All Forum Posts by: Dulce Beltran

@Brian Foster great insight! I'm an out of state investor and looking to TX for a higher cash flow, cap rate and cash on cash return. Considering other states as well, thank you!

Your lender/bank is the one that would impose flooring due to FHA guidelines and since there is "flooring" although bad this should not have any bearing on the loan being funded, as long as the carpet is there. Definitely do not improve the property until the deed is in your name, that will create a whole mess of other problems. Since it only Appraised for $135K and the contract is for $139K, the seller can add an additional $4K credit towards closing (must be used for closing costs so if your closing costs are only $5K, the remaining amount will go back to seller), or reduce the purchase price by $4,000. If you decide to move forward, you will have to pay that $4K out of pocket to the Seller as the Lender/Bank will only lend to the Appraised price of $135K. Hope this helps!

Thank you for sharing, definitely an area I'm interested in, and didn't realize the premium potential! 

Justin, thanks for your input, I was curious to see if it was used as a hard rule or based on one's own numbers.  J Scott, i'm going to play with my scenario numbers with the/MPP thanks! 

Hello BP community, I live and Sell Homes in San Diego CA. I stumbled upon this property, SOLD for $609,000 needed flooring, paint, kitchen and bathrooms (flipper refinished cabinets) then sold it for $709,000 two months later. Based on the 70% Rule, the investor should only have paid $496,300. After Selling expenses, estimated at 4.5% and Construction/Materials no more then $30K, for a rough estimate of $61,905 (doesn't include taxes). My question is, does that "70% rule" apply in High Acquisition markets? Is 85% ARV too much of a risk? Does that even leave enough spread to make a profit?

@Antoine Martell: why do you place each property into their own llc? And is Ira subtype of a larger corporation/llc? @Christopher Phillips: if you create an llc and place your first property in it, assuming you will place further properties, what type of financing would be difficult to use and why?