All Forum Posts by: Connor Rice

@Dion McNeeley HI!

the rent numbers I used were conservative and I am actually hoping to get about 5% more than I calculated. See details below 

-2/3 upper/lower duplex in a B class neighborhood.

-2 Car garage and full basement for storage

-2 washer and 2 dryers in basement.  (shared basement)

-It is about 4 blocks from train tracks and about 6 blocks from the interstate.  It is a desirable established neighborhood about 8 minutes from downtown Milwaukee so noise is to be expected.

-Vacancy could actually be carried at about 1% for this neighborhood. Again, very desirable area.

-I am actually using 3.5% down payment owner financing and house hacking for 1 year.  I crunched the numbers on it as a rental property after I move out and keep the land contract in place until the 6 year balloon payment. 

-I will continue manage myself when I move out

-It is not shown on the report but I am purchasing it below market value.  The property is actually worth about 255k minimum (maybe closer to 265k).

I am not sure how to calculate my overall return or IRR but the equity defiantly makes it a better return. With all that being said, would you purchase this deal for the low cash flow?

View report

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

@James Peluso what podcasts are you referring too? I’d like to check them out

@Conner Sparks what COC return to you typically aim for? I thought this was above average COC return.

Hi All!

I am looking to purchase a duplex that is rented out with tenants currently about 4 months into their 12 month lease. I would like to move in and house hack using and FHA 3.5% down loan and then use it as a rental property after 1 year. I have a few questions on how to tackle this deal

-Can I offer cash for keys to get the tenants out so I can use an owner occupied FHA loan? What other tactics could I use to get the tenants out?

-Can I Refi into a conventional mortgage after roughly 6 months if I decide to move and keep it as a rental? I'm assuming I would just take a hit on the interest rate but it would still be cheaper than paying PMI forever with the FHA loan. Would interest go up about 1%? (I'm currently preapproved for 3% for owner occ)

-If I am unable to get the tenants out so I can move in with an FHA owner occ loan, should I try to see if he would do seller financing? How would go about Refinancing out of the seller financing? Would I refi into a conventional mortgage, and if so do I have to have 80% equity in order to do so?

The report attached has my rental analysis as a rental property, not a house hack.

thanks!

View report

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

Hi team,

I am a new investor and I have landed a great off market SFH lead. I plan on purchasing it and doing a live-in flip. I need a short and simple purchase agreement that would be similar to a cash offer agreement template. I will be securing financing and plan on purchasing "as-is" with only a financing contingency in it. Would I use a template similar to my states (Wisconsin) FSBO contract?

What would happen if I did the BRRRR deal as an owner occupant Using private money. This would eliminate the rental part of the method and I would cash out refi for a down payment for an investment property. Thoughts?

Thanks guys @Aaron Montague @Maggie W.!! 

Yes, my parents have been renting for 20 years and their landlord wants to keep them in the house (one side of the duplex) and sell it to me for a heavy discount.  I am purchasing with private money on a 6 month note.  The issue is that my parents are grandfathered into rent and are paying way below market.  The main goal of this deal is to keep them there so I am willing to cut into cash flow if I get a good enough purchase price to gain instant equity.  With that being said, it looks like I am cash flowing 292 dollars post Refi but I do need to add in 10% for Management.   I also cut my vacancy in half to 2.5% because my parents are there.  What are your thoughts about buying a minimal cash flowing property for this amount of equity? 

View report

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

View report

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