All Forum Posts by: Barry Wallace

Hi Shaun,

Thank you for that information, I will look into them now.

Hello Melissa,

I currently live in San Diego and my investment is in Tulsa Oklahoma.  I don't currently have any groups.

Hello Bigger Pockets Community,

I wanted to try and get some advise from the group.  I purchased a rental property back in November 2020.  I paid cash for this property so I don't have any mortgages.  I'm considering doing a cash out refinance so I can start the process of reinvesting.  What Im running into is the loan amount minimums that everyone wants. I purchased my home for 20K and its value is around 50K now.  Most everyone wants a minimum of $75K on rentals.  How do I find a bank or lender that would work with me.  Ive checked out the links on Bigger Pockets and the private lenders also have these same requirements.  As a side note I have a very high credit score, little to no debt and self employed.  My companies (3 combined) gross around 1 million per year.  Ive been self-employed for less than 2 years now FYI.

Any help is greatly appreciated.
 

Thank you that’s very helpful. 

So I would have about 50k in equity right now.  

Thank you both.  I can say that the owner rehabbed most of the property last year.  The property is in great shape and it will be transferred with a home warranty.  The numbers I gave myself include a 9K increase per year for additional repairs. When I backed out the additional costs it put me with an additional $665 dollar per month cash flow.  I just want to be safe.  Additionally, this property is on almost 1 acre and the owner has already run utilities to a second pad where he planned to build a second complex.  I'm considering this possibility in the future.

My goal for the property is a basic buy and hold with enough cash flow to cover all costs and pay the building off.  Obviously I could have gone with a 30 year note and dropped my monthly payment but I wanted to pay it off sooner.  Hopefully, 20 years and all my investments will be paid for in full.

Hello Everyone,

So I recently came across a 9 units complex that is completely rented and grosses $4900 per month. The owner is selling all his properties to retire and this is just one of his now. I have listed the details below along with the financials. Can anyone tell me if this is something they would move on?

Purchase Price - Asking $349,000, would consider $320,000

yealy Grosses - $4900 / $58,800

Yearly Expenses ( Property management, Insurance, Maintenance, Utilities, etc..) - $24,000

With financing at 5%/20-year private lender with only $6500 out of pocket upfront, my monthly total expenses would be $4,393.27 with debt service and a total income of $4,900. This gives a $540.39 monthly cash flow while still covering all the expenses and anticipated items. The owner recently remodeled a lot of the building and most tenants have been there for 4+ years and don't want to move. I believe the monthly rental rate on some of the units is low and it would bring it $5400 if increased over time.

I appreciate your feedback.

Hello Everyone,

So I recently came across a 9 units complex that is completely rented and grosses $4900 per month.  The owner is selling all his properties to retire and this is just one of his now.  I have listed the details below along with the financials.  Can anyone tell me if this is something they would move on?

Purchase Price - Asking $349,000, would consider $320,000

yealy Grosses - $4900 / $58,800

Yearly Expenses ( Property management, Insurance, Maintenance, Utilities, etc..) - $24,000

With financing at 5%/20-year private lender with only $6500 out of pocket upfront, my monthly total expenses would be $4,393.27 with debt service and a total income of $4,900.  This gives a $540.39 monthly cash flow while still covering all the expenses and anticipated items.  The owner recently remodeled a lot of the building and most tenants have been there for 4+ years and don't want to move.  I believe the monthly rental rate on some of the units is low and it would bring it $5400 if increased over time.

I appreciate your feedback.