Bay Area Investor

[Gabriel King]

Hello my name is Gabriel.  I've been investing in real estate since 2006.  I own a handful of properties in the East Bay.  I'm a seasoned investor but looking to expand my portfolio.

I've been a lurker on this website for a while but his is my first post.

I've purchased properties at Trustee's Foreclosure sales (Alameda, Contra Costa and San Mateo Counties).

I have a question:  Would any lender provide financing if a property was purchased all cash at Trustee's Foreclosure Sale?

Here is Fannie Mae's criteria:

The original purchase transaction is documented by a settlement statement, which confirms that no mortgage financing was used to obtain the subject property. (A recorded trustee's deed (or similar alternative) confirming the amount paid by the grantee to trustee may be substituted for a settlement statement if a settlement statement was not provided to the purchaser at time of sale.)

[Linda Lo]

So here is the full calculation: 

Cashflow = Gross rental income ($2800x12) - HOA ($310x12) - Ho6 inusrance ($200) - property tax ($5760) - 3% vacancy ($1008) - repairs ($500) + tax savings ($7595)

Cashflow = $33600 - $3720 - 200 - $5760 - $1008 - $500 + $7594

Cashflow = $30006

Cash on cash return = Cashflow / Cash Invested = $30006 / $480000

Cash on Cash return  = 6.252%

I put vacancy 3% to be conservative, the property location is so fantastic that it is lower than 3%. 

Here is a website where a CPA explains how to calculate rental cashflow in detail. 

http://www.kdepc.com/rentalcashflow.html

@J. Martin We are here to learn from and help each other. I am an investor and a passionate learner. There is so much I can learn from you and from the awesome Biggerpockets community!