Kevin Whitlatch this was in 2012 in Orange County, CA. It broke even with 2 units, and cost me $10k to evict 2 tenants fix a few things and rehab a studio to cashflow. I took more time rehabbing the 4 bedroom, but that one was a mess. One eviction took 3 months and was a single guy renting a bedroom in the 4 bedroom unit. Seriously nasty individual on the hygiene side of life.
Back in 2008, 2009, 2010, there was a lot of talk about picking up deals, but there were double digit drops in the market even after that. I picked up my first distressed deal in NorCal in 2011. People there were perplexed and asked me why I’d be investing in real estate when the market was so depressed-I just smiled inside and said “Exactly!” In hindsight, in Sac County, 2011-2012 was prime buying time. Prices spiked immediately afterwards. Moral of the story is don’t be so quick to jump in and wait until investor sentiment is completely depressed. We’re not there yet.
Which city, town, or unincorporated area did you buy in? Perhaps most importantly, is it in a good school district? I know Roseville, Rocklin, Folsom (esp. Folsom High), Fair Oaks (Bella Vista), Carmichael (Mira Loma), and Arden Arcade are best. Areas with good schools appreciate quickest, have lowest crime, and have best public services (excluding public transport).
Very true Nick! I should have totally brought up the idea that most often rents are higher due to the HOA dues. It's almost as if the tenants pay a lot of it.
Meet Kevin I think that’s interesting because we don’t see that here in Baltimore. We’ve actually been seeing a lot of places raising there dues to astronomical amounts because of foreclosures.
@@Thad7507 Hopefully with the mayor going out the new mayor will be focusing on the crimes. I have been looking to invest in Bmore but its been a debate
Best video. I remember watching this years ago and planning on buying a place someday. I’m now I’m the process of finding a place. I’m ready. Thanks Kevin for all the advice.
@@MeetKevin Wait, if it's possible for an HOA to deny you the right to rent, then what if they say it's OK before you purchase it then change their policy after you move out? That seems risky!
They can and could yeah - that would be scary. Best to find a well established HOA with a history of allowing rentals - I have a free preview video on how to qualify HOAs on my course page: checkout the link and watch that one for free, you’ll like it
I am located in Romania and i find many of your ideas perfectly applicable here as well and I already rented a two rooms apartment (here we have a different representation) that generates me around 5% yearly ROI after taxes and maintenance costs.
Been watching your stuff the past few weeks and 3:15 nailed it. That was the first property I bought: a condo. $45k at 24 years old. HOA handled the outside responsibilities and it made my start in real estate much less head ache. Now on to buy another this year.
In case you’re wondering about why the focus is off; your front camera’s auto focus is switching from you to your Mac’s “subscribe” display screen. Might be better to buy a subscribe plaque.
My first property? A 4 unit. You can mortgage it as an owner occupied property and in most markets 3 rental units should easily enable you to live in the 4th unit for free. Not paying your own mortgage or rent would typically free up about a third of your job income to buy the next property.
Gosh! I wish I had known this 25 years ago!!! I was fed some faulty fearful ideas by my own mother (fear of not being able to maintain my mortgage payment and had to lose the property), and am forever kicking myself of not buying my college buddy's condo back in the late 90's (one of the lowest RE market times!) I lost my chance and haven't been able to even remotely afford anything after that as housing prices have been rising and rising, and there is no stopping of the raise in sight.
Never take advice from people who are not living the lifestyle you want. My parents give terrible advice and I dont want their lifestyle. They are losers in my eyes and I always ignore every piece of advice they give me.
I live in New Zealand and I looked at buying what is essentially a condo, the banks only lend 60-80% on them. And ideal first step for a person like me that would be cheaper than renting, and the banks make it so that I'm only allowed to buy a bank without putting down way more money than I'd want to.
Second! also my first investment property was a flip big mistake cuz I didn’t know much about houses and the contractors screwed me over but I learned a lot from the experience
Hi Kevin, is it hard to get second or third loan without paying off your first condo? how does it work if it is not paid off to start spinning to the next one?
@@notorious1460 You go to a bank and show them how much you earned from a rent of the condo. Usually it is ok in case it covers the payment. I'm not from US so not sure if you get the same deal as for the first one. Where I live it considers as an investment real estate and they ask 40% down payment.
i appreciate this information because I am a 1st time investment property buyer! and i completely understand your POV. however, i’m not scared of a challenge and i want a multi family unit 😅 i’ve been researching them a lot and right now in the process of saving for a down payment also raising my credit score so I can also apply for a business credit line to use as my property emergency fund! i’ll make sure i have everything right before i dive in with it, but trust me i want to dive into multi family! the reason being is the immediate multiple unit cash flow you really can’t beat that! plus I live in the midwest where everything is cheaper. plus i’m not going to buy one that’s super old. but i haven’t decided yet on how many units yet.. i don’t have everything figured out yet honestly. but i’m 28 and i need to make it happen asap.
