All Forum Posts by: Joe Alonzo

nice! how did the 1st duplex go? i bought a duplex myself which is my current rehab now!

 happy to see you accomplish your goals , congratulations keep up the good work!

The numbers are tight , the cash flow is negative the 1st year (not looking good) , also I didn't see the other 3k for the refi closing so all in all (6k in closing cost) with the market like it is you should be able to make/ find a better deal. a couple of options would be to do the work yourself and cut the cost of the 20k you have to put in it, move into it and pull 80% out that would give you 124k, negotiate the price lower . I don't know the market in nw Nashville but for me the "money" is moving way too slow ( personally don't want to wait until year 2 and only get a $1500 profit ) I would have to pass on the deal. 

As a brrrr investor myself in Louisville ky the 1st problem I see is your numbers, I would not have taken that house even if I lived next door and here is why. house 90k, rehab 45k = 135k invested , and you think you can get it apprized for 150k , ok lets say it did . so as a investment property lets just say your able to get 75% on the refi that would give you 112,500... you invested 135000 - 112500 (refi check @ 75% of 150k) = 22,500 left in the deal + closing cost ect.. it was a bad deal from the start, then on top of this bad deal you hire a contractor for another 55k (is this your dream home or a brrrr?)  then justify spending that "tuition payment" money , yea you just paid for the school of hard knocks, now we are talking 77,500 left in the deal , live and learn buddy don't let this one bad deal knock you off your dream were all here to help each other , thanks for the post!

For my 1st property ( my personal home bought 4/25/19 ) I used a loan from chase bank for 67k , closing cost 3k , rehab took 4 months (5k) ,I made sure I could Refi after 6 months .... so I went back to chase bank for the refi right at 6 months ( I had found another deal) and the same loan officer acted like I couldn't refi until 1 yr and kept wanting me to get a FHA loan. then she said I could refi after the deal was already gone. so I spent a couple more months adding sweat equity into my home . After 9 months I Refi the property with Eclipse bank ( smaller bank)(closing cost 3k) ran into a 1 problem the house had gas heaters that count as space heaters in the home appraisel so the underwriter would not approve unless we had HVAC, so I went through with installing the Hvac bc I plan on moving and section 8 this house (6k) the house appraised at 139k, I have no $ in this deal and 30K in equity, 2/18/2020 complete

1. make sure you find a loan officer that is knowledgeable, upfront, and credible (they stick to what they say) I didn't like either bank I did business with ( I will try a different bank next time)

2. make sure you know the credit score it takes to get a refi usually the better the score the less it will cost you

3. make sure the bank that you choose gives you the ARV of the home not what you bought the home for and how much you put into the home

4. I save $ by doing the work myself

5. keep in mind your debt to income ratio, banks want to know if you can afford to pay them back

6. know what adds value to your home and the comps in the area

7. make a killer deal happen, don't shy away from rejection , make sure the numbers make sense, enjoy the journey of real estate , love what you do and you'll never work a day in your life 

Good luck to you!

@Richard Montoya I’m curious to know what  Applications you use or extras you buy for a Apple MacBook for your real investing ? I’m looking at buying one for my investing needs , also what printer works best with these ?

@Chase Cadle I’m interested when you figure this out myself , my brother and I are investors ourselves. We have just finished our 1st brrrr in the east end of Louisville and now investing in 2 duplex’s in southern Indiana. We do everything 50/50 between ourselves and now have multiple people wanting to invest with us. Which lead me looking into starting a llc so thx for the info, good luck!

@Niyi A. Can you send me your connection in Louisville that deals with HVAC ? Thx

@Joe Alonzo thx for you guys opinion I appreciate it!

Recently purchased my 1st home in April 2019 , rehabbed it and now in the process of pulling the Equity out to purchase another home ( had no problem getting this 1st loan with the homes gas wall mounted heaters) . The home uses 2 natural gas heaters (dyna-glo 3000 BTu), house was built in 1950 (older homes used these gas heaters as a heat source in the area) and is in the upperclass area where newer homes have been built and continue to be built ( which newer homes have central heat) , I just had the appraisal come back to the lender is saying that “” Appraisal stated The heaters aren’t normal for the area this is a comparable item The subject property doesn’t exist the area and/or comps used” so the underwriter won’t approve the refi , what do you guys think my next move should be? Add central heat to the home? Challenge the appraisal? Or some other idea? I’d like to hear from you guys!