All Forum Posts by: Jerniel Diaz

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $218,000
Cash invested: $51,000

Down payment $43,600
Closing Cost $4,300
Rehab $2,000
Holding cost $ 1,000

Total cash up front $51,000

Regular Expenses:
Mortgag$712
Home ins: $ 80
Prop. tax: $200
HOA: $ 41
Total: $1,033

What made you interested in investing in this type of deal?

Other expenses to factor in:
Vacancy 5% (Orlando has 3-4% vacancy rate, but to be conservative)
Repairs 7% (7-10% is standard, mostly new items so went with 7%)
Cap. Ex 6% (roof is 8 yrs old, new water heater, 2 yr old HVAC)
Prop Mgmt 8% (standard 10% but received discount)
Total: $416

Gross rent: $1,600
Regular Expenses: $1,033
Other Expenses: $ 416

Net cash flow: $151

How did you find this deal and how did you negotiate it?

Bigger Pockets, agent negotiated lower offer price

How did you finance this deal?

Standard conventional financing

What was the outcome?

Purchased

Lessons learned? Challenges?

If you did your numbers right, you won't hesitate when the right deal comes on the market and you'll have confidence to pull the trigger quickly

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Gibson

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $218,000
Cash invested: $51,000

Down payment $43,600
Closing Cost $4,300
Rehab $2,000
Holding cost $ 1,000

Total cash up front $51,000

Regular Expenses:
Mortgag$712
Home ins: $ 80
Prop. tax: $200
HOA: $ 41
Total: $1,033

What made you interested in investing in this type of deal?

Other expenses to factor in:
Vacancy 5% (Orlando has 3-4% vacancy rate, but to be conservative)
Repairs 7% (7-10% is standard, mostly new items so went with 7%)
Cap. Ex 6% (roof is 8 yrs old, new water heater, 2 yr old HVAC)
Prop Mgmt 8% (standard 10% but received discount)
Total: $416

Gross rent: $1,600
Regular Expenses: $1,033
Other Expenses: $ 416

Net cash flow: $151

I wanted to live and retire in Orlando

How did you find this deal and how did you negotiate it?

Bigger Pockets, agent negotiated lower offer price

How did you finance this deal?

Standard conventional financing

What was the outcome?

Purchased

Lessons learned? Challenges?

If you did your numbers right, you won't hesitate when the right deal comes on the market and you'll have confidence to pull the trigger quickly

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Gibson

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $218,000
Cash invested: $51,000

Down payment $43,600
Closing Cost $4,300
Rehab $2,000
Holding cost $ 1,000

Total cash up front $51,000

Regular Expenses:
Mortgag$712
Home ins: $ 80
Prop. tax: $200
HOA: $ 41
Total: $1,033

What made you interested in investing in this type of deal?

Other expenses to factor in:
Vacancy 5% (Orlando has 3-4% vacancy rate, but to be conservative)
Repairs 7% (7-10% is standard, mostly new items so went with 7%)
Cap. Ex 6% (roof is 8 yrs old, new water heater, 2 yr old HVAC)
Prop Mgmt 8% (standard 10% but received discount)
Total: $416

Gross rent: $1,600
Regular Expenses: $1,033
Other Expenses: $ 416

Net cash flow: $151

I wanted to live and retire in Orlando

How did you find this deal and how did you negotiate it?

Bigger Pockets, agent negotiated lower offer price

How did you finance this deal?

Standard conventional financing

What was the outcome?

Purchased

Lessons learned? Challenges?

If you did your numbers right, you won't hesitate when the right deal comes on the market and you'll have confidence to pull the trigger quickly

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Gibson

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $218,000
Cash invested: $51,000

Down payment $43,600
Closing Cost $4,300
Rehab $2,000
Holding cost $ 1,000

Total cash up front $51,000

Regular Expenses:
Mortgag$712
Home ins: $ 80
Prop. tax: $200
HOA: $ 41
Total: $1,033

What made you interested in investing in this type of deal?

Other expenses to factor in:
Vacancy 5% (Orlando has 3-4% vacancy rate, but to be conservative)
Repairs 7% (7-10% is standard, mostly new items so went with 7%)
Cap. Ex 6% (roof is 8 yrs old, new water heater, 2 yr old HVAC)
Prop Mgmt 8% (standard 10% but received discount)
Total: $416

Gross rent: $1,600
Regular Expenses: $1,033
Other Expenses: $ 416

Net cash flow:

Wanting to eventually live/retire in Orlando

How did you find this deal and how did you negotiate it?

