All Forum Posts by: Stephen DeThample

If you can afford to buy, it is always a good time. The question is, can you find a property that makes since for you? The higher interest rates are making it easier to buy a home due to less competition. I have noticed the outdated homes in Las Vegas sit longer and they give good opportunity for a house hack if you do not mind the updates.

1 Vote

Detroit, Michigan

Quote from @Rebecca Readus:

Hello, I am looking for a home in the Orlando area and slightly beyond that can be used as a vacation home, and also a rental. The wish is to have an in law suite, ADU, or portion of the home that can be enclosed and made into an efficiency apartment that can be used for the vacation home. The rest of the home would be rented short term, mid term, or if necessary, then long term. What do you look for when looking at traditional homes online (without having to drive all over and look at a ton of homes that will never work) to see if you can modify the home to make it work for this scenario?

First thing I narrow down is available parking. Some homes have lots of rooms, but no parking for the people. Most agents never bring this up. Speaking from past experience, parking is the biggest deal breaker. You can check Apple or Google maps to get an idea of available parking spots.

1 Vote

Quote from @Account Closed:

Quote from @Rebecca Readus:

@Account Closed where are you looking? I'm in Orlando.

Las Vegas, Nevada

Would need more details.

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Quote from @Lucas Moncada:

Quote from @Stephen DeThample:

Hello @Hector Mejia

First thing you will need to know is, what is your investment strategy. Are you focusing on a long term rental, medium term rental (30 days to 6 months), short term rental, or a live in house hack?

This will help you focus your search and make the market analysis easier.

If you have questions, let me know.

"long term rental, medium term rental (30 days to 6 months), short term rental,"

Not the OP but, how so?

I’m not sure I understand your question. Are you asking how to pick one?

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Hello @Hector Mejia

First thing you will need to know is, what is your investment strategy. Are you focusing on a long term rental, medium term rental (30 days to 6 months), short term rental, or a live in house hack?

This will help you focus your search and make the market analysis easier.

If you have questions, let me know.

0 Votes

If you’re looking for newer class B multifamily, they exist, but you do have to wait for them sometimes and act fast. you’re looking for C or D multifamily, they are available more often. I personally would wait for better investments with the B or higher properties.

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Quote from @Gregorio Villar:

Hi Everyone,

I bought my last 2 properties while I still had a W2 job. One property is a condo (in CA) that I rent out, and the other property is a house (in NV) that I live in and rent out the other rooms.

I quit my W2 job last year to start a business, which is slightly profitable today, but I reinvest everything back into the business.

I have a bunch of cash saved up and am comfortable deploying $100K into another property in Las Vegas ($80K down payment + $10K furnishing + $10K margin).

The only problem is that I’m not sure how to finance my next house without W2 income.

I talked to a few lenders about DSCR loans, and most say they calculate rental income based on the entire house, instead of by the room.

I would love to get the creative knowledge of the BP community on how to fund my next home 🙏🏼

I'm also open to any lender referrals 😊

Ask the lenders if they take MTR rent rates if you can show comps. Furnished rents are much higher.

1 Vote

Quote from @Kevin S.:

Quote from @Stephen DeThample:

Quote from @Kevin S.:

I don't disagree with you. Where I am at I cannot find any property with the 1% rule. Properties do not cash flow with 20% anymore here. Suggestions?

The 1% rule is not happening at the moment. Brandon Turner has said it was just a quick way to evaluate and not real in this market.

Try MTR (medium-term-rentals) or rent by the room (house hack with or without you in it). They can make the cash flow even or positive.

I attended a seminar on Padsplit and ever since I am getting emails from them about Padsplit properties on sale. Needless to say, the cap rate and COC are better bc of rental by the room. I am not sure if I want to buy them and end up paying more compared to me buying a regular property and converting to Padsplit myself.

Most times you are better off buying your own properties. They are a business that is trying to make money and some of these give bad advice.

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Quote from @Kevin S.:

Quote from @Stephen DeThample:

Quote from @Kevin S.:

Hi BP members,

I am looking to invest in a SFH that cost about $400,000. With 20% down the property will negative cash flow $500/mo. It breaks even @40% down. One lender advised me it's better to negative cash flow if I can afford it and still do 20% instead of 40%.

Reason : the additional 20% or $80,000 is better spent towards down for another property (provided of course I can afford twice the negative cash flow) because the annual appreciation @ 5% (which is likely in Florida) will be greater than the negative cash flow per year. That is $6000 negative cash flow for $20,000 appreciation in return. That is still a 17.5% return(capex not included). I don't discount the possibility that the lender gets to finance 2 properties instead of just one but the proposition does make sense on paper and in theory. Does anyone refute this or agree with it? Am I missing anything? Thanks in advance.

This is sometimes a matter of comfort for the buyer. If putting 40% makes you feel secure and you can afford it, there is nothing wrong with that. This is a common thing for investors who do not want to worry about the future.

If you are looking to build a portfolio of homes still, then it might make sense to buy 2 at 20%. It comes down to your level of comfort and should never be push on you, just offered as advice.

Thank you, Stephen. Since you are a real estate agent (and if you work with investors) what are you seeing in your market? Are investors putting more than 20% down in the current market? If so, what percentage of them are doing it and what percentage are able to keep it @ 20%. Would love to hear from all real estate agents on BP. I might post this question by itself on another post, actually. Thanks.

I have a few that always do it. Even 50% at times if they really want the A class neighborhood. Most investors try to leverage into more properties or keep the extra cash for reserves, which is also a "feel good" safeguard.

0 Votes

All Forum Posts by: Stephen DeThample

Stephen DeThample has started 5 posts and replied 440 times.

Post: Worth it to take a negative cash flow for a year to then be able to fill occupancy

Post: Is 2024 The Year to Get Into my First Property? First Time Investor!

Post: What do you look for in a home you wish to house hack?

Post: What do you look for in a home you wish to house hack?

Post: Las Vegas vs. Bakersfield

Post: Las Vegas vs. Bakersfield

Post: Buying a MF property in Nevada or Arizona

Post: How Do I Finance My Third House WITHOUT W2 Income?

Post: What would you do?

Post: What would you do?