I actually took action and chose to get a brand new studio condo w/o watching this. GREAT to know that I am playing the field correctly!! 21 years old btw
What's up dude ! I'm also 21 saving up for a down payment right now ! (Thinking about getting something at the end of the year) If you want to we can get in touch and share our experiences.
Great content. The caveat is that this is the strategy for high-cost housing areas like on the coasts, right? Best first purchase in lower cost housing areas might well be a single-family home or even a duplex/multiplex where you live in one of the units.
Slightly down on myself right now after watching your videos and finding your channel. I have sold two house, and made decent money. However, if I have simply done a cash out refi when I moved from both houses, I'd be looking at still having $100k in combined equity, $500/mo in principled down payments, and about $100k in savings to be used to purchase a third home. Instead, I am buying the third home, have no rental properties, and only have $30k in cash to use towards that down payment. I am just angry at myself for these poor financial decisions. But I have seen the light, and I am hoping I can get in the game. Better late than never, but man $100k in equity, $500/mo in principle pay down, and who knows what kind of cash flow, and it is a little devastating to think about.
Hey Kevin random question for you. Now that I've launched my course and I have a lot of income coming in I know I can write off mileage and maintenance on my vehicle but if I use it like you do or our other friends that use it in the background like a Lamborghini can we write off the payment as marketing or props? is that why everyone puts their vehicle behind them in their videos? Sorry I know you're not an accountant and I don't take it as legal advice so I completely understand. I don't want to lease and I know I can take the right off that way... It's a BMW i8
Great supplement to section 5 from your Investment Course Scrapped and re-invented my game-plan! *Btw looking forward to purchasing your Financial Course as well around February! Truly amazing quality content Kevin, Humbled to have found you when you first appeared on Graham’s yt
Kevin, would you sell your condo if you are currently experiencing negative cashflow of about 100-200 dollars due to a 7.5% pm fee and property management also takes out one months rent per every new tenant contract? What are my options other than selling, being my own property manager? Should I find a cheaper PM company or is that tenant contract fee a normal thing?
With all due respect, HOA's and Home owner dues blow major oats, for lack of a better word. They are constantly, increasing association fees and playing neighborhood politics? And then the fines or warning letters for violations of HOA rules? petty rules ..Nah, I went a different route. I bought a fee simple 3/2 single family residential with 3G down and $30G built in equity with zero repairs and finacial headaches.( That's why Home/Building Inspectors make the big bucks) and they're worth their weight in gold to me so far. East Coast is sooo much more affordable than WEst Coast LOL..TFS
To Find estimated market value of a duplex, do you make an offer based on comps or based on cap rate? Some say residential (4 units or less) prices are based on comps and commercial is based on cap rate and income.
Kevin - Have you done a video on buying your 2nd property and dealing with the DTI ratio problem if your "day job" income doesn't make sense to the bank? I have 100k equity in my home that I can take a HELOC on, but DTI is keeping me from buying anything worth having. I realize eventually the bank will give you 75% of rents, but not so for new landlords.
Kevin I know your a fan of grant as well what do you think of starting off buying a 4 unit building still being residential and renting it out and starting off that way or would you condo technique be better? Thanks kevin
But if I am familiar w/maintenance & repairs, through owning several RVs & a boat, that I've maintained & fixed myself, it would be just as easy 4 me 2 buy a small house as it would be 4 me 2 own a condo, w/their homeowners' association fees? I have also co-owned a condo & could have done most of the upgrades they did there.
Omg i was just thinking my only hope is buying a old condo. This means im on the right track. Good stuff man. Im single and i have 20 exp. In construction. But i think its going trickie finding a fixer condo.
Hey Kevin, I'm an agent from Kansas City MO. I just wanted to say you totally earned my "LIKE"! A 3 piece suit for UA-cam and Like Subscribe in background 😂😂👏👏
Negative. Just do your numbers upfront though: I find a lot of rents are higher because properties have association dues and provide amenities to the tenants compared to similar properties without dues.
Great video Kevin! I find myself in this same situation. I have a 1 bed 1.5 bath condo that is FHA approved. Recently thinking of buying a 3 bed 2.5 bath. Thank you for the knowledge I find this tailored to myself.
