All Forum Posts by: Benjie DeVera

This is a long thread. But I want to ask: if we are under forbearance, the interests continue to accumulate throughout those months, right? It's not like it stopped accruing interests - so either way, those interests will still have to be paid? 

What am I missing?

I'm in the market for $2.5 M to $3.5 M range for MFR's in TX area. Any commercial Brokers in the Houston / Austin / Dallas here who can assist me with purchasing an MFR in the area? Please message me!

It is important you pick an Agent that you trust, and that your Agent can work well with the Listing Agent.  Good luck!

@Marichelle Lao One of my business partners chose to go with Robert Hall and Associates in Glendale. You can Google them. Specifically, he went with them because he wanted to talk to a CPA who has knowledge of doing a 1031 exchange and he's transitioning into commercial deals. Of course, their service fees might be a little bit higher than others. They also have networking meetups once a month or so, and they go over tax strategies for real estate investors. 

@Trish Elle If you're using an FHA loan, then you're limited to buying a unit, in which the condo complex is FHA approved. If the complex is not FHA approved, then you can not use an FHA loan.

I don't know all the criteria in which the FHA approves a complex. In one of my condo rentals that I own, the complex recently became "FHA approved" complex. From what I hear from HOA, it's because the complex now have "sufficient reserves" to qualify. This is good news for homeowners who are selling, because there will be more potential buyers who will qualify in this complex, as opposed to only conventional buyers before.

The "development and revival of the neighborhood..." etc is news to me. I would think that's a speculation, just as any investor "predicts" that the area is the next upcoming neighborhood.

@Cerwin Haynes how bad is her credit, and how long will it realistically take for her to fix it? If you're talking months, then wait. If it's years, I'd go with Cuse.

I've lived in LA and I only invest in LA county which is expensive in comparison to other parts of the country. I, along with many others, pick LA because of appreciation as opposed to cash flow. People like me don't need the $200-300 extra per month on an out of state investment since that doesn't change our lifestyles much. I like to think of it as a delayed gratification, for a bigger equity down the line.

@Zachary Myers Can you add me on your buyer's list? I'm in the LA area

@Trish Elle: Know how much you can afford. LA is expensive in comparison to the rest of the country. Most people who invest in LA speculates on appreciation, as oppose to cash flow. If the "appreciation play" is what your strategy is, then LA is a good place to invest. But if it's cashflow, look elsewhere.

For taxes, factor in 1.25% of the purchase price in LA county. Insurance for a condo (depending on size, and the company you're using) will probably cost around $350/year. You would also add HOA monthly if your condo has dues for swimming pool, security, and other landscaping in the complex.

Hope this helps! Let me know if there are any other specific questions you have.

I was wondering if anyone can advise me whether or not I will need an architect. I have a project in Glendale, CA in which I am hoping to add square footage and a full bathroom. Given that it's in Glendale, I've only heard that they are strict. 

To save some money, I was thinking of having the owner-build permit. If I do, will the City Planning Department be asking me for drawings and blueprints (which I cannot produce)?? 

Am I better off to hire an architect and have them draft the drawings, and then have a very good, experienced handyman/build (without license) to execute the projects and drawings? I can be at the property to manage and be present as inspections are needed.

Or does anyone have any other thoughts on how to save $$ than hiring a General Contractor (GC) who are usually expensive (up to 4 times more than an unlicensed contractor)?

Any tips on this renovation subject is greatly appreciated! Thanks!

Benjie

@gerhard A lot of investors start with "house hacking" just like what you're planning to do. You're very likely to move to another duty station after a few years right? If so, consider the re-sale value of the home, if you decide not to hold it as a rental. If you will keep it as a rental, try to buy a place in a decent neighborhood where your future tenants will be stable, and not  move around every one or 2 years. You don't want a high turnover rate  on tenants if you'll be gone elsewhere. Good luck!