All Forum Posts by: Gabriel Lamb

Hello all! PLEASE critique my financing strategy. All feedback welcome! 😁

Available Financing: 75k Savings and 150k Heloc

Property for sale - 400k

Bought for - 325k

Closing costs - 10k

Rehab - 30k

Refinance costs - 10k

All in for 375k

Property ARV - 500k

Heloc used for:

Down payment - 80k; 245k loan

Closing costs - 10k

Cash used for:

Rehab - 30k

Refinance costs - 10k

Refinance 500k property for 75% LTV

Payback 245k loan and recoup my 130k cash.

Rents

Triplex 1500/unit

Total 4500

Expenses

Mortgage - 2100

Landscape - 100

Taxes - 450

Insurance - 50

Property management 10% - 450

Capex/repairs 10% - 450

Vacancy 5% - 225

Total 3825

Cashflow 675

Would you do anything different?

Did I miss an expense or cost?

Thank you!

Hello all!

PLEASE critique my financing strategy.

All feedback welcome! 😁

Available Financing:

75k Savings

150k Heloc

Property for sale - 400k

Bought for - 325k

Closing costs - 10k

Rehab - 30k

Refinance costs - 10k

All in for 375k

Property ARV - 500k

Heloc used for:

Down payment - 80k; 245k loan

Closing costs - 10k

Cash used for:

Rehab - 30k

Refinance costs - 10k

Refinance 500k property for 75% LTV

Payback 245k loan and recoup my 130k cash.

Rents

Triplex 1500/unit

Total 4500

Expenses

Mortgage - 2100

Landscape - 100

Taxes - 450

Insurance - 50

Property management 10% - 450

Capex/repairs 10% - 450

Vacancy 5% - 225

Total 3825

Cashflow 675

Would you do anything different?

Did I miss an expense or cost?

Thank you!

@Caleb Heimsoth I apologize for not looking for similar articles on the subject. Nothing was stated about how much money I have. It was a theoretical scenario to help with creating a plan for savings. In the future, I think you could go about giving this type criticism in a better way versus making me feel incompetent. Have a great weekend caleb.

Bp family! You're a newbie investor. You want to buy a multifamily property. You're conservative and want to put 20% down. You don't have any reserves yet. No reserve for capex. No reserve to cover rainy vacant months during a downturn. No reserve to rehab or cover closing costs. Ground zero. How do you use this 125k? How much do you set aside for these reserves? How much do you use as a down payment? How many units are you looking for? Is there anything else you would set money aside for? Would you save more or less than 125k? Thanks Bp, Happy Friday! Gabriel

@Lateeka Mosley thank you! That does help. I did not know about these websites.

@Delshon Chestnut I actually love this strategy. I was reading similar tips in a book currently. Thanks delshon!

@Mike Cumbie Thank you! I definitely plan to start looking at what sells and what sits.

@Ryan McCue great tip. I did not think of that

@Steve B. Thank you steve!

@Brie Schmidt thank you Brie! That was great insight. I appreciate it