All Forum Posts by: Adam Drummond

@Trieste Matte

I am a realtor in SC.  It has been 10 years or more since i have had this issue with a client.  i believe that you will end up losing roughly 7%  to sc in taxes if you are an individual.  Def do not take me for my word.  Please verify this.  

@Kenneth McKeown

basically if you're using less money out of pocket.. it will make your cash on cash returns look better.  make sure you're including your closing costs that you're paying for out of pocket as well, and any money that you are using for immediate repairs.  i will give you an example of a deal im working on now.

a duplex that im trying to buy for 35k.  total rent is $800 per month, but after i pay mortgage, taxes, insurance, management, money set aside every month for repairs, etc i end up with just $200 per month cash flow net.  i multiply that $200 x 12 months in a year.  my annual cash flow is $2400.  My money out of pocket including closing costs, repairs, and closing costs are going to be about $10k.

$2400 / $10k  = 24% cash on cash return

@Kenneth McKeown

https://www.youtube.com/watch?v=T_7vhsSBi7c          

the above video is a biggerpockets video where they break down analyzing rental properties.  hope that helps.

@Chris M.

I have seen anywhere between 41-45% debt to income ratios used.  I am not a lender though... this is just what i have seen in the past as a Realtor.  Ofcourse, the higher the credit, and more in reserves will probably mean they see you as less of a risk and might allow 45% vs 41%. 

hey guys.  i was just reading over some forums on here, and ran across a few flippers that say they use private money.  i have been nervous about ever doing that.  up to this point, i have used conventional financing through a bank, and /or my own savings.  i'm open to hear the pro's and con's of doing other financing options.  i understand that private money doesn't take 30 days to access as conventional financing.  i researched private lending rates and fees a while ago, and it scared me away.  in saying that... i feel im really limiting myself, because i'm only relying on my own money.  thoughts?  thanks in advance for your help.

@Account Closed

I would think that the whole building would need to be livable in order for that to work.  just last week i was on the phone with 5+ local larger banks, and i had to contact a small local bank that would be able to lend on properties that might not be livable.  

@Account Closed

I am currently seeking financing for a duplex.  I have found that larger lenders will be able to do a conventional loan for a duplex, but the building would need to be livable, in order to pass the appraisal /inspection that is required by lender.  I spoke to a small, local bank in my area, and they will lend to me "in house", and as long as i qualify... they don't worry about condition of property as long as the property appraises out.  hope this helps.  

@Chris M.   

I'm not sure i understand your question.  I believe in order to be approved for an fha loan..  they want to make sure that you're monthly debt including your new mortgage does not exceed roughly 42% of your Gross monthly income.  They include student loans, car paments, hosp bills, credit cars, etc in figuring your debt.  They will also want to see a history of "money reserves" to make sure that you have money for down payment and closing costs, etc.  I hope this helps.

@Kevin Siedlecki

My last statement about netting $1k per month per building is based on conventional financing, putting down $20-30%.      By the way, thanks for the reply.