All Forum Posts by: Tobey Grey

@Arlen Chou Appreciate that, I keep hearing banks are being very conservative but I guess I was hoping that CA might be more exempt with so much WFH tech money and high rental prices but that wasn't well researched. I have a few months before potential losses may arise, right now we're stable but was hoping to make a move before that was noticeable. Do you think I might have more luck with one product over the over if I decide to give it a shot?

@Blake Dailey Thanks thats very helpful! DSCR is new to me, I did some reading and am wondering if any of this is relaxed if you occupy the property (since I'd be living in the rear unit)? Or if I stayed in the main house and took on roommates? That makes sense that Refi and HELOC combo with fees wouldn't be a benefit despite possible interest savings. I think I might between a rock and a hard place since if I wait to stabilize the property the softened market I'm hoping for may have come and gone.

I have a 80% LTV on a conventional loan at 3.85%. I'm wondering if it's possible to take advantage of lower rates and do a HELOC at the same time? Is this newbie thinking? I'd like to avoid double appraisal fees, and I have a small business that will show a significant income drop during the pandemic so I feel like I'm more likely to secure a loan with my current situation on paper than If I wait.

My goals are to finish the rehab and get tenants, and to create some access to cash for options in the future. I'd love to get a second property and am hoping that the market will soften though doubtful it will fall far as I'm in the Bay Area. As my small business will take a hit over the next year I would like to create more security with rental income. Any advice is greatly appreciated!

Newish to Real Estate, purchased my first property about 1.5 years ago and have been rehabbing slowly. I was hoping to leverage it in the next few years. My small business has taken a hit in the pandemic and I am now considering prioritizing rental income to create more security. I am in the Bay Area and I don't anticipate struggling to find renters. I have a 3 bdrm SFH fixer and a studio apartment I'm finishing in the back. I have the 40k needed to finish both in which case I could move into the studio for now and would profit about $400 a month on renting the house. This feels more secure long term in cutting down monthly mortgage costs, but risky in that I'd be using the majority of my cash reserves. Possibly I could refi or HELOC to create a reserve and give me an option for another property if the prices soften? Or is this naive thinking/I'm missing something?

I will note this might be difficult but it is possible I got my first distressed property last year with a conventional loan and less than 20% down. Its possible with the right lender, but who knows how the market will turn with COVID so hard to say what will be possible now.

@Lindsay Ferlin I bought in Eastmont! I would recommend visiting your location all times of day to get a feel for the neighborhood. I was lucky enough to find something on a quiet street with all the homes in good shape *except the one I purchased ;)

I'm working on rehabbing my first buy and hold property, a SFH home with a 2 car garage I plan to eventually turn into a studio once the house is done and rented. I am trying to act as my own General Contractor and while I'm saving money this route, it's taking much longer than I anticipated. I would like to calculate the tipping point for when money saved is less than the loss of rental income due to time creep.

I'm struggling to find a calculator that accounts for the lost rental income by month during the initial rehab. Any suggestions for how to calculate this with the Bigger Pockets calculator, or a separate tool?

Irregardless of the law, tenants can easily skirt this because it's difficult to prove a dog is a pit bull. The term "pit bull" actually does not denote a specific breed- there are many categories: APBT, Staffordshire, American Staffordshire, American Bulldog, Bull Terrier, ect. You can ask if the dog is required for a disability but that is all. You cannot legally ask the dog to perform a trained skill or ask about the nature of the person's disability. For an ESA Emotional Support Animal) no formal training is required as these dogs are not allowed public access (they cannot go into stores) but they are allowed housing rights (living in units that are not typically open to pets). 

From what I've seen in the areas you're looking there isn't much available that's already setup as a multi unit where the numbers will work. If you're willing to flex on location a little there's quite a few options zoned correctly where you can convert the garage or add an ADU. I also wanted to be in the areas you described and looked for 3 years. Someone advised me to expand my search area and I'm glad I did.

East Oakland is currently working on the the Rapid Transit line which should bring eventual growth to the area. For $389k I bought a 1200 sq. ft 2 bedroom in the area (that can easily be converted to a 3 bdrm) with a  standalone 2 car garage I will convert. When the project is finished it will either work as a house hack or I can rent out both and it will cash flow. I didn't have to deal with inherited tenants and I can set rent to current market rate. I was able to do a conventional loan with 10% down. I was surprised at how easily I found financing by saving just a little more down, working with an agent who specialized in class B & C properties, and shopping around.

You will want to look into zoning for the area you buy in ahead of time, but currently things seem relaxed due to the housing shortage. Of course all this assumes you're willing to do the leg work and deal with construction projects. But for the total cost you're looking to spend you could shift areas, buy something for less, funnel the difference into rehabbing, and come out much more on top long term.

@Paul Choi Thanks! This has been a big step for me I've been saving for quite a while and it's exciting and simultaneously terrifying to be making moves!

@Arlen Chou Fortunately I am not needing to move any walls, the unit is very easily split into two units by just walling over one doorway. I will then need to add a kitchenette to the second unit and a bath. This leaves one 2/1 and a small 1/1 studio. Agreed I will need quite a bit of footwork to cover all my bases. I do have some concerns if I make a mistake in my proposal I may be denied and then will be without option. Any idea if this is true or if I can re apply? 

@Katie P. Can I have a 2/1 in the main house, a rear mother in law studio, and an ADU? Or is a home with two units just a duplex no matter how small the second one is or if it contains appliances? I was hoping to use this In Law as a short term rental as there is a college and stadium nearby.

Any idea how I can calculate exact Impact fees? Would I pay impact fees for a short term rental?

Thanks all!