All Forum Posts by: Yu Liu

I don't personally invest in the following but I've heard great things about Indianapolis and Cincinnati. I know some people crushing it with STRs in indy and a friend who is looking for multifamily in Cinci

Personally, I like the Florida market because I'm familiar with it

3 Votes

Any update with this? Did you proceed?

0 Votes

I was learning the VA Loan Entitlement process and wanted to verify if this is correct or if there's gaps in my research that someone can address and add onto:

From my understanding, if a VA wanted to get a second loan without selling their first home, this is the process:

And if my research is correct, I hope this helps out some of you :)

1. You find out what the existing purchase was and multiply by 25% (has to be over $144K)
1. Example: Home bought 2 years ago for $325K
2. Entitlement used/ Entitlement Gurantee = $325K * 25% = $81250
2. Find their leftover entitlement and see what county they are purchasing
1. Most county loan limit: $726K (conforming loan limit)
2. multiple that by 25% = 726K * 25% = $181,500
3. you subtract that from the entitlement used:
  1. $181,500 - $81,250 = $100,250
3. You can get the rest of their entitlement by multiplying it by 4
1. $100,250 * 4 = $401,000
2. They can buy a house up to $401K and still use 100% of VA entitlements
Bonus: If they want to buy a more expensive home, they have to put 25% down on the difference of the home and the entitlement
1. Example: Seller wants to buy a $601,000 house
2. $601,000 - $401,000 = $200,000 (difference)
3. Down payment = $200,000 * 25% = $50K
4. % down on home = $50K/ $600K = 8.3% down payment

1 Vote

Mine are in Tallahassee, FL and Fall is our high season due to Football season. Not doing crazy gross yearly amounts as some of you but for Fall, netting over $2-$3K for each of my STRs during the "airbnbust year" is pretty good!

2 Votes

What Chris said. Ask someone (private money lender or private money partner) to help you with this deal. Show that the deal performs and address any objections they may have to trust that they can get their money back and more!

1 Vote

I would say it depends on how well you know these "friends" and your judgement on their financial literacy and responsibleness. I would not mind doing a subto to a friend I trust with good judgement.

Typically from what I've seen, if someone is paying $80K or so to take over your mortgage, they WILL 99% PAY. Because what happens when they dont? You get to take back your property and keep the $80K (INCLUDE THAT IN THE CONTRACT), so in that situation, it is all yours to gain.

Structure wise, whatever makes sense for you and the friend in question. If you need that 80K then those would be your terms and non-negotiables.

0 Votes

Quote from @Pradyumna Dhakal:

Quote from @Yu Liu:

some people buy multifamily and since they're buying 5, 10, 50 units at a time, the economies of scale comes into play.

sounds like you might be in that position, so maybe research more commercial multifamily or commercial real estate such as mobile home parks etc

Thanks for the response, @Yu Liu. I like the idea of multi-family and the economies of scale that come with them. More on the cons of multi-family, they probably would not appreciate as fast as single family, needing to hire property managers etc. but if they cash flow more than single family, that would justify the slower appreciation

You don't look at commercial multifamily the same way in terms of appreciation as a residential property. It's based off NOI and cap rates. If you can increase the value of the NOI (the rents) then you can force the appreciation just based off that. There's a lot of resources out there: https://www.biggerpockets.com/blog/multifamily-deal-analysis here's a good article about it

0 Votes

Dallas, Texas

Quote from @Ariella Danya:

Quote from @Michael Alexander:

Hello Yu, I would be interested in a conversation if this is still available.

Michael Alexander is actually Michael Melendez. He is a known scammer (google him) do not do business with this man or you will end up regretting it! He was on bigger pockets before as Michael Melendez with My House Services and numerous people posted about how Michael scammed them out of so much money! Please be careful!

thanks for sharing!

0 Votes

Tallahassee, Florida

very cool! How did you build this? Would love to try it and see how it works!

0 Votes

Quote from @Jacob St. Martin:

This is kind of a tricky question to give a blanket answer to. The thing that makes seller financing so great is that the terms are negotiable. The terms that I would offer are the terms that make everyone the most happy. Is the seller someone who owns a bunch of properties free and clear and is in their 70s and sick of managing them but wants passive income for the rest of their life? I would negotiate a lower down payment, purchase price, or interest rate (depending on what is important to the buyer) but with no option to sell or refinance for a given period to guarantee the income that the seller wants. Does the buyer want to do 0% down seller financing? Well then the seller might want a higher interest rate or purchase price. Does the seller want their capital returned in a couple years, add a balloon payment. Does the seller want the highest possible sale price and the money right away? Then they shouldn't be doing seller financing! I personally am typically interested in seller financing because I am looking for low money down solutions and my DTI is really high so I would be willing to pay more and with a higher interest rate to get the low money down component but this will really depend on your buyer and seller.

I hope this is helpful! Sorry that there isn't a clear, one size fits all solution

Great response Jacob, have you done a Seller finance deal before, I would love to connect and learn more

0 Votes

All Forum Posts by: Yu Liu

Yu Liu has started 11 posts and replied 249 times.

Post: Top location for long distance investing?

Post: Using Sub 2 for primary residence

Post: VA Loan Entitlement on Second Home Process

Post: Now that fall is arriving, how are bookings looking in your market?

Post: Subto with 2nd position lender ??

Post: Selling primary home subject-to

Post: First Post and Seeking Advice on Scaling

Post: Owner of a townhouse looking for Airbnb Arbitrage tenant.

Post: STR Performance Dashboard

Post: Owner Financing Terms?