All Forum Posts by: Billie Miller

Hi all.

I'm looking for a VA lender licensed in CO that has experience with alternative credit. We are selling a flip to a vet with an interesting work history that we are trying to get around. Anyone know a broker with creative VA loan experience???

Thanks!

HI all! Looking for agent recommendations for a family member who is looking to buy a house in the south east part of Phoenix. He's not looking for an investment, just a primary residence. 

Thanks!

Billie Jean

Hi all,

I have an all brick construction duplex in a highly desirable area of North Englewood on South Broadway. Close to the Gothic Theater as well as downtown Englewood. We bought this as a house-hack and it served us well for a few years now. It is fully occupied, leases are up spring of 2019. More details below.

This is currently NOT listed on the MLS and we are looking to move this off-market. I am the listing agent and owner - wholesalers/birdogs add your fee on top.

Feel free to message for details, but email would be best. [email protected]

Thanks!

Tenants pay gas/electric

W/D in each unit

Upgrades we've done:

Roof in 2015

New wiring - 2015

2 new furnaces

1 new water heater

New windows

Upstairs- new kitchen, flooring, paint, fixtures, partial bathroom reno

Downstairs- new paint, flooring, fixtures

Thanks for the cap rate insights!

@Sam Grooms, my husband used to be a lobbyist for the multifamily industry...until he realized that's the wrong side of that industry. It's much more lucrative to be the people paying the lobbyists :)

Congratulations! My husband just quit his job to syndicate apartments (and by that I mean underwrite deals all day every day...).

Would you be willing to share your thoughts on your exit cap rate? Not so much the specific numbers but your assumptions in forecasting it? I realize that the entry cap rate on a value add doesn't really mean much. But since you're looking out 24-46 months, how did you do that?

Our method (not all that scientific) has been to look at what similar, stabilized properties are trading at and inflate that.5-1% (depending on the market) just to be safe.

We've done a few condo and townhome flips. Obviously the HOA requirements for these would probably be a little more strict than subdivisions with HOAs, but it hasn't really been a huge issue. There are additional things you have to do due diligence on, like remodeling requirements, rights of first refusal, HOA financial health, etc. We put up with it because we feel there is a little less competition for properties with HOAs. Other investors may automatically cross them off their list which leaves room for those of us willing to take a few extra steps to get some deals.

If you are doing an FHA loan, will you be paying points? I don't think you typically pay points on FHA, so that might be some upfront cash savings.

Have you called other property managers to see what their opinions of the property and rents in the area are? Also, make sure to see a rent roll so you can double check that they really are renting for $600 and $800.

 Awesome! I lost some sleep over that one.

It was my understanding that at one point the House plan subjected income from rentals to FICA. That is not in the final bill, correct???

Are you saving a portion of your monthly rental income for capex, vacancy, and repairs? If you aren't, you might want to consider it. That way, your tenants will be building up your cash reserve for you. 

I would buy another property before I would pay down debt, as long as my rentals are saving money for themselves. If I have a decent emergency fund, I hate having money in the bank. With the rate of inflation compared to savings rates, you're basically paying the bank to park your money there.

Everyone's risk tolerance and definitions of a decent emergency fund is different though.