All Forum Posts by: Terry Lao

@Chris Hughes

I've been on bigger pockets since 2014. I notice many forum posts repeat with same questions by different people at different times. Based upon your question, LV only, why re-invent the wheel.

Terry

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

@Dan Nim

A few more details. I did not raise to market because I was waiting for inherited tenants to leave, make some improvements, then raise rents. However, none move out date, this was Apr'16.

The complex is comprised of 104 4plexs, more or less. I just did a search on Zillow, and only (1) 1 bed/1ba is availiable for rent. I rarely see any units for rent, and if available, goes fast. It is because just so close to the strip. Great for any service worker on the strip.

Terry

@Dan Nim

I manage myself from out of state. This is not that difficult. However, must have certain things in place, like home warranty, appliance contact, and handyman contact. Having those (3) items in place should take care of 90% of issues. In my experience, the number one thing that I get phone calls for is AC in summer and heater in winter. However, the home warranty will cover AC and heater. Managing yourself will save at least 8%. My 4plex in Park Villas, and all units in complex are a mix of (1) 3 bed/2ba, (1) 2bed/2ba, and (2) 1bed/1ba. My rents are $750, 700, 600, and 585, respectively. Link needs to be updated. Market is 950-1100, 850-950, and 700.

Terry

@Frank H

Loan considered conventional if 2-4 units. Normally 25% down. Can use rental income from units to help qualify for loan. Just provide lease or rental agreement. For example, 4plex, fully occupied at $800 per month each unit, can use 4x800=3200 towards debt ratios. Could be 3200 x.75, as .25 is calculated for expenses.

Terry

Below is snapshot of median priced homes by county for Southern California. Median SFR still going up from 2018 to 2019.

SF Bay area did go down in most counties. I don't think bay area is indicative of whole California as shown by chart below. SF Bay area had to go down due to outrageous gains and prices from previous years. I think the key driver was stock options offered to key employees by top tiered companies like Google, Facebook, or any company that offer free food.

I thought the next recession would hit by 2020 Q4. This was based upon the inverted yield curve on short term interest rates yielding greater return than long term interest rates. When making any prediction, one should state reason why, and not based on feeling or just because it is due. Now, the X factor is the Nov'20 election. If certain candidate wins, who proposes elimination of student debt, free education, and free healthcare, then we are sure to have a recession. 

Just my two cents.

Terry

@Account Closed

I sent you a private message. Can answer your questions more in detail.

Terry

@Irene

@Account Closed

@Bill B.

Area is called Parkway Villas. Bill can attest to the area, as he has mentioned complex several times that he liked.

https://www.redfin.com/NV/Las-...

@Account Closed

I'm in your exact situation, as live in Anaheim. However, I developed my game plan in 2013. I liked going to Las Vegas, but normally stayed on the strip and the casinos. I got tired of losing at the casinos, and decided to try something else. Once I ventured outside the strip, I discovered there's more to Las Vegas than gambling. So I tired real estate. I did a flip, bought and sold several 4plexs. I found 4plexs the best type of property to invest due to best cashflow, appreciation, and lenders consider 4plexs same as SFR. Through trial and error, discovered the best areas for 4plexs.

Terry

Suggestions.

1. Put yourself in best situation for a loan. Pre-qualify yourself. Need to have 25% down and saved, need fico score 740 or higher, and W2 income. You can use the cashflow from rental agreements to help you qualify.

2. 4plexs are very low inventory. Maybe 50-60 (multi's) on any MLS search. Location is very important. See below map for area that is a bit higher than your price range. I ran the numbers and can net around $600-700 per month, with raising rents to market. No vacancies taken into consideration due to no issue with renting, more demand than vacancies.

3. see map below that is $360k in red, right behind MGM casino, off Maryland.

4. I know so much about this area because I own 4plex in complex.