All Forum Posts by: Varun Parkash

If you have the bandwidth - patience - hustle and hunger to search for deals and can spend many hours managing it locally - then definitely you can find better cash flowing deals - fix and flip and many other options - but ultimately you need to decide on how much effort you are willing to put into it and the kind of tenant profile you want to deal with.

Interesting discussions

Originally posted by @Ilan Levy-Lambert:

@Varun Parkash: There are several markets with good neighborhoods where you can buy a 150 to 300 K SFR property with a 5 to 6% COC return in an all cash-deal.

 Haha all cash-deal, well i don't have 150 or 300k cash lying around me, that's why i am playing it traditional through mortgages

Originally posted by @Cara Lonsdale:

Get that in writing for sure!  

 Nope on email, they are saying $1300 is non-refundable if i don't go ahead with them later (if the rates dropped below 3.875 next year), also they are not covering any fee costs if closing is delayed. I am checking with builder if they will. If builder said no, then it ultimately is my risk, but i still want to understand - how much can bank charge me if closing is delayed by lets say 2 months (worst case scenario). My rate lock will expire in early june

Originally posted by @Cara Lonsdale:

How confident are you that the new build will be done within the 6 month time frame?  I would hate for your lock to expire just before completion....especially if there are any delays, which there always are.  That's when it would get expensive.

 I agree - the bank guy on phone said the builder will pay for any delay as per purchase agreement, but i dont believe in phone promises, and have emailed him to confirm.

Originally posted by @Cara Lonsdale:

That seems like a pretty good rate.  Considering that locks are usually 30 days - 45 max.  This seems like a cheap lock extension to get it for 6 months.

Why will your purchase take 6 months to complete?  Just curious.  

 Its a new property getting built by the builder - so that's why. Bank just offered $1300 credit at closing, so practically now i am getting this rate locked in for free.  Only catch is i need to pay them this $1300 (refundable) + appraisal fee (non refundable fee) now. 

Hi Guys, one of the banks is charging $1300 fee to do a 6-month rate lock-in at 3.875% interest rate - fixed 30 years.

Would you advice paying for it or taking the risk and wait till summers next year to not pay this fee and get the same or lower rates in Summer 2018?

Originally posted by @James Park:

Experts think Amazon's HQ2 is most likely to land in Atlanta, Inc. says.

 Haha, we sure hope so James :-)

Thanks jay and Andrew - agreed that it’s not a smoking hot good deal - which will make me thousands in profits. My 1st gamble of buying and holding in Irvine, CA - has been negatively cash-flowing - in which I jumped in 2 years ago without many calculations or ROI or 6% sale costs considerations etc. Today I can break even on it if I sell inclusive of all costs, but I don’t want to. I have a thick skin & unlike many millenials- bitcoin or quick money making stressful investment schemes including stocks (without solid research - analysis & a guide or mentor) hasn’t really been my thing.

Thanks Alex, appreciate your calculations, I found out that at 2% appreciation every year, after 5th year and after taking out the 6% sales costs as well as the 5k closing costs paid now (doing 1031 exchange) = the profit comes out to be 35K*. [Please note that my numbers include * Property value minus net cash expenditures and sales costs + initially paid closing costs] In worst case scenario of 1% appreciation every year, the 5th year shows profit of 20K* It’s important to consider all perspectives and considering it’s an area on the high, I’m hoping for the best and appreciate all your experienced opinions :) Cheers !