All Forum Posts by: Derek Nemec

I understand from you that having adequate capital reserves to cover vacancy risks makes this acquisition worthwhile. So, acquiring the property for a $2,100 cost with potential earnings of $2,900 is acceptable in your evaluation, provided there is sufficient financial backing to cushion any potential setbacks.

Thank you, Frank! :)

Anyone else thoughts?

I am VERY interested in your risk assessment and I'm looking to gather information and from your experience, help the decision be made. Thank you for your thoughts.

3 properties: a 3b/1.5 bath home, a 1/1 garage apartment with 3 garage spaces below, and a 1/1 fully furnished small (500 sq ft) home. Each of these have their own lot and backyard. Central HVAC as well. The market rent puts all three together at approximately $2900 monthly.

Costs behind the acquisition:
Property taxes: $5000 yearly
Insurance estimate for all three: $3,300 yearly
C-class properties (not best location, their condition is about average - older properties)
Purchase price: $250,000k
$15k down and $235k seller financed at 6% interest for 30 years. 5-year PPP.
For your summarized review: PITI came to $2100 monthly. Total rents at 100% occupancy across the three are $2900 monthly.

I'm thinking because the financing terms are soooo attractive that it may be worth the higher risk that comes with the high PITI? What are your thoughts on the risk? What do you use for your numbers?

I own and manage 14 single family homes, all occupied nearly 95% of the time (stable rental market in my area), and currently analyzing a deal and figured why not ask for more input from all of you! Here it is:

3 properties: a 3b/1.5 bath home, a 1/1 garage apartment with 3 garage spaces below, and a 1/1 fully furnished small (500 sq ft) home. Each of these have their own lot and backyard. Central HVAC as well. The market rent puts all three together at approximately $2900 monthly.

Now here are the details and costs behind the acquisition:
Property taxes: $5000 yearly
Insurance estimate for all three: $3,300 yearly
C-class properties (not best location, their condition is about average - older properties)
Purchase price: $250,000k
$15k down and $235k seller financed at 6% interest for 30 years. 5-year PPP. 
For your summarized review: PITI came to $2100 monthly. Total rents at 100% occupancy across the three are $2900 monthly.

I'm thinking because the financing terms are soooo attractive that it may be worth the higher risk that comes with the high PITI? What are your thoughts on the risk behind this one?

I am a real estate agent that continues to invest in SFH's within my community. I just sold a few homes and was able to score my clients some massive $! They were conversating on how they didn't have anything to spend it on and it was just going into savings. I then thought of the idea to offer they a fixed rate if they private lended me cash on a short term (5-10 year) period. I am well established and continue to grow but thought that may be an interesting avenue for capital. Thoughts? I have 14 homes at this time and looking to buy more.

Anyone have any recommendations? I am also looking.

I am looking to close a deal this month with a pristine file. I would also like to hear from experienced investors on their experiences with the lenders they have worked with and recommend. I do not need input from individual lenders/brokers, just investors and their personal recommendations. May have follow up questions, but your help is greatly appreciated fellow RE investors!! 

 Check your DM's! :)

Hello there, feel free to comment below or send me a direct message with your information regarding rates, cost, and turnaround times.
Here is the scenario:

Property zip code: 77414
Property information: SFH, rented at $1700/month: 1-year lease.
Owned since 2022
Market value: $220,000
My FICO: >750
Preferred PPP: 3- or 1-year options
I'd like options on a cash-out refinance of 60-65% LTV on subject property.
(Please also send me rates for purchasing a likewise property as well)
30-year long term hold. 


Please input into your spreadsheets and send me your rates.
Interest only options as well if possible. Thank you! :)

Have you heard of the installment method of income tax accounting.?

 This is EXACTLY what I came up with and now just need confirmation that this is possible and would work towards mitigating the primary concern! Thanks Tyler for giving me this!!! It helps reinforce my idea! :D