All Forum Posts by: Dalton Willett
Dalton Willett has started 5 posts and replied 5 times.
Good Evening everyone!
I want to bounce an idea off of you all and see if my logic on this makes sense.
My uncle owns a property in Iowa City, which is a great place to own real estate and a market I want to get into. There is a chance he moves within the next few years and I had talked to him about purchasing the property from him to add to my portfolio as a rental. I was thinking that, since he got his loan through the VA and I believe it is assumable, if this is something that any of you have done, and what goes into assuming a loan, and what are some things to look out for. The reason I want to assume the loan is his interest rate is far lower than I can get today, and at a 6-7.5% percent interest rate the numbers do work, but if I could take over his loan of sub 2%, obviously, it would enhance the investment a great deal on a cash flow basis. I ran the numbers back of the napkin, and here are 2 scenarios given the higher interest rates.
| Property Price | $315,000 |
| Loan Amount | $252,000 |
| Down Payment | $63,000 |
| Rent | $2,650 |
| Mortgage | $1,960 |
| Taxes | $350 |
| Insurance | $105 |
| HOA | $100 |
| Total Cost | $2,515 |
| Monthly NOI | $135 |
| Yearly NOI | $1,620 |
| Appreciation 3% | $9,450 |
| Debt Paid Down | $8,400 |
| Total Yearly Earnings | $19,470 |
| Yearly Return | 30.90% |
| Property Price | $315,000 |
| Loan Amount | $252,000 |
| Down Payment | $63,000 |
| Rent | $2,800 |
| Mortgage | $1,960 |
| Taxes | $350 |
| Insurance | $105 |
| HOA | $100 |
| Total Cost | $2,515 |
| Monthly NOI | $285 |
| Yearly NOI | $3,420 |
| Appreciation 3% | $9,450 |
| Debt Paid Down | $8,400 |
| Total Yearly Earnings | $21,270 |
| Yearly Return | 33.76% |
Hello all! I am posting today because I know the QCA has investors and is a good and up and coming market. I have met a few awesome connections through BP but think it would be awesome to get a group together once a month or so to chat about investing and network! Hope to hear back from you all!
One questions I had is for you that decided to formulate and LLC to operate your real estate businesses do you do so under a blanket LLC? Do you purchase each of your properties under a designated LLC to protect your portfolio? For those that did go the LLC route, how hard has it been to find financing? I'm looking to make a decision here soon but have some reservations about going the LLC route.
Post: Looking to network with Quad City Investors
- Posts 5
- Votes 0
Hello,
I was reaching out to see if anyone on this forum was located or invested in the Quad City Area. Can be on the IL or Iowa side. Looking to network with investors in this market. Looking forward to chatting with you!
Hello,
My name is Dalton and I am a 23 year old newbie to this real estate investment game. I am the corporate sales manager for a storm restoration firm and the job I have along with the schedule it keeps makes real estate very attractive to me since I have good knowledge of the contracting side of things. I have yet to make a deal but am spending a good amount of time each week learning all that I can. One question I have is, what happens once the deal is closed? I have closed on that property and I am ready to start renting it out and then what happens? How do I find renters?How is that cash flow taxed? Basically, what does it look like day to day after I have closed the deal. This may seem like a silly question but this is a part of the process I am least familiar with, thanks in advance for any and all responses!