All Forum Posts by: Jason Waldo

Quote from @Harrison Colunga:

I know in Southern California standards $35k is not a lot and wont get me as far as if I were to start out of state. I would start out of state but I have 0 connections and get analysis paralysis while trying to find a solid market. Especially in this economy I am nervous to start. Any suggestions? 

I live just outside of Kansas City and find deals fairly often. I purchased 3 properties this year and could easily make something happen in this market with $35k. I own rentals and also own a handyman/construction company. If you want connections my door is wide open and am passionate about helping new investors out. I help a lot of out of state investors. Feel free to message me.

Quote from @Bob Stevens:

Quote from @Jason Waldo:

Quote from @Bob Stevens:

Well, you want criticism, ( DO NOT be offended, learn from it) no equity, and little to no cash flow, note is 1500, plus you will have repairs and vacancy. On your next deal pay less (should never be more then 70% all in of the ARV, )

All the best 

 Bob,

Lol, would take a little more than that to offend me. I appreciate you commenting. I do have questions for you regarding your comments so I can understand your train of thought better if that's ok? 

You said there is no equity but there is $35k of equity and there is $660 of cash flow with all I put in of $85k is approx a 9% CoC return without calculating any phantom cashflow or appreciation into the numbers. I do agree that I wasn't all in at your 70% ARV but the other metrics still worked on well enough for me to be happy with the deal. I am all in for about 88% ARV which is significantly higher than the 70-75% ARV.

As far as the repairs that will need to be done I own a handyman/construction company and handle all the repairs myself. There is little to no cost with repairs on that end and with the updates I did the repairs will be very minimal for years unless the tenant damages anything which the tenant would be responsible for paying for.

Vacancies in this area is also extremely low. I have owned rentals for 10 years in this area and the longest anything sits vacant for me is 2 weeks. I do still keep plenty of cash on hand in cash for an extended period of vacancy happens.

Looking forward to learning more from your perspective. Iron sharpens Iron!

 Glad you have thick skin LOL, Equity? You said PP 180K, PLUS 10% HM so I rounded to 200k, plus the 85k in rehab, Did I misunderstand? 

 Bob,

Ya its pretty thick, lol. The holding cost ( Hard money, Utilities, insurance and Rehab is all in the $85k ) Sorry for the confusion. 

Quote from @Bob Stevens:

Well, you want criticism, ( DO NOT be offended, learn from it) no equity, and little to no cash flow, note is 1500, plus you will have repairs and vacancy. On your next deal pay less (should never be more then 70% all in of the ARV, )

All the best 

 Bob,

Lol, would take a little more than that to offend me. I appreciate you commenting. I do have questions for you regarding your comments so I can understand your train of thought better if that's ok? 

You said there is no equity but there is $35k of equity and there is $660 of cash flow with all I put in of $85k is approx a 9% CoC return without calculating any phantom cashflow or appreciation into the numbers. I do agree that I wasn't all in at your 70% ARV but the other metrics still worked on well enough for me to be happy with the deal. I am all in for about 88% ARV which is significantly higher than the 70-75% ARV.

As far as the repairs that will need to be done I own a handyman/construction company and handle all the repairs myself. There is little to no cost with repairs on that end and with the updates I did the repairs will be very minimal for years unless the tenant damages anything which the tenant would be responsible for paying for.

Vacancies in this area is also extremely low. I have owned rentals for 10 years in this area and the longest anything sits vacant for me is 2 weeks. I do still keep plenty of cash on hand in cash for an extended period of vacancy happens.

Looking forward to learning more from your perspective. Iron sharpens Iron!

Quote from @Luke Perrin:

House looks great! Congrats on the cash flow!

I can tell you did a full remodel of the kitchen and bathrooms, put in new steps to the new front door and painted the exterior. All of that looks high quality!

What other changes did you make to get the ARV to 300k? What LTV were you able to get for the cash out refi?

If you only had a hard money loan for 2.5 months, were you able to get a cash out refi at that time? My understanding is you need to wait for a seasoning period of 6 months after purchasing a property before you can cash out refi. Is that not the case?

 Luke,

Thanks for leaving a comment! I redid all the hardwood floors throughout the home, new HVAC and water heater. Also put a new 16x20 deck on the back. We also had to raise the entire back of the home 3-1/2" it was slopping pretty bad. 

So the way I get my money back out of the property is a little different than your standard cash out refi. I use a specific kind of loan. The loan payment goes straight to the principal first every month instead of interest first. I also have the option to get my equity out of the property up to 75% ARV just by transferring the cash to a checking account. Then every month when I make the payment for the house it starts reducing that amount I borrowed. Its basically like a giant HELOC.

This way I can keep borrowing the cash and paying it back, borrowing the cash and then paying it back without having to refi the property every time I want to extract the equity from the home. 

Hope that helps!!

Jason

Quote from @Alex Gunnerson:

The place really looks nice and it looks like the profit wasn’t bad either. Great work!

 Alex, thanks man! It was a lot of work to get done in 2.5 months. But it all came together. I put in a decent amount of time into this project along with my employees. It took all of them to get this done. 

So I have a property that I would like feedback on. I just finished this renovation on this property and got it rented out on October 1st. Let me know what you think about the numbers and the work. Even with these interest rates I am still finding deals out there.

Purchase Price: $180k (Used hard money at 10% interest for 2.5 months)

Rehab: $85k (Used my own cash)

ARV: $300k

Rent: $2195

Mortgage: $1535/Month

Good morning. I own a handyman company in Kansas city and work with a lot of the PM in the area. I personally like and use kc home rental for my rentals. They have always done a great job for me. Message me and I will give you my poc.

jason

I am a handyman and work for a lot of management companies around here and own rentals myself. I personally use kc home rental and they do great! If you need a POC for them you can message me for it.

hope this helps!

jason

Quote from @Mackenzie Fischer:

We are looking for a experienced property manager for a single family 3 bed 1.5 bath home in Overland Park KS. Wondering if anyone has a good recommendation.

I have used kc home rental for years and they have always done great. I also own a handyman business if your looking for any maintenance to be done.

Amir,

i own a property maintenance company and can handle anything you have. I have all the trades covered with my team and I think you'll find that we are pretty competitive in our rates. If your interested I could help with your repairs. Feel free to give me a call or text. 8169449696