Bigger Pockets, agent negotiated lower offer price

How did you finance this deal?

Standard conventional financing

What was the outcome?

Purchased

Lessons learned? Challenges?

If you did your numbers right, you won't hesitate when the right deal comes on the market and you'll have confidence to pull the trigger quickly

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Gibson

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $218,000
Cash invested: $51,000

Down payment 20% - $43,600
Closing Cost 2.5% - $ 4,300
Rehab $ 2,000
Holding cost 1 mo. - $ 1,000

Total cash up front $51,000

Rent: $1,600

Regular Expenses:
Mortgage: $712
Home ins: $ 80
Prop. tax: $200
HOA: $ 41
Total: $1,033

Other expenses to factor in:
Vacancy 5% (Orlando has 3-4% vacancy rate, but to be conservative)
Repairs 7% (7-10% is standard, mostly new items so went with 7%)
Cap. Ex 6% (roof is 8 yrs old, new water heater, 2 yr old HVAC)
Prop Mgmt 8% (standard 10% but received discount)
Total: $416

Gross rent: $1,600
Regular Expenses: $1,033
Other Expenses: $ 416

Net cash flow: $151

What made you interested in investing in this type of deal?

Wanting to eventually live/retire in Orlando

How did you find this deal and how did you negotiate it?

Bigger Pockets, agent negotiated lower offer price

How did you finance this deal?

Standard conventional financing

What was the outcome?

Purchased

Lessons learned? Challenges?

If you did your numbers right, you won't hesitate when the right deal comes on the market and you'll have confidence to pull the trigger quickly

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Gibson

Thinking of investing in the Pittsburg/Capitol Hill area as well towards.  Would you say it's still a little overpriced in this current market?

@Robert Flowers

Could I ask you how did you go about renting your homes to disabled vets?  My brother is a disabled vet and I've been meaning to reach others like him.  I own a property in Memphis and wanted to do something like that to better the community there as well.

Hello BP family,

So after taking the advice of Brandon Parker and learning what's a good deal by analyzing 100 bad ones, I came across this one, located in Memphis.  The area is decent (according to multiple real estate agents, other BP members and the Trulia crime map), and I cross-referenced rental comps on Craigslist, Zillow and Rentometer.  The issue is, if I'm conservative with my numbers (which I like to be since I'm just starting out in this market), I get very very low cashflow.  But with rule of thumbs like the 50% rule, it looks pretty good.

I'm using a combination of the BP calculator and the 4 square method to analyze this, but I'm wondering if there are more experienced investors out there who could help me out and see how I can improve and what I might be missing in my calculations.  I will be doing conventional financing, and used a mortgage calculator with the rate of 5.9% interest, 30 year fixed.

Here it is:

So am I doing this correctly?  And is this a good deal or not?  Thank you for everyone's help!

Hi BP family,

I'm looking to get started building a team in Jacksonville, FL. Does anyone have a buyers agent they recommended, specializing in BRRRR/multi-family properties? I'll be sure to mention your name to get that referral bonus for you. Thank you!

@Michael Randle Thank you so much for breaking it down and giving great examples of how the VA loan could be used

@Aly Vizcarra Thank you for the info!  Right now we're looking in Jacksonville, Fl but pretty much open to anywhere.  We're just getting into it so still have to focus in on a market.

@Chris Mason Thank you!  This was EXTREMELY helpful and answered so many questions I had and more.  And since you're from the Bay Area, we might consider getting a loan through you in the future.

@Brian Garlington  Great advice Brian, appreciate it very much.

I got really excited after learning all this, and then I brought the idea up to my brother.  He was gung ho until he got to the part about owner-occupancy.  He said he was unwilling to move to some place by himself for a year (and we live in the Bay Area and everything around here is totally out of our range).  So that made me start researching the minimum requirements for owner-occupancy and penalties like mortgage fraud.  It seems like I may have hit a brick wall if my brother is unwilling to physically move to the unit.  Does anyone know if there's a work around on this?  We definitely don't want to do anything against the law.