Work while in college. You will never have so much free time. Looking back... college was easy as fuck and you can LEVERAGE SO MANY CONNECTIONS. Meet all the business owners / people that teach classes for fun. Get a legit degree too. IT, Accounting, Healthcare, etc. Look up job data... it's good to have a fall back. But yeah if you work hard you can be rich in college. You'll never have free time and access to such quality cheap labor again
Hey kev, can I get an eloc now that my hamp property has equity? I liked that idea you had in a previous video, about how using till market goes south. I'm not that sure about the terms of the hamp program
3:11 seconds go by without a hint of what the first property should be... then, finally, "you're going to start by doing this... you're going to buy... a... *cuts to ad*... CONDO".
Would you recommend buying Co-ops and making it a "be all end all for now" type of purchase even though they can't be utilized such as Condos? I live in NYC, and Coops are vastly more affordable than condos. Of course I would love to own a condo for REI reasons, but the difference of saving a down payment and suffering a high mortgage rate seems to not really balance out in most of my situations. I was thinking of living in a Coop, saving money there then perhaps sell my coop and start this process as you've explained in this video.
I hope while, I am saving up for buying my first rental property, the prices will go down and then I get a good deal. Do Condos not have a high fluctuate rate? That would be a big off turner.
Don't worry, the property will definitely crash. It crashes about every 10 years. We're just over 11 years after mid 2008, so expect it to crash anytime soon. However, prepare to wait until 2023, as the longest record between recessions was 15 years before 1973. Add Brexit to being overdue. It seems like the Feds purposely crash the market every 10 years or so so that their banks can rob money from owners of foreclosed homes.
Hi Kevin, I am currently into real estate in the UK markets. You talked about getting a property that's ideally FHA approved and VA approved. What is the alternative/name for the UK market? Also how long do you recommend taking the mortgage term for? Thank you.
How much trouble can someone get into if they say that its going to be "owner occupied" but really you're planning on using it as an investment property? I've always wondered how people can put down less than the required down payment for an investment property and still rent out the place.
Question: What if I already own this condo (paid off), but it needs all these repairs? I'm not living there currently. Can I make these repairs & updates, then use it for my first rental property, with little risk?
What about if I already own a house and want an investment property? Now I won’t qualify for an FHA loan at 3%, I have to get an investment property loan that requires 30% down payment. Plus I live in the Bay Area where housing is just stupid expensive. I’m looking to invest 1-2hrs away from the Bay to be more cost effective. Any advice on how to get a loan for less than 30% down payment?
Kevin's advice or a FHA & VA approved duplex, triplex or quadplex that either cash flows or is at the very least costing you less than renting would with you living there accounting for vacancies, repairs, principle, interest & taxes. You are NOT the owner. ;)
Hi Kevin, first off, really enjoying your channel. Very informative and clear, so thank you for that. I've got a few questions I'm hoping you can answer for me. 1. This video was published on August 5th 2018. Today is March 1st 2019, do you still feel the same way about condos as a first purchase? 2. Is there a condo or strata fee that is simply too high, and enough for you to walk away from cause of a certain number? 3. I live in Canada, can the strategies you provide work here as well? 4. I live in Lower Mainland BC where real estate prices are through the roof, however I'm from Manitoba where real estate is still super affordable. If the pricing is better would you recommend buying in a province where I don't live? Or do I spend more and earn less to buy in province that I live in? It would be my first purchase. Sorry for all the questions, I hope you're able to respond, thanks!
1. yes watch this ua-cam.com/video/Xnkud6apyCQ/v-deo.html 2. No 3. Same as US; student rentals can be big in some college downs but generally the same as US 4. Buy local
Okay so I get the condo thing,so your saying get like a semi fixer upper so you don't overpay but you don't mention how or a strategy to fix it up do you have to make sure you have excess cash for this?What if your not handy?
Hey Kevin, been following you for awhile now. Wanted your advice on how to get a leg in. I currently own my second home ( first was a condo that I made 40k on). I’m 35 married, wife just quit working so cash savings has significantly decreased. Currently have about 60k equity in my home (300k value, owe 240k).Since I have only about 6k saved up in my real estate fund, should I move out to a rental and rent my existing home to get started or should I keep saving and buy a 100k condo after saving 30k. I’m in southeast MI market and my house is a 3b/3bth split level with 2100 sq ft plus semi finished basement.
I’m in this situation now. I want to purchase a single family because my family expanded and rent my 2 bedroom condo I purchased when I was single that I’m still living in.The value went down and I’m wondering if it’s because an investor is buying the condo units up and renting them to section 8. He owns six of the 12 units in my building alone.
