All Forum Posts by: Ian Goff

@Daniel Brown I was considering using a HML however since houses in my market often sit for longer I was concerned with the short turnaround hard money lenders have. That's why I was also considering money from family/friends mixed with my own funds and most likely the route I will take.

@Jason D. Here are rough numbers if I were to do it as a rental. 38k purchase price, 20k rehab, 750 monthly rent(this is accurate for this area of town and the house size/specs). However, if I was to use money from family/friends the only way to pay them back all at once verses monthly payments would to refinance correct?, if the property was used as a rental. 

Here is a snapshot of homes sold in the past 12 months in the immediate area. The blue circle is the house I am looking at and the red circled houses are all remodeled to some extent. Red dots are currently for sale, yellow dots have sold. The house for 130k is overpriced as it is within 10% sqft of all the other houses and same number bed/bath. The 67k house is remodeled but I assume the lower selling price due to an extremely small kitchen, that is the only difference I can spot between it and the others. 

@Daniel Brown that was my bad. I meant to add to the original post about that. I would consider renting it out and refinancing it but due to the lower grade area the house is in, would it be worth the hassle of dealing with potentially worse tenants? As it would be my first deal, it would be good learning experience to rent it out and learning to work with tenants but if I could get something in a nicer part of town I think I’d have less problems and a slower learning pace with better tenants. That’s why I was talking mostly about a flip even though my long term goal is buy and hold rentals. 

The market is very small. There is one side of town that is older and more prone to break ins and matters of that sort, that’s where this house is located. The other side of town is newer and prices for houses rise to a starting cost of 120,000ish. The comparable houses have been on the market anywhere from 70-180 days. Is that a normal time? The reason I’m looking at the older part of town is so I can use all of my own money with a quick flip and not a hard money lender or a fha/va loan and not be tied to the property for a year. As far as a feature to make the propert stand out, do you do something like a back porch if no other houses have one, or a water feature in the front yard, or seller pays closing costs... that sort of thing? 

Hey BP forums, I recently found a deal in a smaller town in Eastern New Mexico that I need some help in. The basics of the house are it's listed for 48,000 and 3 bedrooms 1 bath 1,700 sqft with no garage. It's in a D-/C neighborhood. The same neighborhood currently has 4 similar style remodeled homes for sale for 90,000+/-5,000. The home was foreclosed on and has been on market for 42 days. I estimated the numbers here 

Purchase: 38,000(assuming I can get it for this price

Down payment/closing costs: 10,000

Rehab: 20,000(some examples of what I would do)

-paint

-fixtures

-ceiling fans

-baseboards

-front door

-granite

-backsplash

-appliances

Total in: 58,000

ARV: 90,000

Even if I try to sell at 90,000 and don't get any offers would it be bad idea to lower the price to 75,000 to try to force a quick sale?

My biggest concern is the town I live in isn't very big so it can be pretty competitive.  

1. 7k down, 1750(875 each side, I could get 950 for each side if I updated the units but I’ll use this number for now)monthly income...977 mortgage, 5% vacancy, 102 property tax, 81 insurance, 83 maintenance expense 400 cash flow  

2. 0k down(va loan) 1100 monthly income... 608 mortgage, 5% vacancy, 102 tax, 81 insurance, 83 maintenance expense 169 monthly income. I thought this was higher last time I looked but I might’ve put in something different 

3. I found a home for 35,000 so I’ll use that as a example. 7k down, est. 25k in rehab(this coat could be significantly lower if I did a lot of the work myself) 725 monthly income...162 mortgage, 5% vacancy, 102 tax, 81 insurance, 83 maintenance expense for 258 cash flow. If I did this I could refinance and pull cash out too. 

4. 85k with 17k down 900 monthly income... 344 mortgage, 5% vacancy, 102 tax, 81 insurance, 83 maintenance expense for 242 cash flow. 

I’m getting my numbers from here https://www.calculator.net/rental-property-calculator.html?cprice=35000&cuseloan=yes&cdownpayment=20&cinterest=4.5&cloanterm=30&cothercost=3000&cneedrepair=yes&crepaircost=25000&cafterrepairvalue=85000&ctax=1232&ctaxincrease=3&cinsurance=982&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=1000&cmaintenanceincrease=3&cother=0&cotherincrease=3&crent=750&crentincrease=3&cotherincome=0&cotherincomeincrease=3&cvacancy=5&cmanagement=0&cknowsellprice=no&cappreciation=3&csellprice=200000&cholding=20&csellcost=8&printit=0&ctype=&x=92&y=15

Hey bp forums, first time posting on here and I need some advice. I have four different options to use as my first real estate investment. 

1. I have a duplex I can get for 200,000 with a 400 cash flow/month(after living in one side for a year using a FHA loan. When I live in it I would have a roommate to break even with costs

2. Remodeled single family home that go for 120-140 that rent 1,100/month and cash flow 300ish/month after house hacking for a year using my va loan. 

3. I can put 10k down(20%) on a single family home and put 25k into fixing it up and have an ARV of 85,000 and rent it out with 270 cash flow/month.

4. I can purchase a smaller “shotgun” style house for 85k 20% down and cash flow 250/month and not have the hassle of flipping it. 

All four are in a different neighborhood going from best to worst as I listed them. There are a ton others for sale like the third option where I can put 10k down and have an ARV of 85k so I was leaning towards rinse and repeating those houses until I have enough for 20% down on the first option duplex. I helped my friend flip a house this summer and got hooked on it so I know what it takes to renovate a house and am looking for the smartest way to build a portfolio of 5 houses by the end of 2020. I'm located in New Mexico if that helps at all. My question is which option looks like the smartest option for a newbie and why?