to build equity. Then sell it to cash out and use that to fund a down payment on a larger property. How does that sound to you guys?

Which leads me to more questions!

Would I be able to 1031 the above plan? I don't see why not.

I heard it's "easier" to get loans for commercial multifamily properties compared to residential because banks see them as more profitable. Is this true to some level?

@Conor Hesch @Gordon Cuffe I'll shoot you both an email! 

I appreciate all of your help

- Pratik

What are you expecting in cash flow? What's the monthly mortgage? How much exactly are you putting down? I'd calculate the annual cash on cash return and see if that's satisfactory to you. :]

How much are you putting down? How much is your monthly mortgage? I'm interested in knowing what your cash on cash return would be for 1 year!

Hi everyone! 

I'm brand new to Bigger Pockets and have already learned so much! Thank you for this amazing community.

I'd like to get your guys' advice on my situation and what you think would be the best way to proceed. 

I'm 24 years old and have recently decided that I would like to invest in rental property in/near the Sacramento area. This would be with a partner so I have a co-borrower. Ideally, I'd like to go straight into multifamily properties as I'd prefer to have multiple doors under one loan instead of just one (if that makes sense). The main goal is to start small with maybe a 4/5-plex and 1031 my way into complexes with a lot of units over time. That's why I want to start ASAP.

My problem: I have great credit history. Never missed payments on anything with a score of 750. However, I'm only looking to put down 10k-15k for the purchase. Is it possible to finance a multifamily with less than 20% down? How would I even get approved for a property that's >400k? Or should I start with SFR?

Please let me know if you have any specific questions. Thanks for your time!

@Dash Siva Thanks for the welcome and suggestions! I will definitely be getting more involved with the community. :]

Hey everyone!

After many hours spent on this website, I've finally decided to create an account and become involved in the community. I'm Pratik, pronounced (pruh-teek). I'm 24, work as an EMT near Sacramento and have just gotten into the realm of Real Estate. As of now, I'm just getting into wholesaling. Hoping to learn a lot like estimating ARV, rehab costs, and build many relationships within the community. If anyone is a wholesaler/rehabber in the area, I'd love to hear your suggestions and advice.

Have a great day!