All Forum Posts by: Geoffrey Jones

@Ross Schneider  Schneider, I look for a cash flow of at least 300-500 per door and at least 40000 equity in the deal. I also look at where there are great school systems in the area. Parent who are well educated will always want their kids to be educated too . Property taxes are currently around 2200 year for both properties and both properties look like 2000 month rent each. 

@Paul Ewing 
Here are the comps that I found

1211 Westgreen Blvd Katy TX 7745
http://s3.amazonaws.com/com.freedomsoft.production...

21530 Greengate Spring TX 77388

http://s3.amazonaws.com/com.freedomsoft.production...

Please let me know if these comps check out fine.

I have under contract to purchase 2 properties in TX. 

Here are the two properties

21530 Greengate Spring TX 77388
ARV: 200000
Price: 140000
Repairs: None
Rent: 1800

http://www.zillow.com/homedetails/21530-Greengate-...

&

1211 Westgreen Blvd Katy TX 7745
ARV: 210000
Price: 135000
Repairs 15000 to make rent ready. Pure cosmetic work.
Rent 2000

http://www.zillow.com/homedetails/1211-Westgreen-B...

Both look like they have an anticipated rent roll of about $2000 month each

I have a hard money lender ready to do the deal and my end goal is to refinance with a portfolio lender in the area at 80% LTV immediatly. This will help me recoup most of my costs of acquiring the properties.

Hard Money is requiring
3% Origination Fee
2000 in other fees
400 upfront for appraisals

I have comps that I have pulled from the MLS for both and it looks solid but again I want to verify everything. I have the cash for any repairs needed if I need to make fixes before receiving my draws.

Please let me know if you see any pitfalls in this deals. Please let me know if the areas are solid locations as I believe they are. Also Is there anything I should be careful of for any one experienced in these areas?

Thanks @Curt Davis, thanks @Cameron Ellis. Looks like you were right. My comps were way off on this one. Moving on to the next deal. Wish me luck.

Also thanks for all your help in advance.

Rent Comps

https://www.rentometer.com/results/OKswTAJAyKY

Sold Comps

http://s3.amazonaws.com/com.freedomsoft.production...

@Curt Davis:

@Curt Davis, What do you think of this deal. Is it something I should pursue. Are my numbers correct? I have 10 days to make a final decision on this one. It looks like most of the repairs and fresh paint have already been made, I'm just not sure if my comps are correct. Also in terms of neighborhood would this be a better resell to wholesale, retail or buy & hold. I plan on refinancing immediately after acquisition to recap my costs. Also from the pics I have it does look like a 4 bedroom 3 bath and has a very large backyard and front yard.

Also as per my research it looks like I can get 1800 - 2000 in rent for this? Let me know what you think.

Here is the property on zillow.

I have it locked up for 180000 and posted it back up on zillow for 210000

http://www.zillow.com/homedetails/7684-October-Ros...

Here are the 3 comps I found

I found a property in Memphis offered up by Fannie Mae. It is now under contract. I have a 10 day inspection on the property.

4 Bed 2 Bath
Neighborhood: B+
Crime Rate: Safe
Schools: Under average
Size: 3400 sqft
Original Listing Price was 225000
My Accepted Bid was 180000 after heavy negotiating and bidding by my realtor.
Earnest Money Deposit: 18000

Repairs 15,000
Most repairs were already done
Terms: All cash offer

I have found 3 properties around the same size in 3400 SQFT+- 10 years construction date that are less than 1 mile away that sold at the following prices in the last 6 months.

$290000
$295000
$345000

However, I still see that there are some houses selling in the neighborhood on Zillow for about 170000 - 225000. (I'm not sure if they need repair or not)

I am roughly estimating that my ARV is 290000. I'm taking the lowest just to be careful.

My plan is to 

1. acquire via hard money with 10% down rent it out and then refinance to get all cash that I put in the deal out via a portfolio lender or delayed financing. Please let me know if my plan sounds solid.

Exit plan: Wholesale if I cannot obtain financing (However I have excellent credit and income to back it up and have cash reserves in the bank).

I have bought lots of property before retail :(, but this is the first time I am trying out a strategy like this with such a good deal and lots of equity. I'm trying to make sure I cover all my bases.