All Forum Posts by: Josh Chastain

Thanks! I'll have to reach out to Jordan. What's your experience been like out there? 

Have you been able to find cash flow positive deals this year? 

Lubbock, Texas: I'm nearing a deadline and need to identify a 'like-kind' property to complete a 1031 exchange. I'm considering the Westmont community (50th and Milwaukee Ave.), which seems to be a developing area with a lot of potential. I've noticed a significant amount of new construction there. Does anyone know if these new builds are selling?

Most importantly, is it realistic to expect rent of $2,000 or $2,500 for a 4-bedroom, 2-bathroom (4/2) property in this area? Currently, I see 3/2 properties renting anywhere between $1,300 to $2,000 in this area. 

Westmont

4/2 , 296k, 2,050 sqft

3/2, 271k, 1,760 sqft (cheapest 3/2) 

With interest of 6%, with 25% down 

I estimate a monthly pmt of 1,322 + taxes at rate of .0209. After PM, insurance, vacancy, HOA, maintenance (shouldn't be much) it looks like I'll be lucky to breakeven.

I'm also looking at properties in Burgamy Park North, located just east of Terra Vista Middle School and north of Route 114 or 19th Street.

I would greatly appreciate any insights or experiences on the feasibility of achieving rents over $2,000 for a 4/2, as well as the general demand for 4/2 and 3/2 homes in these areas. Thanks a lot for your input!

Schools are in the Friendship school district. 

@Remington Lyman Columbus, Oh

I'm a relative newbie. In the past two years, I've added two duplexes in C areas that have positive cash flow. My goal is to try STR using a second home mortgage ideally. My situation is a bit different in that I work overseas and my housing is paid. My old primary residence (rented but doesn't cash flow -200 or 300 a month) has 235k of equity has 8 yrs left on a 15 yr and currently has a variable HELOC at 145k. I used this to acquire the two duplexes, pay cash, close fast, get a good deal, refi into 30 yrs. Yeah, I doubled paid fees.

I'm now in the process of refi cashing out the primary after finding a group to do it as my primary residence for 200k equity (keeping the monthly payment low so it breaks even or + cashflows) but now I find myself stuck in the paralysis of analysis. Here are the pros and cons I see. What am I missing? My overall goal is to acquire more and increase cash flow. 

I'm not interested in selling...I'd be crushed by taxes and it would be a place to live if stateside. 

No Refi 

Pros: HELOC remains, use for the downpayment on STR, riskier with a variable rate, HELOC is unable to access as much equity.

-  in 8 years, it'll be paid off, and obviously more equity 

- I could re-eval, when I return Stateside. It's nice to know I could move into the place and refi to a low pmt if needed 

Cons 

- missing out on investing 200k, really I just need to beat 3.375% return

Refi\Cash Out 

Pros: put the equity to work, I like the liquidity of cash and its tax-free, no worries about variable interest, acquire cash flowing STR property

Cons: pay 9k closing costs, the rate of equity build-up will dramatically decrease once its 30yr 

You made it through the post! Thanks for reading it and happy to hear any input from the more seasoned folks out there.

@Jeffrey Schratz I used and paid for mashvisor about a year or two years ago. Personally I thought it was terrible the data and listings were not recent enough to provide any actionable edge. The details given aren’t accurate either.

I've been using AirDNA and find it vastly better personally. Especially if you're looking strictly for STR.

They have valuable free trend reports too. There’s a lot of comparison vids on YouTube too.

Mashvisor talked a big game but that’s it from my experience. Maybe it’s improved by now.

@Michael Scarpa, count me as interested too!

@Brandon Sturgill does it seem reasonable in your opinion?

I went for points to increase cash flow since I plan on holding it for 10 years. Thoughts?

@Erik Sherburne I'm in the middle of refi and this has directly impacted me. Last Friday, 3/12, 3pts = 3.375% now according to the lender its 3pts = 3.75%. Guess I should've moved faster.....This is for a duplex in the Columbus, OH. Although the news article, linked below, states it goes into effect April 1st but I suppose since the news is out the market has already adapted so even if I switched lenders it wouldn't matter. 

-----the email form the lender does a better job describing the change and perhaps will help somebody else, see below------

Below are the current rate options. Effective late Friday our industry put a new loan level price adjustment in play thanks to the limitations Fannie Mae put into place - http://www.mortgagenewsdaily.com/03112021_loan_underwriting.asp
With that said here is the option based on a value of $190k and a loan amount of $133k - 70% LTV.100.00 is the 'par' no cost option. Anything under and we have to charge as a 'discount' to get back to 100.00.We could offer 3.75% for a cost of 3pts

If we're able to keep the LTV under 60% there's a bit of savings.The LLPA's are much less and we'd be at 3.625% for 2pts.

Joshua Culbertson Did you find a meetup virtual or physical? I'd be curious what top 3 questions or topics are for experts? 

For me as an out of state investor I'd love to hear more about seeing through a successful BRRR or flip. I see managing the contractors or GC as the biggest hurdle.

As an OOS overseas having a third party providing photos is invaluable. Just the mere fact of somebody else showing up to take photos may encourage the contractor to be more honest in my opinion. Thanks! @Tyler Campbell for the service and quick turnaround.

I definitely agree that’s there’s a need for the service. I like the idea of three different packages at different price pints. Being your own GC or PM is an entirely different ball game and a lot to take on with no prior experience. I’d recommend teaming up with or working with somebody in the area to learn more on the GC/PM side and to make connections.