All Forum Posts by: Chad Meyer

Thanks @Mark Jones!  I've been thinking about paying for the membership to have access to everything and attend meetings.  Glad to know that you feel it's helpful.  

Thanks @Michael S. and @Ernesto Hernandez!  

Hi all, I wanted to introduce myself. I'm a new member here, and my wife and I are looking to jump into investing in the Indianapolis market. We currently live on the north side of Indy. I've been studying and trying to research investing the last several months - reading tons of books and obviously found BP which is a huge resource already. Wholesaling, buy and hold and flipping all intrigue me, but obviously I need to pick one and focus on it when getting started. We're going to try to attend more of the local REI meetings to get to know people before we dive in. I'm a local Realtor already and our team does roughly $30M-$35M+ each year, so I have a good lay of the land as far as locations/areas go. Obviously, investing is an entirely different ball game. I'd love to connect with folks, and hope to run into some of you at local meetings.

@James Ma - thank you!

@Bill F. Thank you - that's exactly what I was assuming.  I'm on the right track then to include all that in my calculations and truly list all that under the 'cash to close' number.  Thanks!

@Henri Meli Sorry if I'm making no sense here. I kind of rambled the more I typed. My main question was: When I'm looking at numbers (and say I'm targeting a MFU listed around $80k for instance), if I pay for the multi-family unit using a HELOC from my primary residence, do I load that number into my calculations as "cash to close?" I'm paying for the entire amount of the home using the HELOC.

Example:

Purchase price:                      $80,000

Cash to Close:                        $80,000

Monthly Rent:                              $900

Expenses:

Taxes                                          xxx

Insurance                                  xxx

Utilities                                      xxx

HOA Fees xxx

Lawn/Snow

Vacancy

Repairs

CapEx

Prop Management

Mortgage

Hi all, I'm just starting out here and attended a few webinars thus far. My interest lies in buy and holds so that I can rent out a multi-family unit in the near future for my first investment property. I'm trying to get the hang of crunching numbers and what to look for. I am looking at essentially using equity within my primary residence (HELOC) to purchase whatever MFU I go after. When it comes to "cash to close," do you consider the HELOC amount (say $60k or $70k as my purchase price & HELOC amount) as "cash to close?" Typically HELOC purchases are treated as cash come time to close at the title company, but it's not like I'm dipping into my savings account to purchase. I just want to ensure I'm getting my cap rate and cash on cash analysis correct. Trying to steer clear of using 25% down (from HELOC) and then finding a 1st mortgage (I'd have two mortgages on the property then) as I feel it would eat pretty quickly into my cash flow, obviously. Thanks for any assistance! Chad