All Forum Posts by: Rick Wheeler

Hey guys!

So I have been looking at a lot of properties and have narrowed down a few in: Tacoma, Olympia, and Shelton, Washington. I have found 2 Duplexes and a 4-plex all with good numbers and relatively low vacancy in their cities (under 10%). I just wanted to get an opinion on these areas in Washington! I am really loving these properties and depending on what I hear from you guys, am planning to make the trip up from So Cal to see them.

Here are the numbers to one of the duplexes:

Duplex- 3/2.5
Price- $215,000
Mortgage- $817 @ 25% down, 4.5% interest

Total Monthly Income: $2,215
Electrical Expenses: $180
Insurance Expenses: $86
Water/Sewer/Garbage Expenses: $180
Annual Taxes: $2,632 ($219 monthly)
Monthly expenses: $665

$2215-$665=$1550 NOI

$1550-$817=$733 cash flow

What do you guys think! Even if I choose to be ultra conservative and go with the 50% rule. I come out with decent cash flow of $283.

Total Monthly Income: $2,215

$2215-50%=1100

$1100-$817=$283

Hey Sam,

The numbers look good on paper, I know most investors like to be at 100-200$ cash-flow per unit. I think is the time to dig deep in the due diligence. Try to get get a rent roll, learn what you'll be paying in property taxes (which can sometimes be higher than you expect), and consider whether or not you will paying to have a PM company or you will be managing yourself.

Good luck!

Hey Zach, I am also interested in finding a good PM for a potential investment property. Let me know if you find anything!

Welcome Jack!

Greg Potter thank you for the detailed analysis. I had a feeling I was over complicating things. Also you were correct I am looking at a couple 4-plexes in Texas, and I am being very strict about my due diligence on the properties. Most meet the 2% and 50% rule amongst other things and are not in to slummy of areas. I would be happy to send over the numbers to anyone interested.

Brian Mathews I appreciate your concern and am not committing to that plan, just looking at all my options. My mom is very open to helping me invest and understands the risks. She actually helped me acquire my down payment money through money she loaned me for the stock market when I was 18.

Although I have not contacted a lender about a conventional loan, I have a feeling I will not be well received based on other investors experiences who I know personally. All lenders tell them the same thing, that they need to have a reliable source of income to prove they can repay the balance of the mortgage if things go sour. The problem is that I have no income to "prove" because I play poker for a living.
Which isn't a pay stub job.

Is it possible to take out a conventional loan in any form if I can prove to the bank that the cash flow is there?

Hey you guys!

So I am in need of some advice on purchasing my first investment property, most likely in the San Antonio/Houston Texas area.

Heres the deal...I have a down payment ready for a property anywhere below 400k and am looking to finance the rest through a home equity loan through my partner/ mom who has 100% equity in a home free and clear (located in California) appraised at 800k. Also, both of our credit scores are hovering 700.

She would like to help me out as much as possible and have the investment property put in my name. So basically what I am wondering is:

1) Could I go to the bank with everything I have said here and seek a conventional loan with her co-signing against her property in the form of a home equity?

2) That brings up the next question. If I am unable to achieve the above, then is it possible to get a home equity loan on her property to purchase another property in my name?

3) Assuming one of those options is actually possible. Would I then need to get a pre-approval letter from my lender to begin making offers?

Thanks you guys! I look forward to hearing your thoughts!

Glad to see plenty of OC locals on the site!

Dick Rosen Thanks for reaching out, we will be in touch if I make my way over

Marco Santarelli Thanks for the kind words and support! I will definitely be asking a TON of questions! I am just trying to narrow down my market right now.

Mehran Kamari I initially was thinking Phoenix, but am now leaning towards Texas. The reason I chose Phoenix was that I do believe it is a sunbelt state on the rise with a lot of potential home appreciation. However, I became more and more discouraged after looking more into the hedge funds purchasing billions worth of property. I dont think that will be very good for my vacancy rates!

P.S I have seen a ton of your replies on other members posts and have found them very helpful!

Brandon Turner huge fan of all your posts and pod casts, but I am shocked I never came across this one! Thanks!

Hey Kevin,

Wish I saw this post earlier, this might be something I'm interested in. Let me know how things are going, and if you are still looking for partnering/financing.

Hello BP!

I am currently looking for for buy-and-hold investment property somewhere in the Phoenix area. I have already found several deals where the cash flow is great, and I plan to make a trip out there (coming from So Cal) before the end of the month.

I am just curious what the community thinks about the Phoenix market having seen a dramatic increase in property value in the last year. I'm mainly concerned about buying at peak prices, leaving no room for appreciation. However I have also read that the influx in property purchases by investors were made mainly on SFR's. I know that their strategy is to rent the properties out, is that bad news for me and my potential multi-family unit in terms of increased vacancy?

My main goal for these properties is mainly cash flow and not so much appreciation, but I definitely do not want to see any depreciation either.

Any thoughts from those in the Phoenix market would be greatly appreciated!

Hello BP community! My name is Rick Wheeler from Orange County CA! I am a 21 year old college student who has limited background in RE, other than listening to my mentors talk about their properties.

My goals are currently to purchase a multi-family unit for a buy-and-hold strategy, and maybe do a few flips if I get bored! I would love to purchase something in CA to stay local, perhaps in the Inland Empire, Orange County, San Bernardino, Temecula are etc. If push comes to shove I have even considered branching off into the Phoenix, Arizona market.

I joined the BP community to hopefully contribute as much as I can about my journey along the way, as well as connect with other like minded investors, mentors and RE junkies!