All Forum Posts by: Gregory Schwartz

As life would have it I worked all day and didn't get a chance to get an offer in on this house. But I made huge leaps in terms of my overall education. One thing I'm still not sure about. If I do a quit claim do I get to keep the 30 term and rates I obtained in my name even after the LLC holds the deed? If this is the case am I limited to 4 mortgages? Thanks again for all the help.

I appreciate the feedback from everyone, Im working the quit claim deed option now.

I hadnt planned on using this as a forum to analyze the deal but since it appears to be the topic of conversation I will share what numbers I used to analyze this property.

Purchase 80k with commercial loan 25% down, 20yr, 5% apr (P&I : $395)

Per month cost:  tax - $80, Ins - $80, vacancy $70 (8%), maint $45 (5%), PM $90

Notice no CapEx because I plan on keeping $5,000 in the LLC's checking per house to cover this.

Rent $900 based on Zillow, Craigslist and the Basic Housing Allowance for a E-5 (target renter)

FMV: Conservative $110k (recently sold houses on zillow average 120k)

Cash out of pocket ~25k, Cash flow per month $140 ($1680)   =>  6.7% return on investment, not the best but better than what my Etrade is doing right now.

IF I refinance 80k, P&I - $528, I will be able to pull nearly all my money out of the deal but kill my cash flow.  This will be a decision I make based on the rental market. 

Finally if it all goes to **** and need to sell I'll have $50k equity in the property. I'll sell, lick my wounds and move on. I dont plan on building the entirety of my portfolio in this way and will work toward the 2% rule. 

Feedback welcome, I'm learning at the rapid rate these days. 

@Don Chambers, my plan is to offer asking price. Based on my numbers it will cash flow, and it has enough equity built in that I should be able to flip it as an alternate exit strategy. It's a safe bet with little risk (minimal rehab). If nothing else I'm sure this will be an opportunity to learn finer points of land lording. 

@William Walker, my plan is to manage myself for the first 2 years or so but budget 10% for a management company. Choosing a good company is a problem for future Greg. I am military and know that a lot of guys choose Richlands to get away from Jacksonville. My target renter is likely military with dependents ( IE Sergeant making $1100 BAH). Higher turnover might be an issue but I feel like the overall quality of renter will be above average.  

thanks William. Guess I need to research quit claim deeds. Any recommendations for a lender in the NC area?

BP, I am about to take the first steps to becoming a landlord. 

So far.... I have established an LLC with my father and analyzed every property that has been posted on Zillow in the last 3 months. I am also working my way through every podcast Josh and Brandon release (currently on 44 of 213). My focus is Easter NC between Jacksonville and Wilmington, buy and hold.

The deal... A local real estate agent brought to my attention a 3/2 1300sqft REO asking 80k. I have seen the house in person and it requires minor cosmetic work (carpet, paint, fixtures). Based on my knowledge of the area this house should rent for $950. Comps put the ARV at 100-115k.

Being that this house just went on the market and will likely not last long I am working to put in an offer soon. However it requires proof of pre-approved financing.

The question... Can I put the offer in my name based on pre-approved mortgage I obtain personally but then purchase the house via the LLC with financing that I obtain at a later date?

One more vote for the coast. 

thanks everyone. I've been doing my best to analyze/learn as much as I can and will continue to do so until i have the savings required for my first purchase. 

hey everyone, Greg here. New to BP and new to investing. Planning my first purchase, buy and hold using BRRR in the Wilmington / Hamstead NC area. Looking to meet locals and learn everything I can.