All Forum Posts by: Andrew Merewitz

@alfonso - please connect with me and let's see what we can make work. I have the funding, just looking for the deals that make sense these fays

Hey,

I currently on an airbnb on lake norman and I'm looking to expand around charlotte. I am interested in adding some more long term rentals in surrounding areas. I'm not convinced prices are going to "crash" any time soon, if at all, so thinking this as long term investment and not a quick flip. I'd like to hear what areas you all have had success in. I've spoken to a few realtors as well. Multifamily seems few and far between here, but I am interested in building up a portfolio of SFHs/condos/townhomes. Looking to just connect with like minded individuals as well!

4-5 bedroom houses, sleeps ~12 or so

I've looked on LKN as well. For higher returns, you'll need to do vacation rentals (1M house can rent for 100-120k/year) but they require a lot more work obviously. Vacation rental management companies here cost 20% or so, which I would need since I don't live here yet. I passed, for now, but I'm afraid home prices here are gonna keep rising and its tempting to get in now. 

Anyone know if 10% loans are available on houses in the 700-900k range? I don't have a mortgage anywhere else (renting) at the moment 

@Melvin List - does that change if its held in a land trust? (LLC holds land trust at the moment)

I bought a property 6 months ago in Florida via my single member LLC. I bought it with hard money and now want to refinance the property. It seems I can get the best interest rates if I do so via a conventional mortgage. I currently have 0 mortgages under my name so shouldnt be a problem. I'm just curious what things I need to be aware of before moving this property outside of my LLC into my personal name.

Thanks!

I have a lender lined up to refinance my first BRRRR, but has a 6 month holding period. Was wondering if anyone had any recommendations of others they've worked with that can finance properties in FL without a holding period (or even 3 months would be much better)

Thanks!

@John Leavelle Yeah, I thought about it more over the weekend and could leave more equity in the property and still have no cash out of pocket and slightly better cash flow #s 

Maintenance and Cap Ex I did 15% of rent - thats probably conservative since I'm going to be rehabbing it and fixing many things. 

Taxes/Insurance around ~$1200/year each for the home.

So I am looking a buying my first property to BRRRR in Jacksonville, FL. I'd be using hard money to buy and do the rehab and then refinance into conventional and I cant figure out what piece I'm missing as to why these properties arent $100+ profit per SFH.

Here's some sample #s I've been playing with.

Home #1
Purchase price : $50,000
Rehab Costs     : $10,000
ARV : $99,000
Monthly Rent   : $950


HML : 85% of Purchase + Rehab + Closing (est $5000)
         = $55,250 @ 9%

After the rehab, I could cash out refinance at up to 75% of ARV at 5%
75% of ARV = $75,000

This would get me all my cash out, and then some, but would leave me with a mortgage payment of $405/month

So after the BRRRR, the monthly numbers would be

Rent : $950
PM  : -$76
Insurance : - $100
Taxes : -$100
Maintenance/Cap Ex: -$142.50
Vacancy :- $95

Monthly P/L : $31.50

I just cant quite figure out where the #s are wrong? Is the issue that these #s are better for a flip? Rent/ARV is too low (right around 1%) ? Financing too costly? 

I could finance less and put more of my own money in and have a lower monthly payment and therefore more profit, but my goal is to build up a portfolio so I don't want to tie up too much of my own cash.

Any help is GREATLY appreciated!!