All Forum Posts by: Sean Autry

Hi BP Community- I successfully bought my first B&H a little over a month ago. 1% Rent to value; 20% cash on cash; 7ish % cap.... For So cal, I'm overall I'm happy with the numbers. The problem? I bought it wrong. I have cash in there I won't be able to get out until it appreciates. So, my question to the So Cal investors out there is this: Has anyone had recent (current market conditions) success with BRRR in so cal? I'd like to build a portfolio at a rate faster than 1 or 2 properties per year. BRRR seems to be the only way to achieve this. Has anyone been able to do this in today's So Cal market? Thanks all!

Trulia is another good source to see what competitors are renting their places for. They have a heat map with various features (crime, amenities, etc), which helps to see how comparable your area is vs theirs... just an extra price to help me get comfortable that it's a good comp

Jeff G. So this like a portfolio loan? Is it one loans that is tied to the equity on your rentals AND your primary? Or you have separate equity loans on your rentals? I ask because getting a 2nd on the primary has been the easy part, but getting a 2nd on my rental (independent from my primary) has been the harder part.

Rudy Hassa , hey it appears you live close by. If I happen to find better luck with a local bank, I'll send the message along to you.

Good luck getting feedback on this. I've posted the same question twice with limited response, which tells me these may not be very common. Following this discussion in the hopes you find what I haven't.

Obvious answer is ask a lawyer. Beyond that, I would say a close relative has a pretty sizable commercial portfolio and they will not rent to this industry as long as it is federally illegal.... this relative happens to partake in the product (if you know what I mean), and still they want nothing to do with that industry until it is fully legalized. Too many variables- what if the Feds shut them down, where's your rent? What if the Feds come after YOU for allowing it to occur on your property? What will you do then? So take that for what it's worth.

PS- congrats on your first investment!

Scott Gammenthaler Hey Scott- regarding basic accounting software I'm a BIG fan of Xero. It is similar to Mint.com (if you're familiar) where your bank feeds automatically link to the software. Then as expenses occur or as deposits are made you can set up rules for it to automatically book the entry into the accounting ledger. You can also issue customized invoices to your tenants out of the software, and when you do it automatically keeps track of your receivables. You can also manage contacts (vendors, contractors, plumbers, etc) and attach supporting documents directly to the related transactions in the system to keep organized. Very user friendly, very intuitive, and VERY affordable. The cost is $10/month for what you need it for (limits your total invoices to 5/mo, which is plenty for a duplex)... as you acquire more, you can pay for $30/mo for more access. I use this software for more my rental, and a fellow CPA I'm friends with uses it for all 1,000 of his clients. Clearly I'm a fan; I'd recommend it to anyone.

The lender will set the minimum and from there it's up to you. You'll see as low as 3% FHA (owner occupied), but you'll pay a fee monthly insurance fee for that. For investment property I've seen it as low as 20%, but I've heard theres quite a reduction in rates/fees/discount points at 25% down. Your goals and your numbers will dictate 20% vs 25% down. (All of the above is based on conventional financing; I have no experience with HML)

I'm a big fan of Xero. It is a very user friendly cloud based solution and works with automated bank feeds to make your life easier. (Though, I think QB does this too, so Might be a moot point). You can produce and customize invoices from it (manage your accounts receivable), manage payables, upload documents (payable invoices, tenant documents, etc)... it's a great system both to keep you organized and to keep your books in order. Needless to say, I'm a fan.