All Forum Posts by: Joe Fornasiero

@Doug Utberg I wouldn’t be willing to purchase it for $200k as a rental. I will do more research into the lease option. Thank you!

I’m going to be moving out of state and having a hard time deciding what I should do with my primary residence. If I sell I could walk away with around $50k after all selling expenses (I’ve lived in the house over 2 years so I wouldn’t pay capital gains taxes) all major mechanicals have been replaced In the last two years. (furnace, a/c, hot water heater, softener, septIc field, roof, wIndows, kitchen appliances, etc.) If I rent out the property the numbers would be as follows Purchase price: $136,500 Rehab at purchase: $18,000 Current value: $200,000 Rent: $1,400 Vacancy 10%: -140 Maintenance 5%: -70 Capex 5%: -70 Mortgage: -632 Taxes: -220 Insurance: -50 Cash flow: $218 The home is in a nice area that has appreciated well over the last few years. I’m looking for insight as to if I would be better off to cash out since I’m moving out of state or if this would be a good opportunity for my first rental property

@Austin Fruechting, Thank you! I'll give that a shot and see how it goes

@Austin Fruechting I think she may take it. I'm about to send her an email to confirm if it's in the ballpark. She doesn't need the cash and just want's out of the properties

@Rob Golob I said she had two appraisals and the average came out to $450K One was very low and the other was high. According to her, It's a very unique property that's hard to value. She said she's too busy working full time and taking care of her mother. Selling the rentals is the only thing she can get off of her plate. She also said shes open to creative ideas

@Bob B. That is correct. The seller said total taxes come out to $11,775/yr

I'm house hacking my current home and found an off market deal with a seller who has a duplex and a home on one lot and another lot with two homes on it. These are all on the same street right next to each other. I'm trying to determine if I could still get FHA financing to purchase all of them at once or if I would need to do commercial financing? The owner will consider a land contract but wants a large amount down. There is one duplex and 3 houses in the deal.

Numbers:

Gross rents: $4,480/mo
Vac/Maint/Capex: $1,120
DTE/consumers (for duplex) and trash: $300/mo
Insurance: $300/mo
Taxes: $981/ mo. 
Minimum cashflow required: $500/mo. 
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Max mortgage amount- $1,280/mo

Offer would be around $250K with FHA 3.5% down financing (assuming it qualifies)
some of the units are below current market rents and I would also look at adding separate meters on the duplex.
Owner said she's had two appraisals one low and one high the average came out to $450K. Her husband passed away two years ago and she doesn't know how/want to manage them anymore. 

I just finished reading @Scott Trench's book and think this would be a great way to start growing my portfolio. 

Any insight on creative financing strategies would be appreciated!

Has anyone ever bought 1/2 a duplex? I'm confused as to how the overall ownership of the property works. The numbers work and it cashflows approximately $168/mo with no money down and $380 with 20% down (self manage) is this something worth pursuing?

Geof Greeneisen that is the street. I've wanted one for awhile but it's been a few years since anything has been for sale there. It's been difficult to make multifamily numbers work in the area and inventory is very low. Most available right now we're built in the 1900's

Clint Earnest I'm taking about settling debt. If you're going to take out a credit card at 18 years old you should understand how it works. A simple Google search and research to understand how credit works is not difficult. I think a lot of it comes down to parenting. My parents taught me personal finance at a very young age. I took it upon myself to expand my knowledge in several aspects of finance, credit and investing. Unfortunately a large portion of our society doesn't understand basic finance but that's another topic in itself.