All Forum Posts by: Erik Jason

@Jay Dewberry thank you so much for questioning my strategy and numbers. I went back and redid the analysis using the numbers for the refi loan once the property is rehabbed. My plan was to borrow cash for the purchase & rehab. Fix the property, then refi into a conventional loan and hold it as a rental. I thought the low purchase price would allow this property to cash flow very well as a rental - purchase price of $70k, ARV of $155. Here's what I found when I redid the numbers.

Purchase Price: $70,000
Rehab Costs: $17,500
HML Costs (3-6 mths): $12,000
Total cost into the property: $99,500

ARV: $155,000
Refi loan (65% LTV): $100,000

Monthly Rental Income: $1,100.00
Monthly Expenses: $1,253.00
Monthly Cashflow: -$153.00

Boy was I wrong about this property cashflowing nicely as a rental! Are these numbers right? Did I miss something here? With a loan for only 65% of the property's value, it still won't cash flow?!

https://www.biggerpockets.com/calculators/shared/139077/c99ca271-c00f-45e5-b13b-99433fcd21d9

@Jay Dewberry thanks for the feedback. You're absolutely correct. The seller is taking only cash offers at this time. Unfortunately, I don't have the cash to fund this myself. Therefore, I was asking for both feedback on the analysis of the deal AND a lender to help me fund it.

Thanks for the warning on factoring in terms/fees for the HML. And, I did run the numbers with 10% CapEx and repairs. Obviously the additional expenses cut into the monthly cash flow, but it would still cash flow nicely.

I'm looking for some feedback on this short sale property. Not great ROI, but should cash flow nicely as a rental. Built in 1994, needs about $7k in foundation repairs plus minor carpet/paint, otherwise the house is in very good condition.

Would you do this deal?

Am I missing anything critical?

Any hard money lenders interested in loaning me the cash to close?

https://www.biggerpockets.com/calculators/shared/139077/0e89e9d0-5713-4b11-bef9-3747fab08b9b

I’ve been researching the foreclosure process in my surrounding counties, and it appears that there may be some opportunities for good deals here. I’m wondering if any San Antonio, TX area investors are having success purchasing good deals at the court house auctions? I’m primarily looking at Bexar, Comal, and Guadalupe counties. It seems like many of these properties are overpriced for anyone trying to get a good deal on an investment property. If anyone out there has some insight on whether or not this is a profitable strategy, I’d love to hear more about how you’re making this work. Do you only search public records? Do you use a listing service? Do you run solo, or are you partnered with someone? Do you focus on specific areas? Etc…Thanks!

I've been researching the foreclosure process in my surrounding counties, and it appears that there may be some opportunities for good deals here. I'm wondering if any San Antonio, TX area investors are having success with REO properties that don't get sold at auction? I'm primarily looking at Bexar, Comal, and Guadalupe counties. If anyone out there has some insight on how to make offers on these properties that go back to the bank, it would be greatly appreciated. Thanks!

@Phillip Smith, that sounds great. How do I get on your investment properties list? Do you have a web site? Do you work with a large group of investors? Do you have referrals for private/hard money lenders or other creative financing? Sorry, obviously I have so many questions.

@Tim Macy, it's great to hear that your company has agents that specialize in helping investors. I did take a look at your site, and WOW, that's quite a pool of agents. Is there any way you can help me narrow down the list to those who have experience dealing with investors?

@Kurt Brumfield, thanks for your reply. How do I message you my contact info?

@Mike Watkins, that's an excellent idea! Would I simply ask my realtor/agent if they can send me a list of the areas with the highest cash deals in a given city/zip code?