All Forum Posts by: Chase Whitney

Typically you put down 20% -25% for a down payment. so if you want a $100,000 mortgage, youll have to put down $20,000-$25,000. The most important factor is your interest rate. Interest rate will determine how much your monthly payment will be. The higher your credit score is the lower the interest rate your mortgage will be.

Congrats on starting your journey as an REI!

What worked for me as to building credit is to have a secured line of credit, have a parent or guardian apply for a credit card under your name and have them co-sign, they can pay the phone bill with it and pay off the credit card every month and you'll eventually have a high enough credit score where you can apply for an unsecured personal loan and pay the minimum payments every month. Apply for a new credit card every year to increase your maximum line of credit. Sign up on credit Karma, they have tons of helpful tips and tricks on how to build up your credit score. Credit Karma is free and does not require a credit card to sign up.

@Colin M. So I ran the numbers on the BP rental calculator and using the numbers that you've provided these are my results.

With $20,000 closing cost, 25% down payment, interest on mortgage is 5.7% on a 30 year term, 0 points charged, total gross monthly income is $2600, property taxes is $20 monthly, insurance is $125, repairs, vacancy, cap ex, is 5% monthly, management is 10% monthly, HOA is $25, and expense growth and income growth is 2% annual I got...

Monthly cash flow (NET) $664/ mo

COC ROI is 8.07%

NOI is $21,360

50% Rule is $184

IMO I don't think the COC ROI is high enough but the monthly cashflow is good as it meets my minimum of $100 a unit.

@Joe Prillaman I too would like to attend the next one.

@Michael J Scanlon that is a great idea. Ill definitely have to network more out of state.

@Caleb Brown that will definitely be my next book to read. Im currently reading the BRRRR strategy and the magic morning millionaires.

I'm still learning on how to read these analysis. "You have zero income during rehab until rented for 6 months" did you come with this conclusion because of the negative annual cash flow in year 1? How would you fudge the numbers so that the total annual cash flow is not negative?

View report

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

What are some issues (besides the obvious of not being there) results from flipping houses or utilizing the BRRRR method on houses out of state? Is there any way to mitigate any risks/issues if any? Thanks in advance!

I will definitely update my profile. I appreciate everyone for the tips!