9 buildings each has 12-18 units so around 140+/-. I purchased in 2010 for $100k with 5k Equity now I think they’re going for around 78-89k. Zillow’s zestimate says 135k (which I doubt). The guy is buying the units for around $65-70k from short sales/foreclosure.
Possibly more rare, but wouldn’t say rare. Condos are less likely to have big wedges but there are a lot of single families in HOAs that can be quite distressed
Out of curiosity, how do you feel about HOAs restricting who you use for utilities? I recently was going to change and was told we're forced to use only ove option...
17 people don't like high quality, well presented, free accurate information
Indeed
Or maybe the "ahyuuk hyuk golly" schtick grinds on the nerves
40
@@polish2x91 oh is that ur excuse for getting free info that could change ur life??? Nahhhh, his attitude sucks, screw this HQ information, eff it!!
@@hersheyskwertz9315 still 40
Coming back to see old school Kevin!
I would never want to own a condo. My first was a 4 unit with a 3.5% down FHA. It cash flowed with only 3 tenants, best decision ever!
That’s an amazing deal! If you can get in like that, hundred percent do it
Meet Kevin OC in 2011, everything was an amazing deal. I had to evict the tweekers and prostitutes, but that makes for great stories at parties.
Best cocktail story ever! Yeah, it’s tough comparing the market now to rock bottom. What a great time 2011 was!
@@HomesteadOC if you dont mind me asking what state was this and how much did you have to put in to the units before seeing cashflow?
Kevin Whitlatch this was in 2012 in Orange County, CA. It broke even with 2 units, and cost me $10k to evict 2 tenants fix a few things and rehab a studio to cashflow. I took more time rehabbing the 4 bedroom, but that one was a mess. One eviction took 3 months and was a single guy renting a bedroom in the 4 bedroom unit. Seriously nasty individual on the hygiene side of life.
Back in 2008, 2009, 2010, there was a lot of talk about picking up deals, but there were double digit drops in the market even after that. I picked up my first distressed deal in NorCal in 2011. People there were perplexed and asked me why I’d be investing in real estate when the market was so depressed-I just smiled inside and said “Exactly!” In hindsight, in Sac County, 2011-2012 was prime buying time. Prices spiked immediately afterwards. Moral of the story is don’t be so quick to jump in and wait until investor sentiment is completely depressed. We’re not there yet.
Very true. There’s definitely room for this market to evolve, especially with the latest data
Which city, town, or unincorporated area did you buy in? Perhaps most importantly, is it in a good school district? I know Roseville, Rocklin, Folsom (esp. Folsom High), Fair Oaks (Bella Vista), Carmichael (Mira Loma), and Arden Arcade are best. Areas with good schools appreciate quickest, have lowest crime, and have best public services (excluding public transport).
are we there yet
My only thing is the condo fees and HOA can eat your profit margin.
Very true Nick! I should have totally brought up the idea that most often rents are higher due to the HOA dues. It's almost as if the tenants pay a lot of it.
Meet Kevin I think that’s interesting because we don’t see that here in Baltimore. We’ve actually been seeing a lot of places raising there dues to astronomical amounts because of foreclosures.
Wow! That’s a bigger question: why are you guys seeing a lot of foreclosures
@@Thad7507 crime neighborhood??
@@Thad7507 Hopefully with the mayor going out the new mayor will be focusing on the crimes. I have been looking to invest in Bmore but its been a debate
Best video. I remember watching this years ago and planning on buying a place someday. I’m now I’m the process of finding a place. I’m ready. Thanks Kevin for all the advice.
Gotta make sure HOA allows you to rent out property too...loving the advice, investing to slowly becoming achievable...
very very true!!
@@MeetKevin Wait, if it's possible for an HOA to deny you the right to rent, then what if they say it's OK before you purchase it then change their policy after you move out? That seems risky!
They can and could yeah - that would be scary. Best to find a well established HOA with a history of allowing rentals - I have a free preview video on how to qualify HOAs on my course page: checkout the link and watch that one for free, you’ll like it
That's a BIG BIG factor!
K:i:n:d:l:y :te:x:t:+1:2:2:5: 7:2:6:6:4:1:2: W:h:a:t:s:A:p:p:....
"Who do you know, whom do you know that bought a property 30 years ago and is upset at the value of that property?"
All of Detroit: :|
LOL
Meet Kevin got you there, Kevin.
I am located in Romania and i find many of your ideas perfectly applicable here as well and I already rented a two rooms apartment (here we have a different representation) that generates me around 5% yearly ROI after taxes and maintenance costs.
Super! Succes!
5% roi. How much Down payment
Every words you contribute to video content is absolutely true and honest.
Learned more in this video about real estate than I did from all my years in school. Great info!
