All Forum Posts by: Adam Frey

@Dennis M. The cash on cash return will be some where between 18-36%. What do your investments look like? What do you want to make in a deal?

I found a $50k house. I will put $10k down and that will make piti $350. The house rents for $650. Which means: Total rent collected is $7800. Total PITI is $4200. The surplus is $3600 I need to deduct for vacant, cap ex, repairs etc I have heard 50% and 40%. Which one do you guys use? Do you deduct that percentage from the $7800 or from the $3600 surplus?

My wife and I will have our primary residence payed off my May.  Once this is complete I plan to purchase 4 buy and hold properties in the first year.  My strategy is as follows:

I will start with a HELOC for $80,000 which is a little less than 80% LTV.

Then I will use this to provide the 20% down on each house in the $50,000 range.

We will be able to pay off the HELOC in approx 1 year leaving only the mortgages on the properties.

From here I plan to get our savings around $25,000. This savings combined with the $80,000 HELOC ensure we will have enough for emergencies, down markets, etc. (My wife is risk averse).

Once this is complete I plan to continue acquiring houses every few months. 

Here are my questions... 

Knowing I plan to purchase multiple houses in a short period would I be better off going to the financial institution for each house or finding some type of portfolio lender and discussing my business plan up front? What are the pros and cons of each?

Also,  if you have any other ideas or constructive criticism I am open to your opinions.

@Dustin Woodley That you for the advice! Is your turn key contact in the Wichita market?

For my first time buying a property I want to buy a turnkey property. I am looking to buy and hold. It will cash flow over $200/ month. Everyone says I should buy from a whole seller and fix it up. This concerns me because I know a newbie can get under water fast with this strategy. Does anyone else buy move in ready properties? Any other input and advice would be appreciated.

Hey Adam here! New to the forum and yours was the first post I came across. I am also located in Wichita.