All Forum Posts by: Logan Turner

I have a performing note for sale! 

Original terms: 10 years at 10% $99,000 with 4K downpayment. Monthly $1255.43. Payments began jan 2017. Principle is $94,xxx

Homestead family, 60k annual income. Current / performing. 

No balloon payment but family is paying for someone to fix their credit so they can refinance. 

Pictures can be seen at Zillow 

1117 Golder ave 

Odessa Texas 79761

New metal roof, updated electrical panel, new windows, all 2016. 

$85,900

What is a "good" price to sell a note for? Ex. 95k note, 10 years, 10% no balloon. Performing, homestead owners of house.

I've gotten 4 bids on work for my current rehab/BRRR project. But what are people on average paying for installation of Luxury vinyl plank flooring? (Allure, trafficmaster etc) Now I'm only talking about labor portion. Just to install it over existing tile flooring that is old and ugly. The other half of the house had carpet and linoleum we took out and has a cement slab underfloor. Both should require minimum modifications to lay down. Thanks

Welcome Mary Carlson ! Which part of Texas are you coming from? I just moved to San Diego a few months ago myself.

Alonzo Ramirez Hey there, I have a few rentals in Odessa and midland. Want to give me an idea of the location of this property, and I can give you a good idea on the rental amount. It sounds like your about right, the only thing that has me concerned is the 1600 sq ft size but only appraised for 109k. I typically see the houses in the areas I would be confident in buy and holds, tend to go for 90-110 a sq ft. So if the house is in a lower economic neighborhood, you may have increased turnover. 10 percent is correct on most PMs in the area. No first month rent. Trower will drop price to 8 once you have 3 rentals. As far as deal goes, I think Greg nailed it. Your investing a lot of capital for not a ton of cash flow. With the property age I would be concerned with the maintenance. Definitely not turn key if it needs paint, and a new roof. Usually, insurance company will not touch it and hence you won't get financing if it needs a roof. Have your insurance company go out and check it out. It'll be a free inspection for u.

Nate Barbee couldn't agree more. If you play the timing game you can see some great appreciation. But it's up and down. Long term cash flow is strong. Which part of midland do you buy in?

@Giovanni Isaksen Great post. Thanks for the insights. 

Ideally, i would like to do value add plays until i graduate up to a larger complex which i would hold for  long term. Maybe 1-2 trade ins. But I'm so early in the process, that this could change as well. Goal is long term monthly income to replace my job and allow me to go part time. 

Appreciate the wisdom Jay Hinrichs and David Faulkner It could my perception is not matching reality when it comes to rents and values in the California markets I'm familiar with.

David Faulkner great, thought provoking questions. I'm west coast and I've ran some numbers and you're right people that held on since 08 have seen a rise in their value. Rents have only increased slightly, if any, so who knows the years of negative cash flow or the opportunity cost of having their money tied up. I think you make a lot of great points. Definitely comes down to running the numbers, with lots of assumptions. But I just think you invest in a growing market, that cash flows. You can't cash flow in these expensive areas. San Diego, Bay Area, Sacramento etc. I could buy 5 properties that cash flow 200 each for the same price as buying one here that is negative 1000 a month. Now, who knows 20-30 years from now which will perform better, but I believe in velocity of money and playing monopoly. After 5-7 years go from those houses to multifamily. However, a desirable place to live today will continue to be in the future. So long term 10-40 years, it's hard to argue with the safe play of buying a property for 400-900k and watching it grow 4 times in value in 30 years. Cash flow won't match that. I guess it depends on net worth goals. I plan on being a multimillionaire before 40. But I'm sure i could be at 50-60 as well with slow plays. Cheers and thanks for the thought provoking questions

Very true. <500 month puts you on the low end of the rent spectrum. So a plumber going out to fix a leak for 100 bucks is already 20 percent on one unit. Not sure the area but my guess is C to D class building and area. Those tenants may have higher maintenance expenses/turnover. You could make this deal work, but I think there are better opportunities out there. Especially for your first deal (I'm guessing it is). Find a place that you can force value / appreciation.