All Forum Posts by: Jeremy England

I agree that the 100k loan was mistake for what i used it for. 

The home is in my name. Im past quicken. They just are not competitive.  Which is strange because they offered the best deal on my personal res

Ofcouse i would have liked to get this property lower. I initially offered 57. Their asking price was 69.  

 Yes. Appraised at 100

Its a valid question.  If you are borrowing for the down payment you are essentially 100% financed.  Account for repairs and expenses.  How much are you left with?  

Amortize the 40k over 5 years at 4% and see how much it is.

If the numbers don't work, find another deal that you can put that resource to good use

Hi Jay, I have both of your books from previous versions and listened to the podcast last week.  

What would you say the optimum ARV is for the projects you do in your market. When I was looking to flip a house here some months back, I was having a very hard time finding something I think I could turn a worthwhile profit on. I set a target profit minimum at 15k. I found financing costs were eating up alot of the profits.

Another good point in todays market is whatelse am i going to do with the money. 

When i bought this place, stock market was doing great so there was an opportunity cost in using cash

Not so much now, and for the past 6 months. Stocks have taken a hit so if i make anything on this project this year its better than the stock market which is in the red for the year

Oh i get that. Im not talking about higher end. Im talking about high enough to get a better roi.  

i Think higher end is def more risky in this market.  Mistakes cost more money but less pct.  but i think cashflowing that high is unlikely.  To get adequare rents on a 300k house youd need like 2500/mo to make it worth it.  

The cost of rehabbing would have been the same for this house and a house worth 120. Refinancing a 120k house is about what a 100k house refis for. 

I think the 120 price range is that sweet spot where you get the biggest roi  with the least amount of risk

That is true. CoC return is still very high

looking back, If i target houses with more value, I think i may come out better.  The cost of financing a 120k deal isn't much more than a 100k deal.  In terms of taxes, insurance, prepaids, origination etc.  

I honestly don't know how anyone makes money doing this in the 60-80k range.  Financing costs eat up a ton of a percentage

oh its successful, just not without cost.  Im not discouraged, just wasn't as successful as i envisioned.  

I like to view things as realistic as possible. In terms of equity,  the house appraised for 100k, not sure I could actually sell for tht much though.  Lets call it 95k.  Given all the rentals and rehab jobs in it.  Then i would need to pay  realtors to sell it.  So, assuming a price 95k, realtor cost of 5000, now i'm down to 90k, take away my costs of 78k and i'm down to realistically walking away from the deal with about 10-12k.  More like 10 because every month that I keep it my holding costs are going up via the sofi loan interst of approx 600/mo.

If compared to a traditional transaction, i would have paid 20% down and closing.  So im still ahead in that regard.  Just not hitting anything out of the ball park. 

 I mean if I'm paying 5000 of my own money in it, then netting 450/mo in rents, itll be like a year before i'm in the black.