All Forum Posts by: John Mich

Hey Andy, I'm definitely interested in a meetup if one ends up happening. I'll check that old thread. 

Delayed purchase financing is a Fannie Mae program that allows you to cash out of a property before the traditional six month waiting period you'd have with conventional refinancing. It's helpful if you're using hard money with a six month limit and want to BRRRR the place instead of flipping it.

sounds like a pretty good deal to me. 50th and R isn't too bad either. I'm sure you could find decent renters there if you were planning to hold it long term. Personally I'd try to get hard money and go with option 1, and then use delayed purchase financing to refinance once your rehab was far enough along to qualify. 

prior to 2013 you could find 10 caps on the MLS here. Not anymore. Things are pretty competitive right now, and while you're still going to find much better caps in northern LA county than in the greater Los Angeles area, I think you're better off looking out of state. I've bought a couple deals here since 2013 that are cash flow positive, but they were rehabs and took a lot of work to find and negotiate.

I may be interested, or know someone who is. May I call you to inquire about the details? 

No problem. It doesn't look like anyone else was planning to come anyway.  Hopefully we can do another meetup at another time

sounds good to me. Lets do noon.

@Andy Cross

Lunch time or dinner time? Is anyone else still interested? I'm free the whole day tomorrow, so whatever is most convenient for everyone.

What time on Sunday works for everyone?

Based on the Trinity Study, you could expect to be able to take 4% of your investment (in index funds) and have the principle amount retain its value, keeping up with inflation, theoretically forever.  

If you sell for $180k, and walk away with $70k in hand (assuming you cover some closing costs or pay a sales commission. I know you said you were hoping to do FSBO, so you might walk away with more) Invest that in index funds, and using the 4% rule for safe withdrawal rate you could expect to earn $233 per month.

You said you think the property could cash flow for $300 per month? Is that using the 50% rule? (over a long period of time you should expect to spend 50% of your gross rent in costs related to the property. E.g. Maintenance, Management, taxes, insurance, etc) 

This is, of course, without taking into account things like market appreciation or payments to the mortgage principle. 

I am personally scared to death of being a long distance landlord, but I know there are a lot of people here who are, and they do just fine.  My strategy is cash flow, and if and when my properties have enough equity that I can sell them and make the same return through index funds (which are essentially 100% passive) I plan to sell and never have to stress about a broken toilet again.   It sounds like you're pretty close to that point. 

Sunday 11/8 is great!