All Forum Posts by: Andrea S.

I am wondering where people get lists of properties in their local markets. I want to get a list of all the small multifamily properties in Northwest Arkansas for a direct mail campaign. Any thoughts or websites would be appreciated. Thanks

This year we want to buy 2-3 properties while traveling full time with our family.  So finding a good turnkey properties will be a challenge and trusting my realtor (grandmother) when she says yes or no.  Does any one else use family as part of your team?  

I would talk to a financial planner to understand all my options. This is were I would start.

2,500,000.

625000. Mutual funds

200K in money market for emergencies.

200K something fun

With the rest I would buy some turnkey rentals all cash for monthly income. And then probably BRR as many as I could, but I like renovating distressed properties and I'm a buy and hold investor. 

Hello we inherited 2 properties a few years ago which really got us interested in rental properties for long-term investments. I would like to get some responses on some changes we are considering making to one of the properties.

Property one has had miner updates and rents for 1155 per month. Is a 4 bed 2 bath 1800sf house.

Property 2 had not been updated in 20+ years and is a 3 bed 2 bath 1400sf house. That currently rents for 800.

Property 2 needs new flooring throughout and new countertops in the kitchen and baths. We are considering also converting the garage into a bedroom. Our property manager has said the bedroom and square footage is what makes the real deferens in rent. The houses are not far from each other and are in comparable neighborhoods and schools. After new flooring and countertops and paint or property manager thinks we could get $890 for rent leaving the garage as is.

We owe nothing on this property and have not put any money into the property since we got it. I was just wondering what are something to consider when converting a garage. Is it worth it? Will it hurt the resale value? 

There is a video tour

https://www.youtube.com/watch?v=epwckKNmn3E

 

Originally posted by @Reed Starkey:

Your thoughts of paying down the mortgage is a common misconception about cash flow. You can make more money with the same money leveraged than you can having that money tied up in equity. Look up the BRRR strategy discussed in other threads and also a webinar.

Basically, look at it this way.  If you can get that property all in for 104k, and refi at 80%. (130k x .80 = 104k)  If you can still make it cash flow, then you get all your money back to do it again.  This leaves you with an unlimited amount of houses you can buy, and an unlimited amount of cash flow each month.

Refinanced at 70% the property should cash flow at about 250 each month after PMI, maintenance, management and long term repair cost. According to the BP calculator. However I would rather have 10 units paid in full bringing in 2-3 time that than 30+ at 2-250.

The rent on this property should be about 1000 a month for the 2 years it will be rented.

This is an all cash auction. We will refinance after it's rented. We can't use a VA loan because we currently have one. Unless we wait to refinance till he retires. We had planned to purchase 4 more rentals over the next 5 years, and living in one of them. Then snowballing all the cash flow to pay them off early. We would rather have more income and fewer units, so I would like to pay them off faster. But should I spend more for the one we are going to live in? I'm thinking NO but I don't want to lose the house because I can really see us being happy there.

All of our other rentals have always been rentals. In my mind it does not make sense to spend more just because we are going to live in it....but it does because we are going to live in it. This is a personal choice, I know. I'm just curious if others look at their primary residents as an investment and treat it that way.

Would you push the budget because you’re going to live in it? I do not want to pay more than market value when all is said and done, obviously. If it was a straight rental I’d like to come out with some equity.

By the way I’m reading this and thanking I sound like an idiot if you could just ignore that I would appreciate it. Thanks

How do you approach a house you’re going to live in.We are getting ready to bid on a property that instead of renting we are thinking about living in for a few year (5-7).It will be a rental till my husband retires form the military (2 yr) and then may become a rental if we move on.The house is in a good location.The neighborhood is older, but the homes are being revived. It’s close to good schools and down town, has a big lot, but is a foreclosure and needs 20-25K worth of work that we can see.After repair value is 130K I’m hoping to get it for 60-85K.Would you pay more for a home you’re going to live in?I do want it to be a sound investment.

We purchased a home using my Father-in- law as the “bank”. We paid him interest(1% bless him). We still had the warranty deed in our name form the title company. We used the aromatization schedule to figure up our interest for our taxes every year.  It worked really well.  Nothing was reported on our credit but we weren't worried about that.

Also and I hope you don’t have to deal with the following.  When he passed away the remainder of the mortgage was considered part of the estate to be divided equally between my husband and his brother. We simply bought him out of his half with the other inheritance. There was no legal paperwork to specify what would happen to the property if he pass, and I could see how depending on your family situation it would be good to see a lawyer to be clear about what happened to the property should he pass.  If I could do it over we probably would.  it was a non issue but it would be nice to have something shoud you need it.

This is just some food for thought

I went with a 10% in closing cost because it's an auction and I could not get good numbers. I wanted to guess high. Their fees section said 4700., and although it said buyers agent is paid 3% from seller. I was not sure about the other agent. Also when you compare price per square foot it comes out at ARV 80000. I went with 75 bc that was the Zestiment.

We also like the idea of not refinancing and just having the property paid off.

800.00 X12 =9600.

Tax and insurance= 2050.0

Management 80.00X12= 960.00  First 2 years only till we live there.