All Forum Posts by: Cole Raiford

@Adrienne Donner nope, I would not. The cost is too high for that rent. On your calcs the expenses seem low on several of them. You don’t show closing costs. Your interest rate is probably too low for an investment property.

@Erik Perotti I’d say don’t buy a house that has negative cash flow. Don’t ignore repairs, vacancy, etc. to convince yourself that it can work.

@Michael Pilolla price is too high and rent is too low to brrrr it.

@Melba Chambers congrats man!

@Sean McCluskey I'm mid refi on a SFH investment property at 4.75 fixed for 30 years. It might have ticked down a bit since the fed rate cut and China issue, but not much.

Honestly, if the interest rate being a 1/4 point different one way or another is an issue then that’s a problem you need to think about. We’re talking very small dollar amounts for these small rate changes.

@Christy Osterkamp well the tag for Jay didn’t work, but look him up.

@Christy Osterkamp you need to ask @Jay Hinrichs for advice. He is very familiar. I’m from Mississippi but not from Jackson. With what I know, I would not invest in south Jackson.

@Keith Homstad I invest in Mississippi and I buy off market. I see a house every few months on the mls that would work, and I’ve offered on a few of them, but every investor in the area sees them and a bidding war ensues. I’ll gladly let them overpay and hold off for a better deal.

If you are looking for cash flow, I suggest you target a market in the southeast or Midwest. These markets aren’t great for appreciation though so it depends on your long term goals. Brrrr is harder to pull off in appreciation markets (west coast, Denver, Phoenix, etc.).

@Jerry Padilla that is correct. They can hold the payments for the contractor and disperse it later if that arrangement works better for you.

@Tim Bradley In a great deal you can get it all back out. In a more realistic deal you might leave some money in. It's all about acquisition price for brrrr. If you get great off market houses you can probably get it all out. MLS is unlikely to provide this in the current market. You need to be all in for ~ 70% of ARV to get all capital out on a 75% refi. The 5% difference accounts for fees, carrying costs, etc beyond just the rehab. Personally I am fine leaving $5-10K in a house because I have the money to allow for it. That would be an issue for someone with limited funds so you have to assess your situation. The rehab could go over budget or the appraisal could come back low, so the potential is there to leave money in the deal even when it looks great on paper during your upfront analysis. Just be prepared for that - hope for the best but plan for the worst.

As far as the seasoning period, you can get around that by using the delayed financing exemption. You can start this refi the day after closing. You can refi 75% or ARV or 100% of HUD. If you want to pull your rehab cost out via delayed financing then just have the rehab bid by your contractor and have the title company add the cost to your HUD. Only do this if you have a solid contractor that you trust to pay up front, as they will be paid directly from closing before doing any work.

Happy to discuss further if you want to PM me.