All Forum Posts by: Alexander Flores

@Matthew Rembish

Yeah, I think your plan can work in our area but any home that cheap we have found needs more than 10k of work. We bought one rental for 72k and it needed 25k in work. The second one we bought for 99k and it needed 20k in work. 

Your plan is a good strategy if you don't want to carry mortgages. I know of a couple people in our area who bought 10 or so properties over 10-15 years conventionally and then just started using all their cash flow to pay off each mortgage. I think there are a lot of different scenarios you can run.

Both homes we bought for under 100k in Ocean County have yearly taxes around 3k and insurance around 1k. So without a mortgage, you're looking at $350 expenses, not including vacancy or anything. Our 72k property rented easily for $1450 a month, our 99k property will be lower since we are renting it out to a family member.

I would say your plan is doable.

@Nick Smith Sounds like our current rehab. Lady had five cats and then got foreclosed. When they finally kicked her out of the home she filled it with dry cat food and it became a cat sanctuary. Neighbors finally complained enough to the town and someone came in the remove all the cats. A year later and now we get to remove all the cat piss ridden parts of the home during this rehab. We ripped off all base boards, sanded the entire home due to the cat piss seeping through the carpets and saturating the old hardwoods underneath. Normal remodel stuff. Only major thing was the HVAC ductwork was full of cat hair and the piss smell was atrocious when you ran the heat or A.C. The ducts were through the floor so I guess the cats used the ducts as a sewage system. $5k later and we have nice new duct work. Easily doable though, getting rid of the cat smell.

@John Adeyi I use Redfin.com but I just got my real estate license in NJ so now I'll be using the MLS.

@John Adeyi If I didn't make a dumb investment in different area than real estate I would be renting out my house for 4 years, then sell it before the 5th year ends to make more money from cash flow and still pay no taxes. I want the equity now to reinvest into more real estate.

@John Adeyi Yeah I knew from the minute I got the offer accepted I was going to live in it for 2 to 3 years then sell it so I wanted the longest amortization. I think a 30 year is the best way to go since you can always pay more than the minimum but not less. If you get a 15 or 20 year you have to pay that minimum. You can turn a 30 year into a 20 year but not vice versa.

@Ryan Huddleston

The only way to make it cash flow and pull out the 50k is by getting more for rent. You can't change the way math works sadly, I wish we could.

If you can do this deal with 35k, then refi to get the 35k out and repeat the process. You will be getting cash flow each month from the properties and only using your initial nest egg. Hopefully, a deal down the road allows you to pull out 50k and still cash flow.

It is best to get started and not get stuck in the analysis paralysis to find the perfect deal.

Just my opinion.

@Bode Adeyi

I bought the home for $135,000 and it appraised six months later for $265,000. I did a 75% cash-out refinance on the property. So I had the 20% equity to get rid of PMI.

@Bode Adeyi

I did this with my personal residence I currently have on the market.

Was a simple flip with significant equity. Refied after 6 months for some cashout equity and to get out of PMI. Bought it with FHA, have had roommates the last two years. Selling after two years of owning as a personal residence.

This would be some sort of BRRRR property but the third R in BRRRR is rent and if you did and FHA you technically should be attempting to live in the property.

@Ben Langebartels Being in the GC world and having the license is fantastic and a life saver.

The bank probably means you will only need $300 towards their side of the closing but I would still use a lawyer and title company to protect yourself which will increase your costs a bit for closing on the buying side of the transaction.

Wouldn't want to close on the property and find out there is a cloud on the title and someone else has the rights.

@William Allen Thanks! The property is on a road called Pensacola, I gotta change that in the description ha It is in NJ.

@Jamie Lashley I use Rehab Financial out of Pennsylvania. The property is in NJ, the road name is Pensacola, sorry!