All Forum Posts by: Clayton Smith

 Bill, 

Came across this thread and wondering if you went through with this plan?

Hi, 

I am looking for a calculator or formula. 

I am hoping to find a calculator that considers the delta of the monthly payment pre refi and post refi to determine what ROI I will need to get on the money pulled out to determine if it is time or I should wait. And since this is for a refi and not sale I need it to factor in the LTV amount and closing costs to determine how much I will actually recieve and the closing costs. I am assuming I will only be able to get a loan for 80% LTV.

For my real life example. I have a great interest rate at 3.25% 30 year fixed on the original loan. Average cash flow currently $223 a month. Using the standard ROE it comes to 7.2%. Not bad but I can beat that. 

Current ARV $165,000

Current loan bal $118,071.91

Current P&I payment $517.26

Assuming I can get a loan 80% LTV loan at 5% rate with a 30 year am.

After pulling out some equity and assume $3,820 in closing cost I will get a check for $10,108.09 and it will add an additional $191.34 to my monthly payment. 

I am not considering cash flow just striktly the difference in the old payment and new payment. It will take me 53 months to equal the cash out check. But considering it actually cost $13,928.09 to recieve $10,108.09 I will need my ROI will need to equal total cost. Using the rate function in excel I will need to make 134.72% total ROI over the 53 months to "breakeven" with an annual rate of 30.6% per year.

When I calculate the ROI I am more or less considering the increase in payment as negative amount every month to get my number. Since it is costing me money every month.

Is my math / thinking correct? 

Any comments would be appreciated. 

They consider anything less than 30 days a STR.

I purchased a portfolio in Tuscaloosa in October of 2021 that had one section 8 tenant. So I have only been dealing with them for a few months. Overall the experience has been ok but not great. From what I have been told it depends on your case worker. If you get a good one you are golden if you get a bad one you will have trouble. It took me some time to get my paperwork over and accepted so I did not get my November rent payment. I started getting my payment in December but I just now got the November payment this month. Every time I tried to call it I would get transferred around to different people and couldn't get anything done. That was frustrating. But I did tell them that the rate was below market and they went from $670 to $895 a month without much issues. That is the bottom end of the comps but it is understandable. 

Most of the property managers in Tuscaloosa are built around the student rentals and don't like to deal with section 8. But you may be able to find one that will work with them. My PM manages mine but I only have 1 section 8 in my portfolio and I didn't give him a choice. 

 Hey Kyle, sorry I missed this. 

Send me a message sometime. I always enjoy talking real estate. 

Hi, 

I am also an investor in Tuscaloosa and wanted to introduce myself. I would love to connect and can answer any questions. 

Are you looking for turn key rentals or something with more value add? 

I have been keeping up with all my rentals with spreadsheets and I am starting to outgrow it. I have set up quickbooks to run my flipping business. But it doesn't look like quickbooks can give me everything I want as far as metrics. 

I am looking for a software to help manage my portfolio. I want one that will keep up with my profit or loss for each of my properties and will give me an snapshot of my overall portfolio with ROI and IRR. I would like it to be able to track it by the amount left in a deal not just purchase price if possible. Also, would be great if I can categorize my expenses and track cost based on vacancy, maintenance, cap x, etc...

Any recommendations would be very much appreciated. 

Thanks again Max. 

Is QBO set up to measure the actual ROI on the property or would that need to be down separately once you've gathered all the information from QBO? I am really needing to fine tune some of my maintenance, CAP X and vacancy numbers to help my underwriting when making offers.

Hi Max, 

I have been investing for just over 8 years and have been doing my book keeping using excel. I am used to tracking costs with my job so it has not been much trouble for me. However, I am starting to get more and more properties and want to transition to an online software. What software would you recommend? I want to be able to track both my rental houses as well as flips. I also like to keep track of my monthly principle paydown and current equity. 

Thanks 

Clay