All Forum Posts by: Robert B.

@Erik B. Great questions. Goal is to invest locally in long-term SFH rental properties; (B properties). Need positive cash flow but appreciation is main objective given long-term horizon. No oppty for forced equity in this scenario as I don't want to push rent into higher band. You have me reconsidering - you make a good point re vacancy. Need to think about this a bit more.

@Ryan Cleary Thanks very much for the comments. You're spot on.... this is more of a bet on appreciation as this deal is 30% down with only a 2.5% COC. I assume 3% increase in all expenses and rent so COC rises moderately YOY. Long Island is so tough; I struggle with the thought of investing outside local markets.

From WSJ....  "Last week, Fannie Mae and Freddie Mac said that they would charge lenders an extra 0.50 percentage point to buy most types of refinancings that they back. That fee is likely to be passed on to homeowners, further pushing up refi rates relative to purchase rates."

Searching for deals on Long Island is tough given high prices and high taxes. Here's a decent SFH in well-kept working class neighborhood, nice street, near plenty of commerce and transportation. This deal cash flows nicely, but only 4.4% cap rate. $500k pur price plus $25k of improvements needed. The costs are fully loaded including banking $3k for maint annually. I only assumed 2% for MGT as I'll do majority. Will finance traditionally with 30% down. ARV likely $575k. So overall - low cap rate, decent cash flow, 1% rule not met, Max PP 70% rule not met, but good location. Comments appreciated. Buy or Pass?

Searching for deals on Long Island is tough given high prices and high taxes. Here's a decent SFH in well-kept working class neighborhood, nice street, near plenty of commerce and transportation. This deal cash flows nicely, but only 4.4% cap rate. $500k pur price plus $25k of improvements needed. The costs are fully loaded including banking $3k for maint annually. I only assumed 2% for MGT as I'll do majority. Will finance traditionally with 30% down. ARV likely $575k. So overall - low cap rate, decent cash flow, 1% rule not met, Max PP 70% rule not met, but good location. Comments appreciated. Buy or Pass?

I've been wondering about this, but more specifically using funds in an IRA to directly purchase an investment property; (that is, not a loan but a direct investment). I am reading some things online and here's a quote: "Although you cannot invest directly in real estate in a 401(k) account, you can rollover your 401(k) into an IRA tax-free and then use the proceeds to invest in real estate."