All Forum Posts by: Andy V.

It seems to me that if you tie up most of your cash on a few deals you can't scale because you're tapped out. The podcast BP recently did on rentals discussed cash flow of less than $200/mo and it still was deemed a good deal due to tax benefits, others paying down the loan, etc. I thought the way to go was to put very little of my own money (using private lending) for each deal, buying at less than 50% ARV, adding in 20% for improvements, getting perm financing thru a portfolio lender (who measures the strength on the individual deal, not my debt to income ratio) to pay off the private lender and go to the next one. I've not seen anywhere on BP that you should be using, significant, if not 50% down payments. There are even books available through BP on low and no money down deals.

thanks guys. I guess I needed to be reminded of the "and hold" part of buy and hold. It's still a bit unnerving to potentially have 10-12 properties in the not too distant future and only have positive cash flow of $1,200/mo. It could feel like a lot of risk for not much return. I guess as long as I really screen tenants well, keep the properties attractive and stay disciplined about not spending the money beyond the mortgage I owe, things should be manageable. 

I am totally stoked about rentals, having recently come to feel that they will be my main focus, accepting the fact that when a nice flip comes my way, I'd take advantage of it. Atleast that's the way I felt after 9 podcasts and countless hours reading posts here on Bigger Pockets. I'm looking at three properties being considered for BRRRR opportunties right now. After crunching the numbers on the Bigger Pockets calculator, they just barely cashflow! I used 10% for vacancy, 10% for repairs, $200 for Capex, plus taxes, insurance, and 8% for management fees. I thought I might manage my rentals myself for a few years but wanted to set them up for conversion to PM by others whenever I wanted to. In any event, buying $40 - $60K properties that need about $15 - $20K in repairs and have ARV's of $90 - $110,000, such that I need none of my own money down (using private lending for the initial purchase), yields a positive cash flow of barely more than $100! It hardly seems worth it if you excude appreciation as a benefit you can count on. How do you do it? How and where do you find properties that cash flow $375 +/mo. like I read about?

Is there a good real estate investor accountant anyone can recommend in the NW Indiana area? Not someone who you just heard about but a firm with whom you've had a great experience and you can say, first hand, is very educated in this realm.

I'm curious how an investor/partner would recoup his investment if the property ends up becoming a rental (since it doesn't seem to be selling). The funding came from an investor and I managed the rework/upgrades. We agreed to a 60-40 spilt of flip profits in my favor. The house isn't selling and we are considering renting it. Even if I got a mortgage at 70% LTV, he still wouldn't be made whole. How does an investor on a rental ever get his money back, plus profit?

I have an investor partner on a flip house deal that isn't selling after 5 months.  I'm considering renting  it out as a lease option with a sizable option payment (7.5%) plus a monthly rent of about $1,200 for 16 months or so.  That way we could possibly put it back on the market spring of 2017.  The investor has $107,000 in to the deal and the house is worth about $130,000 based on comps.  If I get a mortgage for 70%, I'll have about $90,000 to give back to the investor.  Plus, the property would positive cash flow about $400/month after mortgage, taxes and insurance.  Even if I split that with him to get him paid back sooner, it would take years and we wouldn't have much of a kitty should we have any unforseen expenses.  Short of keeping the house on the market going into a snowy winter, what's the best/quickest path to making him whole? He's been very supportive to date but we need to free this capital up for the next deal.  Any advice?

We have a realtor and it is listed on the MLS. The notion of splitting profits after expenses is something we have discussed. Obviously he doesn't get his money back quickly, and that may be OK. If we decide to do a land contract, its my understanding to always keep the lease option agreement separate from the rental agreement to keep us from having to foreclose on (vs evict) the tenant should they get behind in payments. The option also has to be "bought" for the right to purchase for the one year period, right? And then purchased again for the following year should they chose to stay and still not buy the house? If so, how much does one typically charge for the option? 10%, 7%? Also, for the rent side of the equation, is it normal to get the first and last month's rent plus a security deposit up front, in addition to the option payment? That seems steep...........

We have about $107,000 into it including utilities, insurance, lawn maintenance, repairs/upgrades, etc. 70% LTV would get me $91,000, not enough to pay him off in full. That's the problem..........

Likely $1,100 or so.  That's what I have heard not having spent a lot of time exploring that yet...........

We bought a flip house last fall and did all the repairs through the winter. This is the Midwest so there is strong seasonal buying (unlike Arizona, etc.). We put the house up for sale this spring and have had only one offer! The obvious conclusion to jump to is that the price is too high. However, the house shows very well and the comps and the showings' feed back don't show the asking price is off the mark. The point is that while we just lowered the price again, we don't want to carry this house through the winter and wait till spring to start over. Its listed for $132,500. Does it make sense to do a land contract and rent it out? My partner put up the $$$ and I did all the upgrades. I can get a loan for 70% LTV, which is not enough to by out my partner. Does anyone have any suggestions for the right next move?