All Forum Posts by: Zach Adams

Looking to purchase an owner-occupied Duplex in San Diego and plan on using an FHA loan. What's a good estimate % for closing costs so I can estimate my total costs to purchase?

Thanks

Zach

Looking to purchase an owner occupied in San Diego. Using an FHA loan and need an estimate for closing costs on a duplex. What's a good estimate for San Diego county? 5%? Thanks

Keith Nelson sounds like a good plan. Unfortunately I can't offer any suggestions for an agent but will say finding an investor-friendly or knowledgable agent can be a little challenging, especially in the SFH and especially when housing market is rising, as it is now. I just ask myself, if I'm an agent would I rather work with an investor who's looking for a discounted property with a business plan/mindset or the happy couple that can fall in love with a property and make an emotional decision? With you seeking an OO property to start, you can get in for very little down (3.5%) so your exposure is a lot less - do you need an investor-agent? Maybe just a regular old agent will work for your plan. And getting residential agents to understand NOI/cap rates/50% rule etc for 2-4 units is tough too. I've found myself doing quick calcs on income statements from agents with MFHs and where they're saying 20% returns, I'm seeing barely a 1.0 DSCR. Just some things to consider but best of luck!

Todd Whiddon ! What a great idea and wish I didn't live in California or if attend. Let us know if you want to do a live meeting on the Internet in the future. I'm down! By the ways, thanks for the help and estimates for my property off Powers Ferry a couple of months ago. Zach

Originally posted by @Lucero Sanchez:

Originally posted by @Zach Adams:

In addition to what everyone else is saying (i.e the IDEAL acronym), I'm looking to retire early and REI seems like the best vehicle. Everyone has different goals about financial independence, retirement, and supplemental income. I'm looking to create $3000-4000k/mon in CF within the next 3-4 years. I have a degree in chemical engineering and work "passively" in REI.

After working for 10 years in the corporate world, I learned the difference between a wage-slave and real wealth and have devoted my efforts to financial independence.  It's shocking that a majority of folks are wage-slaves.  A high paying W-2 really doesn't mean that much in terms of real wealth.  I read Jacob Lund Fisker's works on this topic and this shifted my perspective on money, lifestyle, and financial choices.  Next Rich Dad was the final nail in the coffin.  I'm now committed to minimizing my consumption and maximizing my savings to achieve independence.  Streamlining finances is a passion of mine.  

Back to REI, I've found this is my vehicle of choice. I'm not interested in building an empire or being a millionaire. I've trained myself so that if I were to have a significant increase in cash flow and net worth, I don't think there's much that would change in my life as far as spending habits. Funny, now that I have a good understanding and a financial education, I don't care to spend money.

 Here's to your wealth!

Zach

 I know what you mean, we are working on establishing a steady flow as well on free and clear rental properties of  at least $5k per month by the time we are 50 or hopefully sooner, we are not interested in wealth but if it comes than it's welcomed ;) but honestly we want to be able to sleep in! Lol. 

Question what are you doing now to be able to reach your goal with in the next 3 to 4 years?

 Lucero - 

I'm shooting for 4-5 SFHs and a multy-family/Apt complex.  I'm not looking to flip or anything like that, but am targeting a $30-35k/year in savings from W-2, taxes, and current CFs to put into RE.  Looking for a higher paying job to bump this number up too as well as ways to reduce living expenses.  Trying to be creative as I go!

How about yourself? sounds like the live in flip is working well for you?

Zach

In addition to what everyone else is saying (i.e the IDEAL acronym), I'm looking to retire early and REI seems like the best vehicle. Everyone has different goals about financial independence, retirement, and supplemental income. I'm looking to create $3000-4000k/mon in CF within the next 3-4 years. I have a degree in chemical engineering and work "passively" in REI.

After working for 10 years in the corporate world, I learned the difference between a wage-slave and real wealth and have devoted my efforts to financial independence.  It's shocking that a majority of folks are wage-slaves.  A high paying W-2 really doesn't mean that much in terms of real wealth.  I read Jacob Lund Fisker's works on this topic and this shifted my perspective on money, lifestyle, and financial choices.  Next Rich Dad was the final nail in the coffin.  I'm now committed to minimizing my consumption and maximizing my savings to achieve independence.  Streamlining finances is a passion of mine.  

Back to REI, I've found this is my vehicle of choice. I'm not interested in building an empire or being a millionaire. I've trained myself so that if I were to have a significant increase in cash flow and net worth, I don't think there's much that would change in my life as far as spending habits. Funny, now that I have a good understanding and a financial education, I don't care to spend money.

 Here's to your wealth!

Zach

Carrie Giordano just wondering, are you financing these properties or all cash? Good luck!

Samson Tse ask the seller to provide income statements for at least 3 years. What if they've differed maintenance to make OpEx look better?

Mike Huang I agree. OP should do a NPV calculation and determine optimal holding period. This can then be compared to an income producing property NPV and a better decision can be made.

@Rod Desinord

What are comparable CAP rates or GRM in the area? Sounds like a bad deal. I mean, if it's a war-zone, a CAP rate of 5.6% on the $160k price range would put the rent at ~$1500/mon. wowzers. What do you think it would really rent for?

Zach