All Forum Posts by: Anita Morrish

Hi, we just bought this property and it's a little unique. I need help figuring out how much to analyze cash flow now that we've seen parts that we weren't able to inspect...

We bought a property 1/2 acre, it has a 2/1 home  and a mobile home on the property.

The home was being rented at 1500/mo.   ,  the mobile home was 1,050/mo.   We're going to owner occupy the house and rent out the mobile home.

Purchase price: 208k @ 6.5% ,  closing costs around 15k  for everything (we're basically getting the mobile home free as it's not included in the loan purchase, it will be separate bill of sale for $0.  Appraisal on property came back $1k  over the purchase price

We met the tenants and was looking at the mobile home (we weren't able to get it inspected like the house)  and its going to need repairs.  There's some leaks from the roof and below and will need some AC/heat - thinking of doing mini splits,  the kitchen needs to be rehabbed and some cosmetic stuff like paint and carpet.  Basically the previous landlords/owners never did any work and I think it needs to be fixed up to be liveable.

After closing, we'll have about $15k we could put towards repairs -  good news is tenant (who we'd like to keep) is willing to live there while repairs are done and doesn't have to be done at one time. I'm thinking ANY improvements will be better to them.

Anyway, my question is how to go about figuring how much we should rent after doing repairs. How do you come up w/those numbers?  I'm not quite sure how to put that into the rental calculator because it won't add any after repair value to the property itself.

That makes sense, thanks!

Hi Victor,

I really appreciate your input on this with your knowledge cause I’ve been struggling. Our strategy right now would do owner occupancy (conventional loan w/ 5% down) for about a year or so then turn into LTR in nicer neighborhoods-all the houses are around $250k right now. I struggle with the .65 or so rule your describing because rent won’t even cover the mortgage.  What’s your take on that and what would you be looking for in this situation?   Thank you!

Hi Spencer, hey everyone.. I’m exactly in the same boat.I have the exact same goal as you- do some flips for long term rental capital. Goal is to get my first investment this year. Right now saving up reserves- unfortunately every hard money lender I’ve talked to says I need to have $50k after closing which is crazy. There’s a great meetup I’ve started going to called Pints and Properties, look it up on Facebook. Hope to see you there and connect

Well I was looking forward to coming out but I signed up for the BP rookie bootcamp and tonight is orientation and I don’t want to miss it. Maybe next time!

Anyone having trouble finding and having progress with their flips due to contractors taking too long or not getting back to you? I wanted our first RE investment in the next few months to be a flip but I’m hearing bad stories everywhere- being charged way too much, not enough labor , contractors taking forever due to shortages, etc…. Anybody experiencing something like that right now?

I’ve signed up! Ready to get started! 🙌

@David Edwards I’d be interested in just hearing your experience with the building process. I’ll try to get some questions together so I’m not taking too much of your time. Thank you for the offer!

@Lauren Cutchen yes we are thinking of using the VA land loan , I'm just really trying to figure out if building on it, or getting a modular home on it and then refinancing under a conventional loan and sell would be a good idea? We're also thinking about just making it a rental property if it's in an area that would work..

it’d have to be an acre at least and we’re looking all over TX at the moment. That’s a good point about the taxes as once it gets developed it could get pricey. 

Hi there, we have an opportunity to buy raw land with VA loan . Thinking a good strategy for us would be buying land and building and refinancing then selling or renting. Anyone else do this and have any advice or tips?