All Forum Posts by: Seneca Hampton

Welcome Thomas! I've only been on here a short while and let me tell you this place is great! Great people, great information and a great place to start. Good luck on all your future deals!

@Ervin Alex I calculated what the Mortgage would be assuming that I got a 30yr 6.5% fixed rate adding HOA, Prop Tax, Insurance and up keep minus the Rents received, I would be have a fairly significant cash flow that I'd be comfortable with. Hope that made sense.

@Jason Eyerly I'll keep you updated. doubt he'd take my offer of 375k when he bought for 550k 8-9 years ago hahaha! But HEY! You never know unless you ask!

Thanks @Jason Eyerly I'll start reading it now!

Until they were paid back plus interest of course.

@Jason Eyerly valid point. I agree. I believe the owner just isn't managing the resources correctly. With my dilemma being "short on cash" it would be difficult to come up with the down payment on the prop which is why I'm thinking the HML/Refi route. I also read that Fannie May (I believe) doesn't have a seasoning period and will allow you to loan up to 70% ARV.

@Mark Ferguson my thoughts exactly!! If I were able to close the deal at 350-375k (all cash and some most of the contingencies hopefully would make it appealing) it would be a slam dunk! But the owner purchased the prop in 05' for 550k. Spoke to the agent and he "says" the owner turned down an offer that was 50k below asking. Funny thing is, the props be on the market for over 130 days!! With only two offers. Seems as if I need a major down payment to make this work huh? I've been joking my brain trying to get as creative as possible.

I'd even be willing to go 40/60 net with a HML if they were open.

@Jason Eyerly Yes, I've seen the Cash Flow Statement:

Utilities: $6316

Painting ???: $3260!!

Carpet cleaning and replacement: $2015

Repairs+pest: $2509

Management fees: $3300

Maintenance contract/Main: $3240

and the rest added up to the total of 23k

With it being a Fourplex I have the option of going FHA, that is an option.

@Mark Ferguson they are asking 700k it is valued at 550 (I think that is even high as well). In my opinion I feel that place is poorly managed and if given TLC could generate a great cash flow. thought?

This could potentially be my first deal but I am having a hard time making sure that I have considered everything and deciding on whether a Hard Money Lender would be a good option. So here is the situation:

A Fourplex worth 550-600k. Gross income of 47k. Rents are below market rent by $300 per unit (could be making 60k annually). Needs about 60k+ of reno to get it there.

Expenses are around 20k+ not including Prop tax, Ins, HOA or mortgage.

I am thinking of getting a HML, purchase, refinance to pay loan back and have enough left to do some improvements. What do you guys think?

@Mehran K. thanks for love! I am interested in buying and renting. Consistent Cash flow is my hope. I know it will take years but I am ready and the end I know will be so satisfying. But I am open to subject-tos, lease options, and even flipping. My plan is start with rentals and work my way up. Thanks for the link I read it, great tips!

@Mark Ferguson Thank you, you guys have made me feel more than welcome! Thank you!

If I can be of assistance to you both in any way let me know!

Hey team! My name is Seneca and I live in beautiful San Diego. I am new to Real Estate investing and looking to learn. You know what they say "If you want to learn something and be good at it make sure you learn from a Master". If there are any masters out there who'd be willing to mentor me I'd be more than willing to learn. I've yet to purchase my first property but I extremely eager. I am however a Real Estate agent so I have some knowledge about Real Estate in general but I am rapidly learning more about Real Estate Investing and want to stand on my investments to provide for me. I have been reading tons and trying to be come comfortable with the ins and outs (from an outside view of course). But I am very excited to start my Real Estate investment career and look forward meeting great people on here who are willing to help a young 25 year old guy start a powerful legacy.