All Forum Posts by: Chad Pore

@Brian Garrett sorry about that. Got ahead of myself I guess. We are thinking rental would for $650-$700/month and sale would be $65K

Hello All,

So my brother, father and I created an LLC and are in the process of buying our first property. Mostly we plan on buy and hold with the possible flip in there. We have just had our first cash offer accepted! Woohoo.

My question is what may be the best way to decide to rent or flip?

We were able to offer $25k cash quick close, and figure around $10 or less for rehab for rental and probably closer to $15k or more for rehab to sell.

Just trying to see if holding and renting as we look for more property or flip it and use what profit to put towards more properties to start out?

Sorry for the wordy post

Thanks in Advance for any advice.

Thanks Lore and Joe.  I appreciate the feedback as we begin to jump into real estate.

Chad

We live in a small town and are looking at purchasing our first rental property in a neighboring town with population 7K. We are looking at lower cost properties as they seem to rent easier in this community. The property 2-bedroom/2-bath listed for $34K and has a renter who has been in it for more than 5-years paying $500/mo plus utilities.  Being from a small town I have a great relationship with my local bank and will have no problem getting a loan for the property.  The problem is my bank will not do a note larger than 15-years, which increases the monthly payment ultimately affecting the cash flow by about $83/month.  On the 15-year note we would cash flow between $50-$75 depending on final insurance numbers, but on a 30-year not we would cash flow $130-$150+.

I have two questions:

1.  Am I thinking to deeply about this? Is $75 cash flow on a 15-year note as good as $100+ on a 30-year note?

2.  Many of the lenders we contacted will not do a loan for less than $50K.  I am wondering if anyone has any ideas on lenders for a longer term for smaller loan amounts?

Thanks for any responses

Chad