All Forum Posts by: Sandy Salazar

Thanks everyone! Not sure how soon I can find properties. I haven't seen anything yet that grabbed my eye. I can be pretty aggressive when I find something. Analysis paralysis is not me. The last time I invested out of state, I purchased 3 properties in cleveland (solid areas) within 4 months, but ended up selling them 3 years later because of high turn over with property management groups. They weren't doing repairs, it was more beneficial for them to turn over tenants than to manage and hold them. I couldn't find one that I could trust. So I think if there is any delay on my part is because I am trying to find a good management company. 

For the refi I have a DSCR lender ready to loan me 100% of the appraised value since I've owned the property for more than 6 months (had it for 12 years) and the the debt/income ration is only for the property (not personal). The lender requires 1.25 ratio, property brings in 2.5 well over qualified in this case - thanks to the high rents in california. I dont qualify for the increase on the HELOC because it is a credit union requiring personal income (I started a business in 2021 that is not making the type of income they want to see).

@Steven Goldman @Sergey A. Petrov I would love to get a HELOC (currently the property has one that I established over 10 years ago - that I use frequently - when i refinance it would pay off the HELOC) - the problem is that I wouldn't be able to qualify for HELOC at this time. I tried reaching out to my credit union that is holding the HELOC on this property (they're in 1st position) to see if they would increase the HELOC (property has over 100K in equity). They still need me to requalify.

Hi everyone, would love to get some advice for BRRR method. I have a property currently that I want to use for the BRRR method. I can take out about $100K to purchase other residential real estate. Property is currently rented and if I take out the $100K the tenant would cover the mortgage (as well as all cap ex/vacancy/etc). Do you guys take out the cash NOW and hold on to it until you find a deal even if it takes 6-12 months? Do you just hang on to the money until something comes up? I would hate to be paying higher interest rate on this 100K with nothing to show for, but don't want to miss an opportunity if it arrises.

stuart title in riverside gave pretty smooth transition.  I did three refinances with them, and on the third one they gave me discounts on their title fees.

ask for seller assist.  What it is you give the seller a higher purchase price, but the difference will go towards your closing cost instead of you paying the closing cost.  I believe fha allows up to 3-6% seller assist. Double check that. So for example let's say you purchase the property at $100,000, you ask the seller for 6% seller assist and offer them $106,000.  The seller will accept it and during escrow when your lender dispenses the money to escrow of $106,000, escrow will give the seller 100,000 and use the 6,000 towards your closing.  You will essentially be financing your closing cost into your loan.  It doesn't effect the seller at all, they still get their purchase price and the paperwork shows its seller assist so they're not paying extra for the $6k. See if that works and if it doesn't some times your lender might give you seller assist.  (Finance your closing costs into your loan) Check with your lender. Good luck!

@Matt Leonard try connecting with @Simmy Ahluwalia he has a program that is private money from $10k-150k.  It is a short term loan that doesn't not go on your credit report and is unsecured (meaning it's not tied to real estate).  I was looking at doing that with him for the next couple of deals.

@James Davis I've thought about vacation rentals especially near the beach in Southern California, you would have great demand and high returns. You just need to factor in costs associated with cleaning, maintenance, and furnishings. Websites like homeaway and vrbo are great sites to list your properties. just make sure you read your HOA rules and regulations (if you have an HOA) a lot of beach cities HOA prohibits properties from being a short term vacation rentals (anything less than 30 days). you would have to do it "under the radar" but if the HOA found out they can foreclose on you.

@Kheri Mourad real estate is addicting!  My most used apps on my phone are Redfin, mortgage calculator and BP!  I've been a landlord since 2009 and slowly accumulated 3 properties 7 doors total.  It's tough to do when your a stay at home parent with one spouse working, trying to save money to cover your personal expenses, your kids expenses and buying real estate in Southern California (it can be done).  However I got into it because my father in law who came to the U.S. And worked as a dish washer, and my mother in law who dropped out of 5th grade to work in the farms, came across an opportunity to buy a small house in the desert for roughly $30k and rented it out to approximately 3 tenants over the course of 10 years (wish I had that low turnover), sold that home at the height of the market and had enough to pay off their existing home and a good retirement cushion.  Living mortgage free at the age of 55.  And they only did that with one house, imagine the possibilities with the 3 properties I own and the more I plan on accumulating.  My husband still wokr, we still save and budget so we can finance our next deal.  That's why we got into real estate.

Focus on your job, do the best you can, get promoted, earn bonuses, pack your own lunch, and save every penny for your next deal.  Real estate is not a 9-5 job, it's 24/7 hobby that you will enjoy and be excited about, and the harder the drive, the bigger the reward, the sweeter ther retirement😀 

Best of luck!

@James Davis welcome to BP! It looks like your getting yourself ready. Southern California is expensive, but it doesn't mean you can't make money. from what I read it looks like you want to do fix and flips. I am personally not familiar with that, the only fixes I've dines is when I've bought REO (off the MLS) I had to do major repairs and renovations but not to resell, i prefer the buy and hold strategy. Here's my two cents

Make sure that you know what your repairs costs are and ARV is going to be after the flip, you wanna make a profit (especially of your doing loans with high interest.

Have an exit strategy, know what the rent comparison in case you can't sell the property and have to rent (and refinance to pay off your hard money lenders and line of credits). You don't want to be a negative cash flow.  A 400,000 house with 20% down may have a 2500-3000 monthly payment and holding costs, I am not familiar with the rents in Chula Vista, but out here in the San Gabriel valley it has to be a really nice house to rent for that much.

Check your numbers and have the BP community double check yours, I recently found something that I was on the fence and decided to write about on BP.  I got a lot of great feedback about things I had missed, turned out it wasn't a good deal after all.

Best of luck!

Sandy