All Forum Posts by: Erik Timmermans

@Khaled Omar welcome to BP. To start with Multifamily properties in June is a great plan and goal. If I was you I would make an yearly goal and break that one down into monthly goals so its easier to reach your goals by the end of the year. Dont be afraid to go big.

Let me know what I can do as my goal is to flip 24 properties this year within the Raleigh area and just so you know, I only started May of 2016. (Have 6 so far)

Happy Friday

@John Leavelle

Thank you so much again and I look forward staying connected. Let me know if there is anything I can do and appreciate the support and confirmations.

Thanks

Erik

Hi @John Leavelle,

Thank you for your input and addressing your concern and sharing your experience. I've only been doing this since may and have 4 fix and flips and in addition to that will this property my second rental. 

The financing I got is from a private money lender (investor). I am paying him a 7.5% interest which should leave me with 55 dollars cash flow per unit. I could increase the rent to 800 per unit as we're fixing the HVAC units and bathrooms. Not sure what your input is on that.

I am planning on refinancing this property after one year with a conventional loan. The ARV on this home is 175k so we should be able to put some money in our pocket after refinancing the property.

I just finishing listening to the @biggerpockets/48 podcast and they're referring to 1% rent rule on purchase price. If the rent is 1500 dollars per month for the two units I should be staying in the "safe zone" up 150k. Or am I now mixing two things together?

Thank you so much as I appreciate your time look forward to your reply.

Erik

 @James C. Thank you for sharing your numbers. I will put my numbers into your formula as I'm using an investors money for 7.5% interest. I'll will print out your numbers and use them for future properties. I appreciate your time.

@John Leavelle Thank you for your advice. I've emailed the realtor and accepted the counter offer of the seller and hope to have it under contract by tomorrow. These are the numbers thus far.

Loan: 102,000

mortgage payment $640 per month

Cash flow 750- 640= 110 ($55 dollars per month)

I wasnt sure what you use as bottom number for the minimum cash flow per unit.

I appreciate your time and input.

Thanks Erik

I need your experienced input on a duplex I am trying to close on and would like to add to my portfolio as an "buy and hold" property.

The asking price for the duplex is 110k and the duplex needs about 15k in renovations.

I based my offer of 95k of the "value=NOI/cap rate" formula. The total rent I will get for this property will be 750 dollars per unit. Below is my value calculation and am curious if I should stay or should I go???

750X12= 9000 x cap rate of 10% = 90,000 dollars

I look forward to your input and feedback. 

Thank you,

Erik

 Hhaah Thanks Jeff. cant start soon enough with planning for the new year. We'll stay connected

 I hope so too and that you may achieve your goals

My name is Erik Timmermans and I started together with my business partner our investment company in May 2016. Our goal is to have 5 single family homes under contract by end of 2016. So far we are under contract on two homes and are well tracking to close on three more before the end off 2016.

Our goals for 2017 is to flip 24 homes plus to buy and hold 10 single family homes. We like to aim for the stars and achieve our goals. Follow me on BP and see how we achieve our goals.