All Forum Posts by: Brady Pasemann

Marketing thru Zillow/Trulia/Hotpads + Avail + CL and a sign in the front yard.  The rent average is 1500-1600 for 3/2 homes.  The rents are high, due to shortage of housing and it's a college town.

The costs are about $1556/month with loan payment, taxes and insurance. Debt is $1140 per month(which I plan to reduce) from the HELOC. This is a 10yr amortization. Insurance is $116 per month (house and umbrella). Assuming taxes are about $300 per month, could be less. I have not paid taxes yet and they will adjust. Looks like 51 months (80K/$1556). If paying off is not a good option, then I would definitely refinance to get a lower monthly payment.

Hello all,

I finally bought my first rental with cash and my HELOC. I am very excited, fixed it up and had it on the market to rent...now with the corona virus, I am trying to figure out the best option is with it. Currently it is not rented and I don't see it renting for a month or two, or more. I purchased for 140K, a great price in my area and was worth 200-220K (pre-corona). I took 80K out of my HELOC and used cash for the other 60K. I put about 10K in cash to purchase and fix up. Currently it's not rented and just sitting. I have enough cash to pay it off, but that would not leave much in my savings. I am wondering what the best option is, at this state in the economy. The house I live in, is also paid off, with a $125K HELOC. I have been waiting on a crash to get into rentals and still want to purchase rentals when prices fall quite a bit. I not sure what to do in my situation.

The options I see are:

1. I can pay off and have no cash in the bank. My current home is paid off and our budget expenses are pretty low. This would give us two paid off homes. I would try and get a HELOC on this home as well, for future investments.

2. I could refinance, pay off the HELOC and have a traditional or investor mortgage with low rates. This would give me about 100K of extra cash in my bank accounts. Not sure how the banks will get thru this and if there is a risk of losing your savings in banks.

3. I could sell, get out of it, pay off the debt and have about 150K cash in the bank.  I really, really don't want to do this.  This house is in a nice historic neighborhood, one of the best in my area.

4. Do nothing and ride out the storm and rent when the market comes back.  I do plan to reduce my asking rent and get it rented in the next month or two.

Thank you in advance

Brady

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello,

I am a newbie and finding it hard to get good deals in San Marcos,TX.  I found this duplex, which seem like a decent deal on the surface, but how can I turn it into a great deal.  Asking price is 189,900 (I put 179,900) in the calculator.  The current rents are $1395 ($570 2 BR, $825 3BR).  These are leased until May & August of 2019.  I put $1700 in the calculator as an increase.  Currently with the 179K price and 1700 future rents, it still shows a negative cash flow.  Is there any way to make this a deal I could buy?  I could offer lower, but not sure how much lower would be viable.  The rents could maybe go a little higher, but the place needs some work.  Any help would be appreciated.  I plan to go look at it in 2 days (Sunday).

thank you

brady

@Brandin Huber I would like to touch base sometime and discuss the SM market and the ones around here.  I want to invest, and would like my first one to be fairly close to home and to earn a decent amount of cashflow.  I am leaning toward multi-family, as the numbers would be better.

thank you

brady

Thank you @Jody Schnurrenberger I've heard that many times about not doing the estimate, before just asking. I tried to do as much as I could before asking any questions. It seems to only cashflow good if I pay everything in cash, but then the ROI is low.

Hello Everyone,

I am looking to see if this is a good deal and how much a full rehab would cost for that size of house.  Assume some foundation, electrical, plumbing included.  Maybe tearing off carport and redoing.

I came across an old 2/1 house that needs a complete remodel & gut.  I don't know if it's a good deal, seems to be, but would like some professional advice.  I have not purchased an investment property yet and have some knowledge of construction, but not to this level.  This is in San Marcos, Tx...a very strong market currently and hard to find any deals.  I'm looking for properties with good cash flow $3-500 range.   If paying cash (which I have), it seems to cashflow well, but costing me about 80-90K.  If I take out 50K loan/30yr cash flows OK.  If I take out 80K loan/30yr about breaks even, make a little if I manage.  If I sell, maybe make 10-15K.

Pics & Details here:  https://drive.google.com/drive/folders/0B1X_mx6jt3...

Basics

2BR/1BA - Could add a bath with the remodel, but not really add an extra room, unless you added to back of carport, like it is.

854 sqft

built in 1951

no garage, but carport/room which probably needs to be torn off and redone.

asking $65,000...but would offer 30-40K

ARV should be around 100-120K

Class C type neighborhood

any advice would be appreciated.

thank you

brady pasemann

What about selling your home to yourself into a LLC? My home I would turn into a rental and want to put it into an LLC to start my RE business. I want to take the equity and buy a new place I move to. The home is paid off. I would love to update it and charge the cost as expenses to a RE business. Any way to do this? Thanks in advance Brady

Thank you @Christopher Gilbert I will contact Goodwin and Associates as well.  

Thank you Steven, I sent you a PM for the contact info of your colleague.