All Forum Posts by: Andrea Castor

Congrats and thanks for sharing your story! Having time to coach your kid's soccer team is definitely hitting home for me because that's my goal too! My uncle owns several large complexes here in the Dayton Ohio area and this is always something I've been curious about, but didn't think you could even listen in with $100k. Glad to know there may be a way...

Congrats! Being a family of 6 ourselves, I totally understand how tough this is. Kids want it all - UA and Justice clothes, trips to Disney World and the beach every year, select sport this and that and not to mention you feel like you deserve some nice things to since you make the money. BUT, we have a big sign the second you walk in our garage door saying "CASH IN KING." It's true! We operate on envelopes and going to the grocery makes you reprioritize if you really need that $12 bag of shrimp or if you could just sub in some leftover chicken from the freezer, or if you take the time to cut a few coupons because that $6 you saved will allow you to splurge on a bucket of ice cream for the kids. Many of our friends don't get it, but they are also totally confused on how we could possibly be paying cash for our investment properties and maxing out our IRA each year. It's not magic, it takes hard work, planning and determination! Good for you for realizing this and even more awesome that you are a team in it!

One popped up in our area like this. Had just been flipped, still a great cash flow and cash on cash return. It was BEAUTIFUL! BUT, it was priced at the top of the market. I even went to the open house and wanted it so bad. I knew it would rent in a heart beat, BUT, at the end of the day I realized that by paying at the top, I only had one exit strategy and it was to rent. For me, my threshold is 70% rule AND good cash on cash return. So in the end I didn't make an offer. It's pending the 1st week.

I'm not finding a ton of info here on BP about land development so I'm not even sure if this is possible. We are personally looking for ANYTHING in a small town close to our home called Waynesville. The schools have become some of the top in our area, but are still very small (less than 100 kids per grade). Lots of people looking into the area, BUT, not a lot of real estate going on. There has been quite a bit of development of streets with 2-5 acre lots but houses are not attainable to the "typical" family and are over $400k+. There is one main builder in the area that is booming but again, custom builder $300k + lot.

Anyway, long story short, there is a farm house currently available for $850k. Comes with a horse barn as well as 66+ acres. This is way out of my price range for a typical home and way more land than I would need. But to make it attainable, I'm wondering if there is a way to divide off the land and sell/develop. Where would I even start?

We are currently in the position that we would like to buy land (2-5 acres) and build around the $350-$400k range. We currently own one rental (Value $90k loan $36k, $350/mo cash flow) and have approx $45k cash to buy one or two more. We have our eye on a few around $100k, with $400/mo cash flow (assuming 20% down 30 yr fixed mortgage) and 20% cash on cash return. We keep freaking out that it'll ruin our chances of qualifying for land/construction loan. Without these rental properties, I dont thinI we'd have issue. Gross income 4x PITI, 800+ credit scores, no other debt including student loans.

Is this something we can ask our bank? The place we typically use has $250 closing costs but is extremely conservative. That's prob my biggest worry is getting my dream plot lined up and not qualifying because we are "too far extended."  

never heard of it but I'd love details. .

I am looking into this as well so we will be prepared for the next rehab. I haven't really considered using any of the store cards as we haven't seen any benefit to them in the past. I'm actually considering one with no payments, no interest for 12-18months and/or the one with the best cash back rewards. Personally, we always have the cash on hand for the materials, but since there are no cash only deals (typically) might as well get a little rewards for the money via cc.

Also, @Andy Luick mentioned, there are lots of other deals to be found besides Menards/HD/Lowes. We found a local auction site with Home Decorators Collection, Amazon, hardware store returns. We've been picking up lighting, faucets, sinks, vanities, etc for about 20% of retail value.

Hello to a fellow Dayton investor!

My husband and I are very much like you. We are Dave Ramsey followers, do not believe in any consumer debt, however, with real estate we have realized the growth possibilities with using some good debt for our real estate business. We aim for being as low risk as possible though. We focus on A/B neighborhoods where rents will continue to be strong, we make sure to have a good cash on hand cushion in case of emergencies, we always keep 30% equity in a property and financed with a fixed rate and we always buy low. Also, keeping the personal side separate, we keep a 6 mo cushion of expenses on hand should our investment income go to zero.

@ Bill Jacobsen

You are totally right. I misread dividing net income / purchase price (I had used cash invested).

So with recalculations, I guess cap rate is technically only 4.1%, but cash on cash return is 18-20%.

Hmmmm, so now it becomes even a trickier decision, low cap rate, high cash on cash return, but would save us a ton of money in rent and help give us time to find a deal/build while building equity.

Congrats to you! We are a family of 4 kids ages 8-3, not blessed with any twins and for medical reasons can't have more. Our lives our pure craziness. As my husband calls it, we are "hustlers" and he would call you on too. :P Hubby works at UPS 15 hrs a week for incredible insurance, he owns and landscaping business, makes furniture, does odd jobs and recently buying at auctions and reselling. I work for the gov't but part time now for family balance. We are working on our 3rd flip/BRRR currently. We have scrimped and saved, told our friends no to expensive getaways, did without to have the money to live the dream we know we're capable of!

Keep it going and teach those kids what life is all about! Live the dream and past on the legacy!