All Forum Posts by: Sarp Ka

Hey there, I'm researching multi family market in the Bay Area, CA. The market is terrible however if I were to live here long term, it seems like a better idea to buy a multi family and rent out others; than buying a SFH and renting individual rooms.

The problem is, real estate market is crazy expensive here, where starting price is 1.2-1.5M. Ideally I'd target for a property worth 1.6M, and pay 10%. So approximately looking for 1.4-1.5M loan.

I know jumbo loans can go as high as that much, but the problem is they'd be requiring 20% downpayment, which is not something I'd want to do.

Is it possible at this point to get a loan with only 10% downpayment? If so, which lenders would do that?

Thanks

 Have you ever looked into the market? Even with multi-family in Richmond, you're making cashflow negative on C class neighbors. Plus with the rental laws, tenants could easily not pay the rent for a year and you still can't evict them.


As for the OPs question, I've recently created a thread and looked through all the answers. Unfortunately majority of people here would write you answers of their area, hoping that you invest there. It'll likely to benefit them one way or another if you choose to invest there.

Unfortunately the market is not the same as what it used to be. 1% rule exists in areas where you wouldn't want to step on, with the hopes that area will over time get better.

One very important investment factor is, the tenant pool you'll be targeting. Try to connect to property managers to understand what sort of tenant will live there and make your judgement, after numbers making sense. A lot of the places where it looks great on paper, they fail to have this done right.

 Hi Bill,

I am looking to get an umbrella insurance policy. My landlord one doesn't provide unfortunately. My auto insurance is progressive, apparently they do have some issues (I've read it on BiggerPockets). I only have 1 property at the moment, which company would you recommend?

Thanks a lot everyone. Based on these responses, I will look into Columbus, OH; Indianapolis and Kansas City (I am guessing in MO not in KS state).

Other ones like NC, TX I don't think they have good returns (and majority of people from there just asking if I looked into them). If you think they have good returns please provide recent data point.

 Yes I've considered NC for both Charlotte and Raleigh-Durham. They are not cashflow positive or there's barely any cash involved. So I am not looking for NC anymore.

 Sorry where do you find those A or B class areas? If you mean few hours drive away from me. They don't exist for my market (Since properties here are now costs $1M and you're always cashflow negative)

I was justifying why your article doesn't really answer my question here. I'm not too sure if you're suggesting me to spend more money so that I can buy in those areas?

I am also not really replying people with excuses. The ones who I am not replying I will be researching that first. In fact I found majority of answers here very useful. I'll be looking more in to mid-western markets and seeing what are the neighbors that I can invest. 

I have read that but unfortunately they don't match with my initial post. That's why I created this thread.

Just to remind you two things that I am looking for:

1.  I don't really have any set budget, I don't have a lot of money for buying "as-is" properties that cannot get a conventional loan. I can afford up to 100-150k downpayment + rehab costs.

2. I would be into areas where the crime is not high, population has stable and mid-class income. B class neighbors and tenant pool is what I am after.

Cities like Raleigh, you cannot do this with that much amount of money; so it doesn't satisfy the 1st condition. Cities like Atlanta, if 1st condition is met; 2nd condition does not satisfy (or at least I couldn't find any from my search)

I thought maybe market has completely changed in the 2nd half of the year. That's why I am revising where to look for.

I've looked into that but if I am not getting 1031 tax benefit; then I don't really see the point of doing that vs just buying VTI or QYLD stock (or maybe some REIT stock)

 I was hoping not to actually fly there and find people to do the rehab/repairs and a good property manager.