All Forum Posts by: Craig Anderson

Thank you that is good to know. 

From my understanding, you need cash on the spot. You would most likely need a hard money loan (if you don't have the cash) prior to the auction and have the amount on that day. 

Great thanks!
 

HI there Rick,

How did you get $32K at closing? Was that in the hard money loan already when making this deal?

The best advice in my opinion, if you can, is to live in one of the units. Then you only have to put 3-5% down depending on the type of loan that you get. Then, in a year, you continue renting out the rooms as you move out, and rent all 4 units, and you go for the next property.

This gives you cash reserves in case something happens. Also, the tenants would be paying your mortgage and you're cash flowing.

It depends on what you want to do. You can get into construction so you can learn how to rehab, you can work with a lender to learn about loans, you can work with a title company to learn about loans and closing costs, you can work with a local flipper, you can work with an investor to see what they do, and there are many more jobs out there to learn. 

Hope that helps!

I'm pretty new on BP and was just wondering if anyone else has noticed the same thing lately.  After I do some research and input numbers for properties, places that have been sitting on the market for a long while, I noticed that within a few days they are now "pending" or "sold." Coincidence? Who knows?

I just type in on Google "rent vacancy rate in BLANK city". For the city that I was looking at, I also was able to find rent rates for single and MF homes throughout the whole area.  It's a definite time saver. 

Well, based on the numbers, you would have a negative cash flow of $80, ROI of only 4%, and .5% of the 2% guideline. I wouldn't do this deal unless you can find a way to get better numbers on all 3 of those areas.

So, should the purchase cap rate be in the 4-8% range and the Pro Forma should be 10%-15%?  Or, is there another way to look at those numbers?