All Forum Posts by: John Valence

Sorry guys, I missed out on some relevant data:

Yes, I will be living in one of the units, otherwise I cant use the FHA loan. That will reduce the rent to $2100 for the first year. And this is not in CA.

Hi Everyone,

Need to pick your collective brains on a residential multifamily deal I'm looking at.

The cash flow is very low, but the market is pretty competitive so I'm just undecided between

jumping the gun and actually owning my first multifamily vs waiting for a favorable market/next deal.

I'm going to purchase using FHA loan

Here are the numbers:

Purchase Price : $290000

Annual Taxes : $3286

Annual Insurance : (estimate) $1800

Down payment : 3.5% ($10150)

Interest Rate : 3.625%

PMI : 0.85%

Closing Costs : $6800

Upfront repairs : (estimate) $10000

Monthly rent : $2800

I'm usually very conservative, so use 8%, 5%, 5% and 10% for Vacancy, Repairs, Capex and Property Management respectively.

My calculations gave a meager cash flow of $114 a month. I'm still undecided because its one of the few deals on multifamily in the market. In this market rents have only been going up. The rents did dip for a years during the 2008 recession.

How soon can I refi into a conventional?

Thanks everyone,

John

Hello BPeers,

I'm just starting out investing in real estate. I have a fulltime job and starting this on the side for now. I'm trying to buy fixer-uppers in my city, but I see much better cash flow deals 25-35 minutes away from where I work (and stay).

How easy/difficult is it managing a rehab more than 30 mins away from work? 

For my first deal I'd like to do a live-in flip, but I'm a bit intimidated by the amount of travel time (> 1 hr.). 

Anyone in here who has done such deals? How difficult was it living and/or rehabbing this far from work? What are the pitfalls I need to watch out for?

Thank you @Matt Lefebvre and @Anthony Dooley

Hello Everyone,

I have a very basic question:

I've decided to buy homes from distressed sellers (absentee owners, pre-foreclosure etc.)

Can I use a mortgage to pay for it, or do they always require cash for it.

If I take a mortgage loan with a bank, will they pay the seller?

What if the property has lot of damage e.g. fire damage? Do I need to pay for it all in cash?

I would like to do Direct Mail Marketing. What are the chances of the seller, willing to sell or is there high chances of them not selling it, if I say I have to take a loan(since it takes time for the paperwork). Should I mention that in my post card? I may have to take an FHA or a conventional loan depending upon the cost of the house. I might be dried with my money, once I buy one property. Does anyone have any experience or advice or strategies on this? I am focusing to buy a multi family followed by a single family which on the second on my list.