All Forum Posts by: Joey Moon

looking for reliable contractors in the hartselle alabama area.  needing full remodels and additions added and everything in between,

@Don Konipol

Very good! Thank you Don. That’s the kind of information I was wondering about. Appreciate your time!

Hi guys, still pretty new in the real estate world and had a question on what strategy would be best in your opinion. I’m in the middle of my 3rd fix and flip and my circumstances in life have suddenly changed where now I am thinking about purchasing this property to live in myself. I purchased this property for 86,000. I have put about 20,000 in it, might be closer to 25k once completed and am looking to sale for 145,000. Should be a pretty good profit as far as I’m concerned, but now that I’m thinking of purchasing this property personally( I use a line of credit for purchase and rehab), is it smart to try and get a mortgage for what I wanted to sell this property for(145k) and still make that profit or should I just try and get the mortgage for what I have in it (105-110k)?? I can afford the payments for the 145k mortgage pretty easily, but I wasn’t sure if that was a smart strategy or if I should be thinking differently or missing something important? I don’t plan to live in this property for a very long time, maybe a few years. I just wanted to get you guys opinion. I can’t see the downside of still making the profit, paying a mortgage for a few years and then selling for the 145k or maybe higher in a few years? What do you guys think??

I am trying to find a good rental in my area and I keep analyzing deals, but the rents in my are for the houses I can afford right now all rent pretty low 600-750. I can't seem to get my expresses low enough for any of them to cash flow. Am I missing something? Ex) 50,000 purchase + rehab 20-30k. ARV 100-110K. Rental income=700,Monthly Expenses= P&I $331, TAXES $25, INS $65, VACANCY @ 10% IS $65, REPAIRS @ 5-10% AROUND $50, IF MANAGED @ 10% IS $65 = $601 THATS 99 DOLLARS IN CASH FLOW AND I'M SURE I'M EVEN MISSING SOMETHING ON EXPENSES. This seems to be the case in every property I analyze no matter what I pay for it. How or what do you guys suggest to get rents up in an area that doesn't see many rents over 700 for these types of houses or get expenses lower? Thanks for the Help!!!

Just curious, what you guys think are the top lead generator if your just starting or don't have much money to invest in marketing. I know the usual driving for dollars or door knocking and cold calling are good strategies. Just wondering if anyone had some creative strategies that are fairly inexpensive.

So, if I'm using a line of credits to purchase and rehab a property and then want to refinance out with a conventional mortgage using the BRRRR strategy, do banks usually require the 20% down as they do with non investment properties?

Thanks a lot Tim. That is a big help!  That was going off of the full price of the complex. I just wanted see where the numbers stand without negotiating price.  Now I have a better idea of where I need to come in to make this deal work.  Thanks again!!

@Tim Herman makes sense. I know you don’t have all the details and a good deal for me might not necessarily be a good deal for you. but at what price does this deal start looking like something you would entertain?

Yes, I believe that is the way it is set up now.  I will know more when I go to look at the place this week.  I was just tryig to get a basic idea of where I stand if I run the numbers conservatively.  I also have the likelihood of owner financing.  Thanks Tim, I didn't expect that much of an expense for sure. I will take that into account.  I was thinking if the rood and HVAC were relatively new and the units had just been updated, I could drop that expense % down pretty low. but if that is the case then yes, that wouldn't be a return worth my time.

Hi guys!  I'm trying to do some analysis on my first potential 4plex here.  I'm not sure if I'm calculating and/or taking into account all necessary expenses.  I'm looking at a 1b/1b 4plex for 265k in Decatur, Alabama.  Rents on average are about 600$ a month, but i'm thinking I can get over 700$ a month. They are in a growing historic downtown, nice area, in good shape, wouldn't need much work. could probably put less than 10k in the entire building and that would just be small cosmetic things here and there. Property taxes are about 211/mo, insurance around 181/mo, utilities est. 150-200/mo and water/sewage 130/mo, and garbage 95/mo. With a P&I estimated at about 988. I come with a total of 1,805. Even if I rent the apartments for the low end of 600, that would be 2,400 with a cash flow of 595$. Am I missing anything here? I'M going to manage the property myself and I might even house hack and live in one of the units if possible. I know that changes the numbers if I were to go that route, but if my calculations are correct I could essentially live for free. Does this look like a good deal to you guys?  Thanks in advance for any and all help!!