Been watching your stuff the past few weeks and 3:15 nailed it. That was the first property I bought: a condo. $45k at 24 years old. HOA handled the outside responsibilities and it made my start in real estate much less head ache. Now on to buy another this year.
$45k!? I wish :((
In case you’re wondering about why the focus is off; your front camera’s auto focus is switching from you to your Mac’s “subscribe” display screen. Might be better to buy a subscribe plaque.
I noticed that! Yeah, I am going to disable auto focus on that camera. Hope it wasn’t too distracting!!
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My first property? A 4 unit. You can mortgage it as an owner occupied property and in most markets 3 rental units should easily enable you to live in the 4th unit for free. Not paying your own mortgage or rent would typically free up about a third of your job income to buy the next property.
K:i:n:d:l:y :te:x:t:+1:2:2:5: 7:2:6:6:4:1:2: W:h:a:t:s:A:p:p:
Gosh! I wish I had known this 25 years ago!!!
I was fed some faulty fearful ideas by my own mother (fear of not being able to maintain my mortgage payment and had to lose the property), and am forever kicking myself of not buying my college buddy's condo back in the late 90's (one of the lowest RE market times!)
I lost my chance and haven't been able to even remotely afford anything after that as housing prices have been rising and rising, and there is no stopping of the raise in sight.
Never take advice from people who are not living the lifestyle you want. My parents give terrible advice and I dont want their lifestyle. They are losers in my eyes and I always ignore every piece of advice they give me.
I live in New Zealand and I looked at buying what is essentially a condo, the banks only lend 60-80% on them. And ideal first step for a person like me that would be cheaper than renting, and the banks make it so that I'm only allowed to buy a bank without putting down way more money than I'd want to.
Second! also my first investment property was a flip big mistake cuz I didn’t know much about houses and the contractors screwed me over but I learned a lot from the experience
Definitely a major learning experience to go through that!
Hi Kevin, is it hard to get second or third loan without paying off your first condo? how does it work if it is not paid off to start spinning to the next one?
Nope -- just use projected rental income for your NEXT or your current
Meet Kevin what do you mean Kevin rental income ?
@@notorious1460 You go to a bank and show them how much you earned from a rent of the condo. Usually it is ok in case it covers the payment. I'm not from US so not sure if you get the same deal as for the first one. Where I live it considers as an investment real estate and they ask 40% down payment.
This solidifies my decision to buy a condo, it’s the cheapest best location property i can find in my area.
Watching this in 2020! would love for an update video if anything has changed.
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i appreciate this information because I am a 1st time investment property buyer! and i completely understand your POV. however, i’m not scared of a challenge and i want a multi family unit 😅 i’ve been researching them a lot and right now in the process of saving for a down payment also raising my credit score so I can also apply for a business credit line to use as my property emergency fund! i’ll make sure i have everything right before i dive in with it, but trust me i want to dive into multi family! the reason being is the immediate multiple unit cash flow you really can’t beat that! plus I live in the midwest where everything is cheaper. plus i’m not going to buy one that’s super old. but i haven’t decided yet on how many units yet.. i don’t have everything figured out yet honestly. but i’m 28 and i need to make it happen asap.
Kevin your videos are great and well informed 👏
Really stepped up your production quality, keep up the quality content !
I actually took action and chose to get a brand new studio condo w/o watching this. GREAT to know that I am playing the field correctly!! 21 years old btw
What's up dude !
I'm also 21 saving up for a down payment right now ! (Thinking about getting something at the end of the year)
If you want to we can get in touch and share our experiences.
K:i:n:d:l:y :te:x:t:+1:2:2:5: 7:2:6:6:4:1:2: W:h:a:t:s:A:p:p:
Great content. The caveat is that this is the strategy for high-cost housing areas like on the coasts, right? Best first purchase in lower cost housing areas might well be a single-family home or even a duplex/multiplex where you live in one of the units.
Not necessarily -- this can work in really any area -- but I love the duplex/multi idea. Sometimes harder to get 'started' though.
FHA and VA approved association is new/great advice!
Totally anytime!
Kevin - put this on a Spotify podcast! Your info is so clear
You’ve come a long way with that studio. This info is still gold.
K:i:n:d:l:y :te:x:t:+1:2:2:5: 7:2:6:6:4:1:2: W:h:a:t:s:A:p:p:....
Slightly down on myself right now after watching your videos and finding your channel. I have sold two house, and made decent money. However, if I have simply done a cash out refi when I moved from both houses, I'd be looking at still having $100k in combined equity, $500/mo in principled down payments, and about $100k in savings to be used to purchase a third home. Instead, I am buying the third home, have no rental properties, and only have $30k in cash to use towards that down payment.
