All Forum Posts by: David Cornett

 Thanks. It seems obvious now that you pointed it out. Honestly, turnkeys have to make a profit, so this means I really have to calculate my own coc estimates and see if it still makes sense given the purchase price.

Thanks for the replies so far. fyi, the property is in SC, not MD.

 Thanks, Michael.  Your comments make sense to me.  At this point I can tap bank loans for much more favorable terms so I should probably hold off on any seller-financing deals until that no longer becomes an option.

Overall, the deal seems lose/lose. 12.5% locked in for that long does seem like a low ROI for the seller (especially considering interest rates will likely rise significantly in that time), yet still too high for me for cash flow purposes.

Hello,

There is a SFR on the market (1200 sqft, 3b/2ba). Sale price is $78K but the seller wants to finance the deal, requiring 5% down and $850/month for 20 years. This translates into $204K over the life, in addition to the small down payment.

Assuming the title is clear, is this a reasonable amount? It strikes me as too high of a payment considering a conventional loan at 5% APR would be about half that (not even considering the higher down payment). However, advertised seller financing seems rare, and this is probably negotiable.

Thanks for any adice!

I'm glad I stumbled upon this thread.  Just heard an ad for Mack on the BP podcast and wanted to check them out, considering the year 1 cap rate and coc promises.  OP (and all), thank you so much for sharing your experiences, it really makes this community valuable.

I can't speak for anyone else, but I'm just looking on Zillow/Trulia at this point. More MLS after I hook up with a local agent. Otherwise, I plan on doing some "driving for dollars" when I visit the town in person. I'm not aware of any wholesalers, but wouldn't be opposed to working with one.

 Sam,

Sounds like you and your wife are a great team - I'd love to discuss ideas.  At this point I'm trying to soak in as much as I can about the Winchester/FR markets and rental conditions and in the next week or so want to drive out there and look around with my own eyes.

 Theo,

Thanks for the input.  I started looking in Frederick, MD but have been a bit surprised at the ratios (retail price at least - I know you can still get deals).  It appeared more likely in Winchester/Front Royal to get good cash flow, at least from my initial search.

Hi all,

I'm based in the DC area and I am planning on making my first RE purchase within the next couple of months.  Most of my immediate area and even futher out in the suburbs don't seem to cash flow at all, and I'm looking for a cash-on-cash return comfortably above 10%.  So, I've been looking into communities a bit further out but still within an hour or two's drive like Frederick, MD, Fredericksburg, and Winchester.

My initial search found plenty of properties retailing around 100K or even lower, with TH rents averaging 800-900 and SFRs being around 1200-1300.  Overall, this seems like a very good sign (I know it depends on the indivual deal/property).  

Are there any concerns about the area with crime or being hard to rent?  Also, if anyone knows an agent who deals with investers (preferably an investor), I would appreciate a referral.  Any general advice or recommendations would also be appreciated!

Hey all,

One of my goals and reasons for wanting to get into investing is to be able to live and travel abroad 6 months out of the year.  I understand that finding good property management will be required - any other strategies or issues that I need to look into?  Any resources I should read?  How should I go about broaching the subject with a property manager?  I'd be worried about them taking advantage of me being so far away - is not telling them about my travel a viable option?

I don't want anything too passive, as I need high cash on cash return.

Any general advice would also be appreciated.