All Forum Posts by: Francis Branagan

With that being said. After refinancing keeping 25% equity in each, 15,000. If each house makes 1640 a year that is 10.9% return on my money without taking into account equity and tax benefits. What are good profit margins to look for with rentals?

I think I am within the 50% rule. Taxes and mortgage are around 3-400 a month, jersey taxes are crazy. Mortgage is only around 300. The current owner says he cash flows 1500 a month some might be better than 300 a month some might be less just giving you guys averages and rounding my numbers up slightly for protection.

 I have those costs baked into these numbers. What are your typical margins of profit?

Also on a flip, which ive done in the past, investing 150 to make 50 i thought was pretty good..?

 The portfolio is 300k i would buy then cash out refi. Each house is 1000 a month rent. Refinanced, the mortgage and property taxes and insurance are 700 a month each. Each house clears 300 profit a month. I thought those were decent numbers? If i didnt refinace and left them paid off each would clear around 700 each..

 The portfolio is 300 i would buy then cash out refi. Each house is 1000 a month rent. Refinanced the mortgage and property taxes and insurance are 700 a month each. Each house clears 300 a month...

 Why

This is a would you rather scenario. Its a time sensitive scenario, you can't choose both.

1. Flip, purchase price 110k, needs 40-50k, sell for 199. 

2. Rental Porfolio, 5 houses local same town 300k after taxes and mortgages are paid you profit 1500 if all rents are paid and no repairs are needed. 

Hello I am an active reader but this is my first post.

So I currently own 4 rentals, looking to continue purchasing them. I have also had success with 2 flips recently. I am looking to continue to do flips and purchase more rentals for long term buy and hold. I am still fairly new to the business but so far things are going well. I have been approached by a couple friends and family members who would like to invest in the business.

I currently have two people who would like to invest 100k each in a passive setting in exchange for a dividend or something along those lines. I obviously don't have enough shareholders to for a Reit but something similar on a much smaller scale is what I would like to do.

What is the best way to structure and go about this? 

I'm looking to act upon my long time interest and goals of real estate investing. I just turned 23 and I bought my first home a year ago with 25% down. I like my home and plan to stay here for quite a while. Between what I had saved and can still save I will have around 120k and very good credit to start with. My goal is more of a buy and hold strategy, I currently am in construction field that i love but because of the long hours and harshness on my body I would like to start cutting back or be out completely in around 10 to 15 years. While working I won't really rely on my profit from rentals instead I want to keep rolling it into more properties or possibly income if work were to slow down for times.

The properties are in a blue collar more of a low income town that I grew up in and still live near. The homes I'm looking into are 40-85k (tris and quads usually 150to 250) with property taxes (south jersey) around 300 a month, rent 750 -1000. Some of the homes in this area are all cash homes especially the really good deals.

I was thinking about financing 2 with 25% then possibly buy one cash if it begins to grt tough to find loans. I will also use a proven property manager I know who charges 10% rent and first months rent with a new tenant. (He handles leases, court appearances, eviction, matinence, etc.)

I'm looking for advice, past experience, or what you would do differently. How many would you expect to have in 5, 10, and 15 years? What would you do or did to obtain this many houses? Should I pay off my home? Would you avoid gov section 8 housing? 

Any help or advice would be greatly appreciated.