I am just angry at myself for these poor financial decisions. But I have seen the light, and I am hoping I can get in the game. Better late than never, but man $100k in equity, $500/mo in principle pay down, and who knows what kind of cash flow, and it is a little devastating to think about.
That's an expensive mistake, but look at the value of the lesson you learned!
Hey Kevin random question for you. Now that I've launched my course and I have a lot of income coming in I know I can write off mileage and maintenance on my vehicle but if I use it like you do or our other friends that use it in the background like a Lamborghini can we write off the payment as marketing or props? is that why everyone puts their vehicle behind them in their videos? Sorry I know you're not an accountant and I don't take it as legal advice so I completely understand. I don't want to lease and I know I can take the right off that way... It's a BMW i8
More people need to see this. Great work!
You, Sir, are the best! Love your content. Just getting started but will definitely be buying some merch. Give em hell!
Just put an offer on my first rental... it’s a condo... your advice was a huge influence! Thank you! (It’s a 2/1 tho)
Congratulations!!! Hope you get it!!!
Great supplement to section 5 from your Investment Course
Scrapped and re-invented my game-plan!
*Btw looking forward to purchasing your Financial Course as well around February!
Truly amazing quality content Kevin,
Humbled to have found you
when you first appeared on Graham’s yt
K:i:n:d:l:y :te:x:t:+1:2:2:5: 7:2:6:6:4:1:2: W:h:a:t:s:A:p:p:.....
Hello Kevin, Great Video. I'm watching all the ads to support your channel.
Kevin, would you sell your condo if you are currently experiencing negative cashflow of about 100-200 dollars due to a 7.5% pm fee and property management also takes out one months rent per every new tenant contract? What are my options other than selling, being my own property manager? Should I find a cheaper PM company or is that tenant contract fee a normal thing?
I completed $tep 1 six months ago...( got sum "wedge" built in)
....cant wait for $tep 2
TFS
With all due respect, HOA's and Home owner dues blow major oats, for lack of a better word. They are constantly, increasing association fees and playing neighborhood politics? And then the fines or warning letters for violations of HOA rules? petty rules ..Nah, I went a different route. I bought a fee simple 3/2 single family residential with 3G down and $30G built in equity with zero repairs and finacial headaches.( That's why Home/Building Inspectors make the big bucks) and they're worth their weight in gold to me so far. East Coast is sooo much more affordable than WEst Coast LOL..TFS
Yeah you gotta be careful. You can really get sucked into a crappy HOA and hate it. Definitely get an inspection too!
Would you recommend hiring a tenant manager if your not living in the condo and having 2 tenants? Or is it easy to manage the tenants yourself?
Hey Jordan! I highly recommend a property manager. So many nuances and so much risk. Not worth the savings
He actually made a video that addresses this 2 months before this video.
ua-cam.com/video/P-XB0ZdE3aQ/v-deo.html
Make your cam 3 the middle shot,, it is the cleanest looking shot.
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To Find estimated market value of a duplex, do you make an offer based on comps or based on cap rate? Some say residential (4 units or less) prices are based on comps and commercial is based on cap rate and income.
Graham never talks about the HOA, so I think you are better at informing us. You're obviously considering more factors.
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I’ve heard some HOA bylaws can restrict rentals. Definitely do your due diligence.
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Kevin - Have you done a video on buying your 2nd property and dealing with the DTI ratio problem if your "day job" income doesn't make sense to the bank? I have 100k equity in my home that I can take a HELOC on, but DTI is keeping me from buying anything worth having. I realize eventually the bank will give you 75% of rents, but not so for new landlords.
Kevin in your personal opinion what place are the best to buy in a given area. I always heard that location is key.
Thanks kevin. I'm learning a lot from your videos and I'm think of buying a house. Is there a way to ask you direct quesrions?
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Thanks Kevin. Need to watch this video every day without the clever investor commercial!!🤗
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Kevin I know your a fan of grant as well what do you think of starting off buying a 4 unit building still being residential and renting it out and starting off that way or would you condo technique be better? Thanks kevin
But if I am familiar w/maintenance & repairs, through owning several RVs & a boat, that I've maintained & fixed myself, it would be just as easy 4 me 2 buy a small house as it would be 4 me 2 own a condo, w/their homeowners' association fees? I have also co-owned a condo & could have done most of the upgrades they did there.
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I always leave these videos pumped.
Would you need to furnish a 2 bedroom 2 bathroom condo to attract tenants or could it be left unfurnished?
Unfurnished rentals are fine
Kevin, Please make a video as to how the rent stimulus will affect those that are nearing foreclosure.
