All Forum Posts by: Shawn Hansen

Hello BP! 

Selling our first investment property and I know the best approach is to defer capital gains through the 1031. Does anyone have recommendations for a good company to handle the transaction? Sale of investment is in Washington and the purchase of a new one will be in Florida. And some rough research shows transaction fees higher than what I expected. I'm seeing some companies charging $1,000 for the sale of the home and $250 for what appears to be to identification of the future investment. Does this sound reasonable? 

Thanks for any and all feedback. 

-Shawn

Wholesaler obviously provided first estimate and then realtor provided more conservative numbers. I then did further research and came up with the above. I'm moving to the area in March but am eager to get my portfolio started now. We've been searching since September and this is the first property that really has me doing additional research. I thought 75% was pretty standard with some banks offering 80% LTV. Thanks for the additional info. I'll be contacting a few banks now to solidify this number.

-Shawn 

After a few months of searching I think I'm ready to purchase my first investment property. This will be an out of state deal in south Florida. My realtor works almost exclusively with investors and has the connections to see this through. Because of this she gets 2% of the sales price on this wholesale deal. I'm also thinking of incentivizing it a bit more and offering 10% on the difference between the sales price plus rehab costs and ARV. Her husband then works the property management side and offers 8% fees (used 10% in my below math just in case).

Duplex - 2/1 both sides

Purchase: $97K all cash no and includes realtors work for finding the deal

Rehab: $20K (floors, kitchen/bathroom, paint and other cosmetics)

ARV: $135K (will then refinance at $101K leaving roughly $16K in the deal)

Rent: $800 each $1600 total (current tenants on month-to-month at $500 on both sides)

Vacancy: 10% ($160), CAPEX: 8% ($128), Property Mgmt: 10% ($160)

Mortgage: $376, Taxes: $150, Insurance: $100

Lawn Care: $100, Septic: $13

Cash Flow: $413, CoC: 30.9%

Property is in a very stable C Class neighborhood. My numbers are very conservative. Rent comps from realtor and property manager as well as my own research say each side should rent at $850. The sales comps also put the ARV a little closer to $143K. My only major concern is the rehab. Numbers I have been given are between $15K and $20K. I think even if the true number is $30K I'm still looking pretty good. Another concern is dealing with the current tenants in regards to the holiday season. I'm thinking of keeping them in place until after Christmas for the mere fact that even if I do move them out and rehab, it will be difficult to place tenants in mid to late December.

What are your thoughts, what am I missing or not asking myself? 

Thanks for the insight!

-Shawn

@Clifford Paul. This is the blunt comment I needed! I know it’s stupid not to take advantage.

@Tom S. It is 0% for the term of the loan. Didn’t know about installment loans effecting credit. Good info. Thanks!

Due to the SCRA and having an AMEX Platinum Credit Card I have the opportunity to take out a $35K personal loan at 0%. I know intuitively this is a great opportunity to take advantage of. We're in the process of buying our first investment so this loan coupled with our cash reserve could make us more competitive in the market. I'm still nervous though. We've been debt free for about two years now and having that peace of mind is a huge weight off our shoulders. 

Two questions for the BP family. Should I wait until I know I need it? Should I protect our current credit score and DTI ratio just in case I need a larger loan?

Background: military stable income, $120K in cash, $4K saved a month, no debt. If I pull the trigger I plan on putting the funds in the Vanguard Money Market Fund which yields about 2%. 

Appreciate your thoughts. 

-Shawn

 Thank you for the recommendation. I'll be sure to send him a note. 

 I'm active duty military stationed in England. Moving to Tampa in the coming months so working to set up a team. Thanks for reaching out!

I was recommended a mortgage broker but I'd prefer to start shopping around on my own. This will be my first investment purchase so wanting to work as much as I can this first go round to learn the ropes; what to ask, pace of the deal etc. 

Anyone have a recommendation for a good lender in Tampa Bay or surrounding areas?