All Forum Posts by: Josh Mitchell

Welcome @Melvin Kim Hope to see you around the area!! Let me know if I can help with anything!

You will be doing a 1031 exchange on this money I assume? With $200k you could get into a $1mil property which could provide you with multiple units based on your buying location. I agree with @Mark Creason that the 24% CoC return is high. If you can find that, please let the rest of us know where it is!!

With the refi money, you technically would free up some monthly cash flow by not having the medical/car payments. Could you simply refi for that amount, pay off the debt, have a lower mortgage, then stay disciplined and save the old car payment/medical payment every month in your savings until you hit a number you want to purchase another? This will allow lower LTV, loan mortgage amount, maybe still provide CF??? Just giving you another angle to look at.

@Janice Reynolds your DTI and credit score seems to be in fine shape. I would continue to save for the down payment, however, I would 100% pay more than the minimum payment on the credit cards. I am assuming you would be buying a cash flowing property to help pay off that credit card debt of course.

Welcome @Greg McClellan Always good to see others in the area looking to get in "the game"! Let me know if I can help with anything. Welcome to BP!

@David Harley there are banks that will do an "as-completed" appraisal for you to get value on the property. You can put together your list of fixes/improvements you plan to do, submit them, and have the value assessed as if those improvements were completed. You will have to pay for this of course. If you can become a market expert and find the things tenants like, what houses that sell for more than yours has, that is a cheaper approach.

@David Harley the guys above hit the nail on the head. Buy property..... fix/improve..... increase value...... refinance at a higher price (75% of 200,000 is less than 75% of $300,000) .......use the (tax free) cash you receive on refinance, and buy next property. This strategy allows you to keep very little, if any of your own cash in the deal. You can essentially use the same money over and over. There are seasoning requirements to deal with or get passed, but this is the strategy at is most basic level. 

@Cynthia Miller in my state it costs $750 to set up series llc then $50 for each additional series. The regular LLC is $500 per LLC. The Series LLC divides the liability into each seperate series so the liability is exclusive to that series or property.

@Cynthia Miller Look into a series LLC. You can set up a master LLC with each "branch" being its own LLC under that umbrella. More cost effective than setting up individual LLC's for each property. While this can be a good strategy, I don't think you need to even consider an LLC or series LLC until you have multiple (4+ properties). A good umbrella policy should suffice until you start to accumulate more.

@Jill Buhrfiend Absolutely, I wouldn't touch anything that didn't. I have found them through MLS, and then through people knowing a specific area I like. Neighbors of surrounding properties have thrown me leads to units/houses in the nearby area I already own in.