All Forum Posts by: Elizabeth Justice

Can anyone recommend an investor friendly real estate agent, contractor and roofer in El Paso?

@Jennifer Beadles I am using HML, I haven't found lenders that will do an 80% cash out. I will have to call some more lenders to see if I can find that.

@Nghi Le yes I'm using hard money

@Jeremy Zalman Yes, just coincidence.  I can come up with the money to close.  Looking at rents in the area, I think I could only rent for 1200/month, which would net a positive small positive cash flow.  Also, I do count closing costs on both ends, including commission.

I know flipping gets a significant capital gains hit, and I'd really like to avoid that. My long term strategy is to buy & hold multi family units. The reason we are starting with flipping is because my high DTI makes it hard for me to get a conventional loan, so we're paying down debt and with the help of a couple of small flips we can be down to only having our house as debt. But if we can get an 80% equity loan, we could walk away with almost as much after tax cash AND have cash flow and equity building up, that sounds like a better long term strategy.

My husband and I are in the option period of our first deal.  The house needs a lot of work, but nothing major came back on the inspection that we weren't aware of.  So after several offers it looks like we may finally close on a deal (yay!).  Because we don't have much cash, our plan is to rehab and sell it to build capital.  The numbers are:

ARV = 150K

Purchase = 72K

Rehab = 22K

Profit after closing costs, holding costs, loan costs = 29K (but I expect unexpected expense to lower that a little)

I'm interested in the BRRRR method, but my understanding is we could only refi for for 105K, or 70% of ARV. Our expenses of house (72K)+rehab(22K)+closing costs(1440)+loan costs(10K)+holding costs(3K) are almost 109K. So we would have to bring cash to the table for the refi.

So how do you make the BRRRR method work when you don't have a lot of cash and don't want to raid your 401K? Do you have to negotiate lower with this in mind, or do I have some assumptions wrong?

From what I've seen, the rent on a 120 SFH would not be as much as a 120 duplex. The appreciation would probably be better because I'd be getting into better neighborhoods.

Hello everyone.  My husband and I are Kansas City natives, but living in Austin, TX.  We're wanting to make our first investment purchase in Kansas City.  We're familiar with the city, and getting familiar with current market conditions.  We're looking for something under 80K for a single family, preferably a little less so that we can do some rehabs on, or under 120K for a duplex.  Can anyone share recommendations on good areas for these budgets?  We're also looking for recs on a property management and real estate agent.