All Forum Posts by: Alex Molina

Quote from @Chris Seveney:

Quote from @Alex Molina:

I have a question, I'm closing on a flip next month and need help with my final buying costs based on my HUD. I've done the calculations, but my numbers don't add up.

-----------------------------------------------------

Contract Sales Price: 45K

Settlement Charges: $19,723.14 

Rehab Holdback: $53,400

Gross amount due from buyer = $118,123.14

-----------------------------------------------------

EMD: 1K

Principle Loan Amount: 101.8K

-----------------------------------------------------

Cash at settlementGross amount due from buyer: $118,123.4

Less amount pay by/for buyer: $102,800

CASH FROM BUYER: $15,323.14

------------------------------------------------------

Lender Fee + Service Fee: $4,999

Insurance Premium: $843

Interest paid in advance: $92.36

Title Fee's: $1,504.2

Transfer Fee: $100

County Taxes: $184.53 

Down Payment: $8600 

Total: 16,323.09 

Why is the total different from the cash I gave initially? Did my my EMD go towards the down payment?

This is what I have for my final buying costs on my accounting software:

EMD: $1,000 Lender Fee + Service Fee: $4,999

Insurance Premium: $843

Interest paid in advance: $92.36

Title Fee's: $1,504.2

Transfer Fee: $100

County Taxes: $184.53 

Down Payment: $8600 

Total: $17,323.09

get a prelimary copy of HUD and post it, be 1000x easier

I have a question, I'm closing on a flip next month and need help with my final buying costs based on my HUD. I've done the calculations, but my numbers don't add up.

-----------------------------------------------------

Contract Sales Price: 45K

Settlement Charges: $19,723.14 

Rehab Holdback: $53,400

Gross amount due from buyer = $118,123.14

-----------------------------------------------------

EMD: 1K

Principle Loan Amount: 101.8K

-----------------------------------------------------

Cash at settlementGross amount due from buyer: $118,123.4

Less amount pay by/for buyer: $102,800

CASH FROM BUYER: $15,323.14

------------------------------------------------------

Lender Fee + Service Fee: $4,999

Insurance Premium: $843

Interest paid in advance: $92.36

Title Fee's: $1,504.2

Transfer Fee: $100

County Taxes: $184.53 

Down Payment: $8600 

Total: 16,323.09 

Why is the total different from the cash I gave initially? Did my my EMD go towards the down payment?

This is what I have for my final buying costs on my accounting software:

EMD: $1,000 Lender Fee + Service Fee: $4,999

Insurance Premium: $843

Interest paid in advance: $92.36

Title Fee's: $1,504.2

Transfer Fee: $100

County Taxes: $184.53 

Down Payment: $8600 

Total: $17,323.09

Hello, 

I have a property that I inherited and fixed up myself. Its worth 300K and the loan amount is $110,000 which would leave about 150K in my pocket if sold. If sold, I plan to use the money to do multiple BRRR's and flips. I'm only cash flowing about $300 a month on this property. What would be a wise decision here?

Quote from @Chris Seveney:

Quote from @Alex Molina:

Hello, 

I'm in the mist of buying a 2 unit multi family in CT (New Britain). The current market in this area is pretty hot due to low inventory levels. I plan on purchasing a property that will break even or produce negative cash flow ($-200) if I move out. This will be my second investment and I plan on housing hacking and living in the upstairs unit. This current property that I have under contract has a new roof (1 year old), new furnace (1 year old), and a remodeled unit w/ new appliances. I'm thinking this would reduce CAPEX in the short term significantly and refinance when rates go down (Current rate 6.9%).

I need some advice on if this would be a decent situation to enter starting out to get some exposure to real estate investing. 

 As with most answers "it depends" - have you run a proforma with an exit strategy? For exa,ple buying an asset with no money down with $200 negative cash flow is different than buying one  with $50k down and negative cash flow.

Cash flow is just one metric in investing, when a developer buys an asset to upgrade it they are negative cash flow early on then they get to positive and can exit the property. If the property is at its peak value  and you think rents will not go up significantly in the next few years and your only thing that can go right is interest rates come down - you are putting all your eggs in that basket. What if the values go down and you have to contribute more equity to get a loan?

There is a lot to unwind here and the asset needs to be looked at more thoroughly in order for someone to provide a response. Hope this helps

Thanks for your response. I'm using a FHA with 3.5% down on a 2 unit multi family (315K). I don't think rents will increase significantly in this area. It's seeing a lot of appreciation value recently due to low inventory levels. I do believe that property values will continue to increase as many individuals in CT are looking for areas were housing costs are lower. Thus, Hartford County is a place people are turning to compared to other areas in CT. I'm thinking I could offset my negative cashflow with cashflow I'm receiving on another property. And eventually sell this asset in 5-10 years to buy in a more desirable area. 

Hello, 

I'm in the mist of buying a 2 unit multi family in CT (New Britain). The current market in this area is pretty hot due to low inventory levels. I plan on purchasing a property that will break even or produce negative cash flow ($-200) if I move out. This will be my second investment and I plan on housing hacking and living in the upstairs unit. This current property that I have under contract has a new roof (1 year old), new furnace (1 year old), and a remodeled unit w/ new appliances. I'm thinking this would reduce CAPEX in the short term significantly and refinance when rates go down (Current rate 6.9%).

I need some advice on if this would be a decent situation to enter starting out to get some exposure to real estate investing. 

My name is Alex. I just graduated from Yale YSPH and will be working in administration at Hartford Healthcare next month. I have 45K in capital to deploy and have experience doing one renovation. I'm in the process of buying either a multi family or single family, and will be using an FHA or conventional loan.

I'm seeking out for a mentor that has some knowledge regarding live in rehabs, medium term rentals, multi family investing, etc. I just need some guidance on my next property purchase. Ultimately, my goal is to develop a relationship or potential real estate partner as I grow in my career and establish more equity. Also, if you're new in the world of real estate, I would be still happy to connect!

Hello, 

I have been receiving cashflow from a property I own. I was wondering if the cashflow should be stored in a high yield savings account (4%) or in the stock market? I haven't really heard much about this topic. Any input would be appreciated. Thank you. 

Quote from @Justin Hammerle:

@Alex Molina - I'm not sure why you would need any kind of excuse to use an FHA loan; as long as your income qualifies there would be nothing restricting you from purchasing a SFH or MFH up to 4-units with an FHA. As long as the conventional loan is in place and you refinanced out of the FHA, you are free to use it again to your discretion.

Got it, so I just have to convert it into a conventional and I could get another FHA loan without reason? I just can't have two fha loans at the same time, in that case a reason is needed.

I'm just starting up in real estate and I'm in the CT area where the medium house is approximately 365K. I'm just finishing up grad school and moving to Hartford, CT for a new job. I have about 50K in funds. 

I was thinking about doing a FHA with 3.5% down and living there for a year, then moving out and converting it into a conventional loan to get another FHA. I heard this strategy is complicated since I need to have a reasonable excuse to get a second FHA after converting to conventional (different job, emergency, etc). Is this the case? My other plan would be to save up another 50K and then use a hard money lender to do a rehab. But, that would put me out of the market for a long time and I would have to rent.

Any input or ideas would be highly appreciated. 

Hello, 
I have a rental in New Haven, CT (3 Beds/1bad). It's currently renting for $2095 and the tenants are going to complete their first year in the property and intend to do a lease renewal. According to my property manager, the market rent is $2,100 at this current moment. They suggested an increase to $2,125 which is approximately a 1% increase.