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Omg i was just thinking my only hope is buying a old condo. This means im on the right track. Good stuff man. Im single and i have 20 exp. In construction. But i think its going trickie finding a fixer condo.
Yeah, mostly cosmetic, but you will find it
Crazy! Yeah definitely important to assess the age of HOAs and their assessment history / reserves
Hey Kevin, I'm an agent from Kansas City MO. I just wanted to say you totally earned my "LIKE"! A 3 piece suit for UA-cam and Like Subscribe in background 😂😂👏👏
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Kevin, are HOA fees negotiable at any duration of ownership?
Negative. Just do your numbers upfront though: I find a lot of rents are higher because properties have association dues and provide amenities to the tenants compared to similar properties without dues.
LMAO! You look like Ryan Reynolds on your thumbnail. That's awesome!!!
Great video Kevin! I find myself in this same situation. I have a 1 bed 1.5 bath condo that is FHA approved. Recently thinking of buying a 3 bed 2.5 bath. Thank you for the knowledge I find this tailored to myself.
anytime matthew!
How do you like dealing with the HOA and the fees?
Is this a wedge time? Your earlier videos suggest to wait because of the state of the market. Is this still a good time to buy my starter condo?
You have pretty good hand gestures and body language while making your points. Where did you learn that?
Nice! I was looking at houses but condos are maybe the better starter for me as a beginner. Thanks Kevin! I didn't even think about that alternative.
Anytime cash cow!
how does one find FHA VA Hoa's.. oh nvm answered at 6.07
thanks Braulio!
My Mom is like "finish college first" but I've never wanted to work so hard in my life...
Work while in college. You will never have so much free time. Looking back... college was easy as fuck and you can LEVERAGE SO MANY CONNECTIONS. Meet all the business owners / people that teach classes for fun. Get a legit degree too. IT, Accounting, Healthcare, etc. Look up job data... it's good to have a fall back.
But yeah if you work hard you can be rich in college. You'll never have free time and access to such quality cheap labor again
Why are you so helpful?
ah ty!
Well , when you really love what your doing and your making money, why not share alittle!
Amazingly awesome real estate video!
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Kevin, any advise or opinions on foundation repaired homes when buying for investment purposes Down here in Texas.
yeah totally what's your situation? Hit me on Instagram @MeetKevin
Are there any rules on an FHA loan that you cant sub out or have to personally live in it for a certain time period before you can..?
Hey kev, can I get an eloc now that my hamp property has equity? I liked that idea you had in a previous video, about how using till market goes south. I'm not that sure about the terms of the hamp program
3:11 seconds go by without a hint of what the first property should be... then, finally, "you're going to start by doing this... you're going to buy... a... *cuts to ad*... CONDO".
Would you recommend buying Co-ops and making it a "be all end all for now" type of purchase even though they can't be utilized such as Condos? I live in NYC, and Coops are vastly more affordable than condos. Of course I would love to own a condo for REI reasons, but the difference of saving a down payment and suffering a high mortgage rate seems to not really balance out in most of my situations. I was thinking of living in a Coop, saving money there then perhaps sell my coop and start this process as you've explained in this video.
I hope while, I am saving up for buying my first rental property, the prices will go down and then I get a good deal. Do Condos not have a high fluctuate rate? That would be a big off turner.
huge fluctuation on condos
Don't worry, the property will definitely crash. It crashes about every 10 years. We're just over 11 years after mid 2008, so expect it to crash anytime soon. However, prepare to wait until 2023, as the longest record between recessions was 15 years before 1973. Add Brexit to being overdue. It seems like the Feds purposely crash the market every 10 years or so so that their banks can rob money from owners of foreclosed homes.
Would you recommend buying a condo in West Hollywood and fixing it up condo price around 800k-900k?
Totally! Hunt for a great deal!
Always feel free to run the scenario by me. Not too far away from me.
Hi Kevin, I am currently into real estate in the UK markets. You talked about getting a property that's ideally FHA approved and VA approved. What is the alternative/name for the UK market?
Also how long do you recommend taking the mortgage term for?
Thank you.
Best videos on real estate. 100%
How much trouble can someone get into if they say that its going to be "owner occupied" but really you're planning on using it as an investment property? I've always wondered how people can put down less than the required down payment for an investment property and still rent out the place.
Question: What if I already own this condo (paid off), but it needs all these repairs? I'm not living there currently. Can I make these repairs & updates, then use it for my first rental property, with little risk?
Why would you not be able to fix your condo up and use it as a rental?
