All Forum Posts by: Daniel Foster

Thanks @Chris Harkins and @Alex Craig

I appreciate all of the help.  It did come with a new copper line, but not a cage.

I am looking at replacing the Heating and Cooling system for a 1,800 square foot SFR in 38119. My property management company is quoting me "14 sear 410 A freon 4 ton Goodman complete system they would be looking at $5500 That is the condenser evaporator and furnace."

I haven't had to replace one before and am looking for someone to let me know if this passes the reasonableness test.

Thanks!

Thanks for the feedback.  I have an update to the story...  The next day I got a call informing that the other investor had backed out and the property was available.  I moved forward to purchase the property with the bid I had submitted.  My question is, could I have negotiated further to get a better price?  Has anyone done that before?

Thanks

I would like some feedback on a recent experience with auction.com. By recent, I mean today... I bid on a property and was the high bidder with about 90 seconds left and the reserve had been met. At the last minute, I was out bid and decided not to go any higher. Fast forward to this evening and the property is back up for auction and at the minimum bid. Could someone have bailed after winning or is there shenanigans going on? Thanks Dan

@Douglas Skipworth The plan would be to reinvest in another property or two.

@Graham Parham That would be awesome.  If you could reply back to this thread when that comes to fruition, that would be great!

@Michael Wentzel  That is absolutely the plan.  I am trying to get as many 4.5% 30 year loans as possible.  I am also trying to build the network of private investors and commercial lenders so I can hit the ground running when I hit the 10 property cap.

@Reece O. I like the HELOC idea. I have done that with my personal residence, but I haven't found many banks willing to do it on an investment property. I did talk to Wells Fargo about it and they were willing to do 60% of appraised value after a 1 year seasoning period.

Thanks for everyone's comments and feedback!

Hello everyone. I have been following Brandon's BRRRR strategy for the last couple of years. A couple of purchases ago, back in October of 2015, I purchased a house for $80,000, which I closed with 25% down conventional financing. I put $20,000 in and it is now likely worth about $135,000. I can do a cash out refinance with similar rates and likely get $35,000+ cash back out after closing costs. It hurts to have already spent $4,000ish in closing costs and then come back and pay it again now that the 6 month seasoning period is up. However, since I now own 6 houses, my window to complete cash out refinancing though conventional financing is closing. I would love to hear others thoughts.

Thanks,

Dan

My experience has been that I had to put 20% down through the first 4 properties and 25% for 5 through 10. After that it's if there is a will there is a way...

For what its worth, I purchased one house from Memphis Invest about 3 and a half years ago and it was a good experience.  I used it to get my feet wet in real estate investing.  I have since continued to purchase properties on my own, so I can keep what they were getting for a spread for myself.  As long as you go with someone reputable you should be fine, but the real money is in the purchase  The challenge is that when you purchase from a turn key provider you will have little to no equity in the deal.  That will likely be the case regardless of the turn key provider you choose.

@Jason Stubblefield

I have had good luck in 38119 zip code, but $50k properties are pretty difficult to come by.  I would be with @Stephen Akindona on this one and try to get closer to that 70k to 100K price range as you can generally demand rents in the $1200+/month range at that price point after its fixed up

Thanks @Darryl Dahlen  I was thinking going with a more local bank, but Wells Fargo has always been a great bank to work with on personal mortgages, so its worth giving them a shot.

@Eric Benzenhoefer  It actually doesn't have a cash flow history.  It is a commercial building that had one business in it and they owned the business. They grew to the point where they needed more space, so they moved and have had the building for sale for several months.  It has 3 finished floors and a great structure.  I would be starting from scratch in getting it to cash flow . . .

@Peter Aldrich I actually know Jim Brown and he has been very professional when I was looking at a residential flip earlier in the year.  He may end up being who I go with, I am just looking to weight my options.

Thanks for all of the feedback.