All Forum Posts by: Brandon Kalker

@Jon Kessler

Thanks for the reply, it seems like a good deal I just wanted some expert opinions on it.

I'll be taking over a month to month lease that on current tenants paying the 750 but I don't want to go in there and fix it up until I can have new tenants that are willing to pay more..

I'd like to do a normal conventional but my question is where will I get the future money for the rehab?

I'm a little confused on how to make this work

Purchase price $50k Turn key 3 bed 1 bath rental at $750 monthly on a month to month, the area averages 850 - 900 rental

These are the numbers I got

Rental income $750

Tax (Virginia) 1,111 Annually 

Insurance $83

Vacancy $40

Repairs $100

Mort age (10k down on a 3% interest) $169

Total month expenses - $584

Cash flow - on the low end 750 $166

ROI

Down payment 10k

Closing $1,500

Rehab 15k

Investment $26500

Annual Cashflow 7.5% 

Take note this is on about an acre of land and Iin the future would be able to reaise rent easily $100 or more

Should I pass this up or move forward? 

Thank you all,

Brandon K 

Hello,

Lately I found a great contractor who's worked with investors and flips in the past. He brought a partnership to my attention. My question is what would the terms be? I'd understand if I was doing flips we'd partner on the property once it was soled and split the funds. The issue is I want to start a portfolio of rentals.

What would be the best way to suit both of our interests? I don't think offering equity in the property would work for me because I'd be refinancing and still owe on it. I believe having a partnership would benefit us both because we would both be in it for the long game and I wouldn't have to worry about him completing the project as fast as possible for the payout with leaving things unchecked.  

Has anyone been through this before? any advice would help.

@Lindy Pond Thank you so much for reaching out! I believe I've signed up with a few of them. Any you would recommend? I would love to connect more with you!

A little about what I'd like to do - Purchase and rehab my first property with a Fannie Mae homestyle then of course refinance so pretty much utilizing Brrrr.  After all the research I've done this seems like this best way to get started being that I don't want to owner occupy. 

Recommendations would be extremely useful as I want to make this air tight so I can move on to my next property. 

@Sarah Stamper I as well Sarah, looking forward to forming a strong team with like minded individuals in my area

@Xavier Williams Yes I am located in Richmond VA

If you know of anyone in this area that you can reference that would be greatly appreciated. 

Hello,

I'd like to start a forum of investor friendly RVA agents for my personal use and the use of others. 

Personally I'm looking to start a portfolio of 10 house in the next 2-3 years and would love to have a team I can trust.

Please comment down below!

@Matthew Porcaro Thanks for that! I'm looking into the Fannie mae. It seems a lot of investors has had success with it. I've brought my purchase price down to under 100k so I believe that could be doable. 

@Andrew Postell Thank you for the great advice! I've went ahead and contacted a local REI investor and I'll be attending some meet ups once this pandemic blows over.

@Matthew Porcaro Yes I would use the 203k if I was planning on owner occupying. As my description to this forum implied I am looking for something alternative to owner occupying rehab loans. Thanks.

@Paul Welden Thanks for that list I'll look into each of them. Is it safe to assume each one of those loans have close to a 20% down payment? 

@Andrew Postell That is the key! I figured that out lol I wasn't sure how refinancing worked before but now I have a clear understanding of how to obtian "seed money" which brings up a couple other questions.. 

I know hard money lenders can be very risky.. especially with someone that does not have any experience in rehabbing at all like me. I looked into the 203k loan as well which is safer but I'm not planning on owner occupying.. also after rehabbing I read some banks won't let you refinance right away? 

Can you suggest a way a newbie like me could start his first Brrrr without being at extreme risk? 

@Andrew Postell I do understand but it brings up more questions haha. I was under the impression hard money lenders require "points". Also after you buy & rehab with the hard money how would you rent it out still owing the hard money lenders monthly pavements with extreme interest rates without going negative?