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What about if I already own a house and want an investment property? Now I won’t qualify for an FHA loan at 3%, I have to get an investment property loan that requires 30% down payment. Plus I live in the Bay Area where housing is just stupid expensive. I’m looking to invest 1-2hrs away from the Bay to be more cost effective. Any advice on how to get a loan for less than 30% down payment?
Im confused, usually worst case scenario you need 20%. Also, why not get another FHA?
Hi there give me some tips on my next home in Vegas
What about townhomes, would this be the same as a condo?
yes same thing
Kevin's advice or a FHA & VA approved duplex, triplex or quadplex that either cash flows or is at the very least costing you less than renting would with you living there accounting for vacancies, repairs, principle, interest & taxes. You are NOT the owner. ;)
agreed
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Hi Kevin, first off, really enjoying your channel. Very informative and clear, so thank you for that.
I've got a few questions I'm hoping you can answer for me.
1. This video was published on August 5th 2018. Today is March 1st 2019, do you still feel the same way about condos as a first purchase?
2. Is there a condo or strata fee that is simply too high, and enough for you to walk away from cause of a certain number?
3. I live in Canada, can the strategies you provide work here as well?
4. I live in Lower Mainland BC where real estate prices are through the roof, however I'm from Manitoba where real estate is still super affordable. If the pricing is better would you recommend buying in a province where I don't live? Or do I spend more and earn less to buy in province that I live in? It would be my first purchase.
Sorry for all the questions, I hope you're able to respond, thanks!
1. yes watch this ua-cam.com/video/Xnkud6apyCQ/v-deo.html
2. No
3. Same as US; student rentals can be big in some college downs but generally the same as US
4. Buy local
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Your video editor is insane sharp
Do lenders let you repeat 5% down every year when you want to buy a property to live in and later rent it out? If so which type of lenders
Yes, all.
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if you keep pressing 0 on the num pad you can hear kevin say 'TODAY IM COMING...'
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Okay so I get the condo thing,so your saying get like a semi fixer upper so you don't overpay but you don't mention how or a strategy to fix it up do you have to make sure you have excess cash for this?What if your not handy?
Kevin have been following you and grant am doing the maths as he says if i find cash flow will contact you
Thank God for you Bro.
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Condos VS duplex for first house hack?
This is something I am questioning!!!
Hey Kevin, been following you for awhile now. Wanted your advice on how to get a leg in. I currently own my second home ( first was a condo that I made 40k on). I’m 35 married, wife just quit working so cash savings has significantly decreased. Currently have about 60k equity in my home (300k value, owe 240k).Since I have only about 6k saved up in my real estate fund, should I move out to a rental and rent my existing home to get started or should I keep saving and buy a 100k condo after saving 30k. I’m in southeast MI market and my house is a 3b/3bth split level with 2100 sq ft plus semi finished basement.
I can't do this in Boston, its so exspensive..
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I am assuming all these things apply to NYC? :)
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FHA approved condos. Always fun to find or get the approval status up to date. So many expired statuses around here.
Oh my gosh disastrous process to try to go through yourself.
Kevin, what about those of us that are already married with children? Help us out! Not going ti be able to start out with a condo but want to start!
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I’m in this situation now. I want to purchase a single family because my family expanded and rent my 2 bedroom condo I purchased when I was single that I’m still living in.The value went down and I’m wondering if it’s because an investor is buying the condo units up and renting them to section 8. He owns six of the 12 units in my building alone.
Hmm how many units in the complex total? Likely values fell because of our weird summer that we're just starting to see the effects of
9 buildings each has 12-18 units so around 140+/-. I purchased in 2010 for $100k with 5k Equity now I think they’re going for around 78-89k. Zillow’s zestimate says 135k (which I doubt). The guy is buying the units for around $65-70k from short sales/foreclosure.
Would you invest in PALMDALE?
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Thank you!
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I wish you lived in Canada so you used more terms that applied to us, but nonetheless great video
Ur videos are so helpful! Great knowledge for realtors like myself but also investors 👍👍 thank u!!
Don't like the camera angle shift but do love the contents
Thanks for the feedback. Too many changes you think? Maybe just one change per point, so to speak?
Meet Kevin
Yeah, in my opinion the shifting camera angle is distracting. I do get your points of getting the viewer's attention.
Isn't the combination of a quality HOA and distressed property in the "wedge" pretty rare?
Possibly more rare, but wouldn’t say rare. Condos are less likely to have big wedges but there are a lot of single families in HOAs that can be quite distressed
Out of curiosity, how do you feel about HOAs restricting who you use for utilities? I recently was going to change and was told we're forced to use only ove option...
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Kevin, trade you that RS party hat for a bronze 2h? 0:51
DONE!
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