All Forum Posts by: Carlin Randolph

@Christopher Sarmiento I like this question because its the area that a lot of investors spend much more money than they have to to get value. So, your best option for the property is going to depend on the State, local area (is it an a/b/c rental area), and the comparable properties that are getting the rent you want with comparable sqftg and layout and amenities and upgrades. Are they offering a Florida room? Will the Florida room open up the place to a view that your ideal customer would say is "worth paying for"? I would offer that a 2br is always going to get more/ month than a 1br but even with that.... Whats selling in the area. So ... where do you get your definitive answer? 1. Call 10 recommended property managers in the area and ask them what rents there. 2. Take their answer and consider your costs.I hope this helps. Best to you and good luck!

@Giovanni Branch you can probably get a thousand or so negotiated off the price of the property especially if you got the estimates for the repairs. If you got the estimates, the seller has only a ballpark what they are. Besides, its not a good deal if there's only an $800 margin on profitability anyway. But if you don't have the money on hand for the repairs, you could request that they discount it from your DP

In this example, by refinancing, the bank will give you $75k because banks will refinance up to 75% of the value of the property. The house here is worth $100k so 75% of that is $75k. That just happens to be the amount you put into the house if you bough itfor $65k and put $10k in repairs

Hey @Franky Juwana I have not done it. I work with other investors that do have these. The buyer is usually trying to get house and has the money but doesn't have the credit so paying into a lease gives them time so they can build that credit. (You can just ask the buyer about their motivations for doing a lease option.) If they are trying to build and eventually buy, they should not stop paying and if they do, you foreclose and evict. Ask local PM companies about the level of difficulty with evicting. There are some reasonable municipalities in NY. So the downside is that you will still have to tend to the house for major repairs. But the buyer will be contracted to take care of things smaller than the roof. They give you a down payment called an option fee for the right to hold the house at the current price for a set time out in the future. They also give you  monthly rent as they would their mortgage which pays into their payment of the house. At the end of the leasing term, the buyer has the right but not the obligation to still buy the house. If they don't, you keep the fee and the rent paid to that point, they move out and you can actually do it again or flip it.

People use the term "cash out" when they buy a property with cash. Because that property has a cash value, the bank will give you 75% of that cash value all at once. If you bought it for $65k and made $10k in repairs, you put $75k into the property .If the property is worth $100k after you have made those repairs, the bank will give you the $75k in the form of a mortgage. A mortgage is where the bank gives you money and if you don't pay the payments, they take the house because it is collateral for the $75k they gave you in this example. 

@Yongjian Pan if you refinance a property where the value has gone up significantly since the origination of the first mortgage and all you put in was a down payment and payments along the way, you could very well pull all of that money out by refinancing the property at a higher property value. But usually this is done when you have 100% equity and the price plus the repairs are equal or less than 75% of what that property is worth after the repair. Then you can you get a first mortgage for at least that 75% and the bank will give you that money and hold the property as collateral. 

@Brian Geiger Delaware or Wyoming. Wyoming has more protections. best of luck to you. 

@Michael J Murphy Jr I don't have any specific recommendations, but I can say my experience has shown me that bigger contractors are not in competition with people who do those smaller jobs. So you might have some success sourcing out mid sized contracting companies and ask them if they have any subs that do smaller, more handyman type jobs. Also you can reach out to other investors who own property in the area to ask if they have any recommendations for the people who repair their properties. Property managers are a great source as well. Hope this helps.

@Paul Feijoo it looks like you forgot to put into the calculator how much the money was going to cost you. You put 0% for the taxes, lender points, and the interest rate. With a hard money, the points will be on average 2% (3% if you're new) and the interest about 8-12%. Plus, look up the taxes for the property and put that in any calculation you make for the property. Also, when you do calculations on how much you will pay out every month, do not forget holing costs. Best of luck!