All Forum Posts by: James Lemon

I'm a little confused on your 1st Property. You called it a Conventional mortgage but those are hard to come by with 20% down and only financing $24k... not to mention the mortgage cost of $415 is absurdly high for that amount. I'm guessing you got a short amortization (10 year?) portfolio loan with a credit union? I'd just urge you to be careful on terminology. Looks like the same questions could be asked about the 2nd property as well.

I'd just be careful on your leverage. Buy, rehab, cash out refi, rinse and repeat is a great way to quickly increase your portfolio but your overall cash flow (assuming 50% expenses) is pretty low. You're -$90 on the 1st property, +$100 on the 2nd, +$30 on the 3rd, and +$85 on the 4th. That's 4 separate risk items generating about $125 cash flow a month. That's pretty lean, have you heard about the $100 a door standard some people look for?

My only other thought is to really understand your exit strategy. I'm a buy and hold forever sort of investor, are you? Homes bought for $17,000 aren't generally going to appreciate well at all, there's a reason they were sold for $17,000. Selling in a hurry will leave you at the mercy of other vulture investors, not many owner occupied types in those areas I'm guessing. Your exit strategies will be limited in my opinion, just be aware of that.

No exit needed, here in Louisiana we do not have the prices you have there, my first purchase was 30k and I put 20% down. I am not looking for an exit strategy on properties just using leverage to get units up. As far as Terminology excuse any mistakes.

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Last November I purchased my first Investment property! After ten years in Real Estate I copied the strategy of two investors that I had worked with and learned from. I had no idea about Bigger Pockets, but looks like I fell right into the BRRR category.

• First Property Conventional loan with 20% down purchased at 30K. Note $415 Tenant pays $650.

• Second Property Conventional loan with 20% down purchased for 18K. Note $225 tenant pays $650.

• Third Property was a Bank foreclosure for $ 21k purchased with $5k down and a interest only loan as bank did not want to wait on Conventional financing. This property I invested $7k in my own money and totally renovated. Cashed out 20k after paying balance off and paid cash for the 4th property. Mortgage $320 tenant pays $700 monthly 4 bedroom 1.5 bath.

• Fourth property purchased as foreclosure for $16k and total renovation cost of $6k total investment $22k. Paid for repairs on all out of my reserves and commission from other sales. Four bedroom 2.5 bath rents for $800 monthly and payment $315 on business line of credit.

• Currently I am using the cash out of the fourth to pay for the two properties that I have financed and another small loan. I made an offer on two duplexes that are generating $2300 a month. My plan is to use the two owned properties for $50k and add $10k of personal funds to pay toward duplexes. Loan amount should be $80k with the bank and four properties that generate $3600 monthly

• Any thoughts

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Originally posted by @Kimberly H.:

We don't give keys until all utilities are in their name, although in some cities we can't do that with the water since they want a final water meter reading as of the lease start date. In those cases we give tenants a two week deadline to get it done with the understanding we will charge them for any water usage up to the deadline. Also, in our lease, for any utility they don't pay that we need to pay on their behalf (for example if they decided to cancel a utility) we charge them a service fee to pay it on their behalf to motivate them to pay it themselves. Last thing we need is more bills to pay. Any future rent payment would first go to any outstanding utility bill before rent.

I really like this and will add it to my lease terms, thank you!

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Interesting scenario, I'm with the opinion of you have taken the property off the market for considerable time. Anything you give back should be appreciated. Lastly when I worked in the casino Years ago, I learned that all the procedures came a a result of the casino losing money one way or another. My point I'll be adding this clause/ procedure to my leases. Thanks for sharing!

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Glad to see the responses 2 weeks ago storm dropped a tree on one of my rentals. Mother and Daughter shared home and are deciding to not move back in together. I refunded the deposit but did not refund half month rent, I encouraged them to obtain renters insurance when they moved in.

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In San Juan Puerto Rico currently back Monday let's talk.

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Originally posted by @Katie West:

@James Lemon Welcome! I am just looking to get started as well, and your story so far is very inspiring for me!

@ Katie West I live in Shreveport small world.

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Originally posted by @Sammie J. Bell:

@James Lemon Good work and very motivational; I love your success story! Any pointers on convincing the bank to sign off on multiple loans for investment properties?

I live in Shreveport so definitely feel free to ask any questions.

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Originally posted by @Jim Lally:

@James Lemon I love the the rehab to rent strategy. Keep me posted on your progress but it looks like you've definitely been achieving success so far!

Yes Jim! And by being ahead a house ( zero mortgage) I will take my time and try to start doubling properties. I'd like to get to ten this year then focus on duplexes.

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Sammie that is my next step as I plan to use the latest one to buy two. Katie I'll share all I know.

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All Forum Posts by: James Lemon

James Lemon has started 2 posts and replied 12 times.

Post: First year of Investing

Post: First year of Investing

Post: Tenant hasn't put water bill in her name yet. Going on 3 months!

Post: Broke lease terms on day 1

Post: Tenant was evacuated for 3 days, how to handle?

Post: Residential Real Estate Broker/ Teacher

Post: Residential Real Estate Broker/ Teacher

Post: Residential Real Estate Broker/ Teacher

Post: Residential Real Estate Broker/ Teacher

Post: Residential Real Estate Broker/ Teacher