All Forum Posts by: James Ashley

A local investor is dumping all of his properties and I'm considering buying one. This will be my first property. The property is currently rented and the renter is paying a below average rent for my area. I plan to update the property and then raise rent to meet my area's average (increase of $325 a month). How do I go about this? Not only from a business stand point but from a moral one as well? 

If the tenant is ok with paying the new higher rent how should I go about having the work done? Scope of the work includes exterior/interior paint, new flooring, and kitchen update. Obviously speed will be the key but how do you handle a kitchen remodel and replacing floor when a tenant is living in the property?

It's not coming. I'm not saying there won't be discounts but seeing properties reduced 75-80% from their value isn't happening. The difference between now and then is that in 2008 the housing market WAS the pandemic. Those that are waiting for some big crash so they can get in are going to be waiting awhile.

Is this true? I was listening to a podcast and they mentioned that if either you use a property manager or you go solo and use a lawyer. If that's true wouldn't the lawyer offset the cost of the property manager? And why would you need a lawyer if going alone?

I saw a post a few months back about someone who told the tenants that the first $100 or anything under $100 in repairs were on them? This seemed like a genius idea and a way to keep from getting called out to a property over frivolous issues. Does anyone do this or something similar? Interested in seeing how people handle this.

Comps are 95-100k

Forgot to include that my numbers are showing around $200 a month cash flow.

Looking at buying my first investment. Seeing what the people who do it everyday this about the numbers.

Purchase price: 75,000

Loan amount: 60,000 after 20% down

Mortgage: $475 w/ taxes and insurance

Rent: 850/month

Vacancy loss at 8%

3 month reserves set aside plus additional 3,000 for Capex. Will put additional $500 a year aside for Capex from rent.

How does this deal sound? Numbers too tight? Good deal?

I always here people talking about not getting over leveraged when doing multiple BRRR properties. Can someone give me an example of at what point someone would be over leveraged? I'm having a hard time understanding it.

I know I started this thread a long time ago but I want to revisit it. I’m still having a hard time understanding how people make this work. Using the numbers above to continue the example. I buy a $50k home and arv is 100k. So I put 25k in rehab and refi at 75k. This home now has a mortgage of ~$500. Rent in my area for a home I could get at this price is $750-800. So subtract the $500 mortgage and I’m only left with $250-300. That puts me outside the 50/50 rule. Is it just because my market is so low?

That's where I'm at now. Unfortunately I don't have 60k to put towards a property. I'm looking at one property where owner financing is an option but the home needs A LOT of work. I'm running numbers now to see if I can make it work. This  scenario seems to be the only way I'll be able to get my foot in the door.