All Forum Posts by: Adam Gollatz

How long do you plan on living in your current residence? You said you could cash out refi and get 17K @80%LTV, what was your place appraised for? Have you shopped around for a lender thats does heloc's

Looks like scare tactics and fear mongering for clicks if you ask me. Welcome to the 2010's The foreclosure numbers are still only 1 out of 900 or so housing units (in only 1 market they showed). Wake me up when it gets to 1 out of 300.

Spreadsheet I created. The formulas are simple, just break it down into parts and test it with numbers you know. It'll pay off in the end.

Can you give any insight into the specifics of the litigation? Have units been selling during litigation?

Chances are if it was in litigation, buyers weren't able to obtain conventional financing leaving the buyer pool limited to cash buyers. Some of which might have been scared away too. Small buyer pool = less demand = drop in prices. Track new listings now that the litigation has settled and see if you notice any positive changes, ie shorter market times, higher sales prices, etc. There is no formula for how long it will take the market to adjust. Its going to depend on how much activity is in your area. Id say give it at least 6 months to see a trend. Unfortunately with interest rates on the rise, a lot of people are predicting prices will stay flat.

I have a condo listed, in a different market, that was in a similar situation. Association troubles kept buyers away and prices seem lower than other buildings.

Just run the numbers in a spreadsheet if the calculator is giving you a hard time. Excel/Sheets is a REI's best friend.

Hi @Charles Mitchell, I dont use the calculator on here, so I cant offer guidance specifically on that, but its a fairly easy calculation. First let me start by asking how you plan on refinancing out of the HML and what those terms are? I will also need your anticipated carrying costs until you are able to rent out and refinance.

As for the math its simple. You can roll the HML lender fees into the different cost areas, or total it all up into its own "lender fee" line item. In the end it doesn't matter as long as its accounted for. Below I rolled them into closing and carrying costs.

50k purchase + 

50k rehab + 

3k closing (this is probably where your HML points will go if you pay them upfront, so adjust accordingly) +

3k refinance (just my no effort estimate, run with the numbers from the lender who will do your refinance) + 

carrying costs (monthly interest, taxes, utilities, interest on the HML loan * # of months held)

= some number once you fill in the blanks. Just make sure this number is less than the LTV percentage the lender will refinance or you will be leaving money in the deal.

Feel free to message me if you want to talk more about the specifics.

@Piriya Srisathit The picture didnt show up. Look around the neighborhood in the morning/night. Where are people's car's parked, driveway or the garage? More than likely people are using their garages to store their toys/junk and not park cars. If you have a hard time selling, you might want to consider adding a small shed out back for the storage that was lost by the garage conversion.

@Piriya Srisathit Can you post of picture of the carport?

Have you consulted with your listing agent? I would check there first, they should know the ins and outs of your market. If you don't have one, or dont have time to consult with one, Id first ask myself if it makes sense to have it. Whats the climate like? do people use their garages? If so, what for and is a carport a sensible alternative?

If this doesn't give you a definite answer, I would probably take it down. 

The cash flow/CoC numbers look ok from an investment standpoint assuming your estimates are all accurate. Any more info than a 4 family with garage in kokomo?

Id recommend running the cap rate/ cash on cash return numbers as it stands with your 0 invested, 1/3rd share and the 42k invested full share. Is 1100 the cash flow or rent amount? Generally speaking 40-50% of rent goes toward expenses.