All Forum Posts by: Scott Scialabba

Quote from @Corby Goade:

Lots of things to consider here; generally speaking, the higher the ROI, they less desirable the properties are. Many new investors get excited by high cash on cash returns in the midwest and buy rough properties in D areas and they get smoked by property managers, tenants, vacancy, capital expenses, repairs, turnover costs, etc.

Your best bet is to invest in growing areas that are landlord friendly and where you can either connect with or build a good team yourself- realtor, property managment, contractors, etc. 

I invest in Idaho and have had good luck there- probably the most landlord friendly state there is. 

Best of luck!

 Can you elaborate on the "Landlord Friendly" classification? I'm thinking of horror stories I've heard in Portland Oregon. 

Samesies. Hello!

Quote from @Mitchell Gunlock:

Hey everyone! First-time poster here. Just wanted to say hi and let you know I’m looking forward to learning from all your helpful advice!

 Glad to meet you

Hey guys! Glad to finally say hello. I've been anon lurking for years but am quite keen to roll up my sleeves to learn more. I have an 6 unit apartment, co-own a brick and mortar and looking for my next thing.

I am curious about AirDNA, any use it and rely on it.. in general? I tried it out for Joshua Tree, CA and it seems a little optimistic.

I'm a BRRRR investor but interested in my first STR. I've seen a few properties come on the market that are right next door to other STRs.. thoughts on this? I suspect there's pros and cons?

Quote from @Nash Mittelman:

I'm a real estate agent in the bay area and have found that three and four-unit buildings with FHA loans don't ever pencil out because of the "self-sufficiency test".

What do you mean by "self-sufficient test", I expect you're looking at the Debt Service Coverage Ratio, or something similar?

It's going to be difficult to find anything that cash flows in the Bay Area with current rates, and still harder with mortgage insurance on top of that. I do know that FHA loans can be assumable though, it might be worth trying to find a property with an existing FHA loan that you could assume.. have you seen any of those? I'm in San Diego, and I see assumable FHA loans from time to time. They go quick though!

I agree, although 5% for 7yrs in this market, is a great.. What's the opportunity cost - can you find a better opportunity in your market using roughly the same amount of capital?

What are the terms, and how favorable is the owner financing compared to what you can get on the open market? And how hot is this market, and this property specifically? You might be able to take owner financing initially, but yeah.. once you rehab and you want to pull cash out, you'll probably have to refi.

All of this is great advice. I always look for a realtor that has been working in the area for at least a few years, and has built up relationships. The last deal I purchased.. the only reason we got it was because our realtor had a relationship with the seller's agent. In hot markets, a well-known relator can really help.