All Forum Posts by: Johnoson Crutchfield

Thanks Dennis M.  Some days I feel like I know exactly what I'm doing and other days it's like what the heck! 

My goal is 10,000 net monthly.  This is why I'm thinking about portfolio loaning them to a 30 year product.  It would get me pretty close to 10,000 net with current portfolio.  Having them on a 15 year product is cutting the cash flow significantly, but would allow me to pay them off sooner.  I woudn't mind having 80-100 doors, hitting the net income goal while helping put people to work in my community.  But I would prefer to just have the monthly net with a few doors as possible.  I'm 31 with this current portfolio.  So I'd love it if you have suggestions for where I should move going forward.

PS I don't think any of us buy doors just to buy doors.  We're in it for BiggerPockets for ourselves and those we come into contact with. 

I have now acquired about 35 rentals in a very short period of time (15 months).  Almost all of them are on 5 year/15 amortizing notes cash flowing an average of $125/month.  I only have one private money investor who invested once, and I've been BRRRing with that money to get this far.  I'm starting now to feel like I need a full-time employee if I want to keep growing, and local banks are slowing down on how fast I can acquire new rentals.  I've got 3 properties I plan to flip before the end of the year to try to help build some cash reserves.  I want someone to look at what I've written here and help me decide 1) whether to grow and add employees and 2) whether I need to hire a mentor to help me make sense of where I am right now.  Some days I feel like all the maintenance calls checks going out each month just isn't worth it, but most days I want to head towards my goal of $10,000 cash flow a month.  I've also thought about reaching out to one of these major portfolio lenders and putting everything on more fixed long-term debt to increase my cash flow, but I like the idea of paying everything off in 15 years.  I know interest rates may go up in 5 years though......  Maybe this when I start writing a book?   I guess this is scattered, but let's see what kind of responses I get.  

He won with this deal.  I just bought it from him for 121k.  I plan to get the rents to 1800/month.  Not sure about keeping the property manager yet.  Just depends on the vibe.

Randy,

I'll hit 31 units by the end of this year if everything goes to plan. All of them will be leveraged at about 85% of ARV on 5 year commercial loans amoritized at 15 years. My plan is to use the cash flow first to build six months of expenses in savings, then to snowball paying off the properties. My business will have this rental side with 31 units netting 5k a month paying off the debt in 15 years, and another side doing wholesale/flip deals to help accelerate debt payoff. I'll be open to selling my portfolio at anytime too as a way to raise capital. My goal is to get on an episode of Bigger Pockets. As I am working a lot this year to build my portfolio in an effort to create a successful business. I know I've been extremely aggressive in acquisition and also have moved quickly, but I felt like this was my year to go after my dreams! I'm open to feedback as a lot of what I plan to do and have done is coming right off of bigger pockets.

Just thought I'd provide an update.  I've now used the 80k from the private investor to do the following:

1) Purchased two houses for 44k. 15k in renovations.  Refinanced at 92k (Rents 1425)

2) Purchase two more houses for 82k. Plan to renovate for 15k.  Plan to refinance at 120k.  (Rents 1800/month)

Taking the extra equity I am pulling and putting into a savings account to buy a property free and clear.  What do you all think?  Feedback?

SO give us the scoop.  How many units?  What's the cash flow?  Did you do it all in 2 years?

So here's an update.  I've got the 80k in my account.  Here's my plan. 

I have 3 properties under contract.  I'm going to buy them in cash, fix them up, and refi them with local community banks.  My plan is to get all my cash and reno costs back out due to the price point at wish I bought the properties.  Then I'll have the 80k to do it again.  What are you all's thoughts?

31k Value 55k Reno 5k Rent 800/month

49k Value 70k Reno 0 Rent 800/month

14k Value 35k . Reno 12k Rent 725/monnth

Hey I’ve got an investor who is willing to invest 80k in my buy and hold/flip real estate business. The interested rate is 10% paid monthly with the total amount due back in 3 years. My thought was to have cash to buy deals st 75% of ARV and then refinance them to get cash out. I would keep doing this until I had my goal of 30 units. With this methodology I should be able to keep most of this capital in play and if I get good enough deals I should be able to return the money and also have 30 units by the time 3 years passes. What are your thoughts?

Is this a good deal.  Should I go for it?  Up for sale are 4 units on the same lot.  One is a single family home recently rented for $725/month.  The other unit is a vacant 3 unit building.  Full rehab of all 3 units is going to cost 60,000.  Aquisition 90,000.  All in at 150,000, I'd have the potential to have the following income from four units.

$725- Single Family House (Already Rented, Little Rehab Needed)

$800- Three Bed 1bd/1ba Unit (15k rehab)

$650- 2 Bed/1bath Unit 2 (15k rehab)

$600- 2 bed/1bath Unit 3 (30k rehab)

I can get a purchase loan from a community bank at 75% purchase and 75% rehab retroactive. Hard to know what the ARV is on this type of building because most of them sell off market in my area and are in pretty bad shape when they sell. Can I BRRR This and get alot of my money back out of it after it's fixed. Suggestions?