All Forum Posts by: Josh Dillingham

you could do a cash out refinance on the condo. if it appraises at $550k you could get a mortgage for 80% of that value, $440k you could use that money to buy one larger or multiple smaller multi-family properties with 25% down payments and 30 year fixed mortgages. this would give you nice monthly cash flow.

what type of work does the property need and how much do you estimate it would cost? Home Depot offers project loans up to $55k at 8% with an 18 month term (long enough to fix the place and refinance) that could be used for materials and installation if performed by Home Depot installers. can you pull any equity out of your personal residence (refi or HELOC?) you might be able to find a hard money lender in the bigger pockets market place.

the interest rate seems high to me. I'm refinancing a single family rental right now, 30 year fixed for 4.35%

All I can say is this wouldn't fit my criteria. You've done a good job estimating expenses and your percentages are pretty conservative so your not likely to get upside down in this thing. But cash flow of less than $100 per month wouldn't be worth it for me, and when you have to self manage a property in order to take it from a subpar deal to and OK deal that is dangerous territory. I'd say keep looking you can find something better. Looks like you are probably in an expensive area and will have trouble making the numbers look good In your market. If you're willing to go 2.5 hours away why not look a little further and see if you can find something that cash flows at $200 per door per month with property management, that's the number I like to stay above.

Welcome to BP.  Go to bigger pockets.com/meet to find BP mbers in your area. I am sure there are real estate meetups in Dallas that would give you face to face time with fellow investors.  The best advice I can think to give is to start being hands on right away with everything you are learning. Don't get caught in analysis paralysis. If your reading a book or article start using the information it's given you now, don't wait. You will never know it all and there is no minimum amount of information you need to have before you can start analysing deals. You'll learn more by doing than any amount of books you will read.

You should listen to bigger pockets podcast show #253 with David Puchi. He owns 50 strip mall and has good advice about finding big brand tenants. He talks about creating a relationship with a broker who can get in touch with the broker for the brand you are trying to land.

Agree with @Jim Murray if the numbers make since you'll get plenty of interest from bigger pockets members in the area.

@Thomas S. and @Jacob Rhein Thanks for the advice.  I've made offers contingent upon financing in the past, but I already had the down payment lined up so it felt a little different, but I guess it's all the same.  I do plan on offering some earnest money so hopefully that will help.

just signed initial disclosures and submitted all documentation for a cash-out refi on a single family property I bought one year ago. I'm expecting the property to appraise for 70k and take out 75% LTV for a total of 52k in cash out. My plan is to use this money as a down payment for a small multifamily. I'm going to look at a 3 unit property this afternoon asking price is 90k. My numbers say it would be a good deal at the asking price + 20k in renovations/closing/vacancies.

If I like what I see today I'd like to make an offer. Am I being too aggressive considering I don't have any guarantee that the cash out refinance will go smoothly? Even if the single family only appraises for 50k it would give me enough cash for 25% down on the 3 unit, but there is always a chance the cash out refinance could fall through all together. I only have 10k in personal savings I could use for this deal, not enough for the down payment. I don't want to let a good opportunity slip through my hands but I also don't want to act irresponsibly

I just signed initial disclosures and submitted all documentation for a cash-out refi on a single family property I bought one year ago. I'm expecting the property to appraise for 70k and take out 75% LTV for a total of 52k in cash out. My plan is to use this money as a down payment for a small multifamily. I'm going to look at a 3 unit property this afternoon asking price is 90k. My numbers say it would be a good deal at the asking price + 20k in renovations/closing/vacancies.

If I like what I see today I'd like to make an offer. Am I being too aggressive considering I don't have any guarantee that the cash out refinance will go smoothly? Even if the single family only appraises for 50k it would give me enough cash for 25% down on the 3 unit, but there is always a chance the cash out refinance could fall through all together. I only have 10k in personal savings I could use for this deal, not enough for the down payment. I don't want to let a good opportunity slip through my hands but I also don't want to act irresponsibly.