All Forum Posts by: Darlena Jones

That is super low. What are you including in your NOI?

Short term capital at higher interest rates than conventional loans.  Usually used for flipping or other short-term investments.

You can't get a simple construction loan?  We get them all of the time.  Call some local banks - they are much more willing to work with construction loans.

There was a podcast recently on student family housing - have you checked that out?

Welcome!  I'm your neighbor to the south :)

What did your tenant say happened?  If you believe him/her then I guess you have to replace it.  As you know, it could have been shot out with a BB gun (I have a duplex with about 5 holes in its siding - we figure some kid with a BB gun was target practicing) or a rock thrown from a lawn mower.  

Then, build your house, cash-out-refi, build your duplex, cash out-refi, repeat.  :)

There are two big and opposing thoughts on this. 

1) Be debt free:  If your tolerance for risk is low then this is your path.  No bank payments BUT your cash-on-cash return is pretty poor.  And you won't be leveraging that equity for more properties.

2) Be leveraged to your eyeballs: If your tolerance for risk is high, then this is your path.  You borrow the max on your properties (leveraged) so that you can take that cash to buy more properties.  Your cash-on-cash return is very good.

So, which path are you? 

It looks like you're doing a cash-out refi on the house?  In my neck of the woods, banks will lend up to 85% of appraised.  So, 85% of 100k = 85k less expenses of 45K = $40K net not the $55K you're stating.

But you only need $35K to build the duplex (BTW: I'm seriously skeptical on that number - materials must be a lot cheaper in GA) so you'll have just barely enough to build both.

Total Rent = $1200 a month and you don't have anything in (not counting the labor). So, yes, it looks like a great deal to me.

I would started buying holds sooner and I would like t ohave seen the crash coming.  That damn crash wiped out almost all of our sub-contractors.