All Forum Posts by: Armando Montrond

I wasn’t going to put 50% down in cash. The seller is saying he will only hold paper if someone brings 50% so figured I could finance that 50% and then seller finance the other 50% but sounds like doesn’t work which I see why just wanted to validate my thoughts. 

I am trying to work a seller finance deal, they are only willing to do a seller finance deal if someone puts 50% down. I am not sure if this is even possible or not but the property is 525K. So i was thinking I Could have a P&S drawn up for 262500 (50% of value) go to a bank and finance that part then have them do a second position or just a note for the other half? I hope this makes sense what I am asking, since on the P&S were saying its only 262.5 but im buying it for 525

TLDR; Can I have a purchase contract for half a homes value but really buying the full price with the seller taking a second position on the other half that isnt on the P&S

Hi there, anyone have a contact for someone with a snow plow that could do my property driveway here in Worcester? I was so close to making it through the winter without having to buy a snow blower 😂 but looks like were supposed to get 6 inches tomorrow and possibly 5-8 on Friday. Driveway is probably about 150 ft long but about as wide as a plow so it would be a quick push in and out. If you have any and want to DM me that would be helpful!

The $400 was an estimated expense, my ultimate plan is to do an MTR. But even with 0 in those expenses it’s still Not cash flow positive 

Quote from @Drew Sygit:

@Armando Montrond you are making the rookie mistake of paying retail prices.

As @Bob Stevens alludes to, that is NOT true investing.

Many newbies are paying retail, but they are not cashflowing.

Start networking with other local investors and learn true investing:)

 lol this not about paying retail or not, this is simply me trying to find what price range for a single family in a given market and a given rental rate with the given expenses you would need in order for a property to cash flow. 

so in Raleigh, NC even if I went off market, I would need to find a property for under 85K that needed no work with 20% down and rental rate of 1600 in order to see a positive cashflow of $16 https://www.biggerpockets.com/... here is an example report. not to mention the avg home sale price in Raleigh is 400K.

Quote from @J Scott:

Can you share the BP calculator report for an example property you're looking at?

J, here is an example report I am looking at. Along with the zillow of the actual listing. https://www.zillow.com/homedet...

 https://www.biggerpockets.com/...

As I mentioned above this is just to see what price range cash flows. This property is 365 ( i am merely looking at this as a test to get numbers for the area) the average rent in Raleigh is 1600. This report shows it being rented at 1600 and me offering to purhcase at 150 (almost 200k under asking. 

I just want to reiterate, I was trying to find what price range in an area will cash flow and from what I have seen, you can only get a single family to cashflow under 150K and the rent would have to be astronomically high for the area

Quote from @Clayton Silva:

For an investment loan, I would typically have the following based on what you put:

Rate: 7.5% (conventional) or 8.5% (DSCR)

Down: 15%-25% depending on Single Family vs Multi Family, or conventional vs DSCR

Vacany: 5% (depending on market). If you have more than 5% vacancy in your market right now, you likely need a new market or you are charging too much in rent

CAPEX: 10-20% (I lump repairs and maintenance into CAPEX and some spreadsheet warrior will probably yell at me in all caps for it) but this number is dependent on the age/condition of the property and I keep a CAPEX max balance. Example, once my CAPEX account gets to $10,000/property (hypothetically) then I would stop contributing to CAPEX and that money would be extra cashflow.

Utilities/trash: $0 pass it to the tenants

MGMT: 8-10% (I use professional management personally, but I know you said you would self manage.) I would still try to underwrite it as if you were going to pay property management, and maybe just pay yourself the management fee, but it gives you the ability to hand it to a manager down the road.

This may not make your analysis make sense which means it may be time to move to a different market or start getting really aggressive with your offers.  Hope this helps a bit though!

Thanks for the breakdown and those are good ways to look at the numbers, but what I was asking was that pretty much for a single family to cash flow you need to be buying a property under 150k. If the avg rent for a 2br in the country is just under $1400, and I know its much higher in other places but that math says you need an extremely cheap house to make the numbers cash flow. Doesn’t matter the market. So I can’t go to an area like NC and start throwing out 100k offers on 250k+ homes

Rookie question here, Ok I know cashflow is pretty tough to come buy now a days, but I have been putting some deals through the rental property analyzer (single families) Here is what I am putting in for parameters. These for the most part are not real numbers I am just trying to find what is the minimum i need to get cashflow positive 

6% rate with 20% down, 

8% vacancy,

5% capex 

5% maintenance. 

400 for Gas,electric,sewer,trash 

Im doing no fee for property management right now as I will be managing this myself. 

I am looking to do MTR and inflating the rent to 2400 a month

I am finding that in order for anything to cashflow positive with these numbers, I would need to find a property with a purchase price of around 150K or less. I know SF will not cash flow as much as MF, but it cant be that in order for anything to cashflow I need an extremely cheap property with an absurdly high rental rate. What am i doing wrong here or are the numbers just the numbers and if I want cash flow i need to find something cheaper than 150k or do a multi family?

Quote from @Ryan Normand:

Reducer moulding. You can usually get matching colors from the store you bought the lvp at or make your own custom piece like Andy said (assuming you have the woodworking tools and experience to do so).

Not sure why you didn't run your LVP over that white transition tile. Most reducer moulding won't cover a 4 inch gap like the one in the photo, so you may end up having to make your own custom moulding. Just be prepared to cut down your door so it still closes.

If it were me, I'd just pop the tiles, float the floor, and run the lvp clean through. Yes, tile demo sucks, but imo in the long run it's worth it to have a cleaner looking install and no tripping hazards.

😅😅you know what…I didn’t even think about running the LVP over that white tile instead of stopping at it lol good things is the floor isn’t installed I was just laying it out to see how it would look! I’m going to do that! 

Hi, not sure where to post this exactly (there should be a DIY category 😅) but I am installing LVP over tile in my bathroom. I don’t want to rip up the tile cause I did it in the other unit and that was a nightmare. The one issue I’m having is the flooring is going to be about 1/4 inch higher than transition strip between the bathroom. I’ve included pictures. Does anyone have suggestions on what to do here? This isn’t the installed floor I was just laying it out to see the look.