All Forum Posts by: Juan Rosado

For all you experienced investors out there, could you please refer a hard money lender to work with during this time? I already have one in mind but it would not hurt to have a couple more. Preferably someone you have worked with in the past.

Thank you.

@Peter Korty

Thank you for your repply.

1. Could you please explain why did you concluded that I was doing a house hack? Just out of curiosity because my intention is NOT to house hack this property. Just to BRRRR. I would like to know to understand if there is a mistake.

2. haha! What the Hard Money loan officer said when I contact him is that his firm are 100% LTC "for all hard costs (purchase + repairs)" and with no downpayment. Maybe I am having a hard time understanding this concept. If this property costs $112k and I would spend $40k in repairs (total: $152k) that means that they would finance me $152k right? If they are 100% LTC. Also, the property value in my area changes alot from year to year. I understand that 8% is a little high, but I believe it is certainly not 2%. Maybe a little over 3% I would need to get with my realtor on this. I agree that the estimated expenses should increase. Thank you.

3. I do think this property is not a home run, but it could work given the price lower and refinance a little bit more than established.

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*This link comes directly from our calculators, based on information input by the member who posted.

This is something I don't understand. The table on the bottom says that If I were to sell this property in 4 years I would only be making $3k? I don't understand. If the property value in four years is $176,864 and the loan balance is $91,178 shouldn't I would be making $85,686 ($176,864 - 91,178 = 85k) if sold?

@Tim Herman Thank you for your feedback sir!

Hi there!

I am trying to analyze this property to better understand the BRRRR strategy in my area. The property is currently under contract, but I am going through the numbers to see if it was a good investment (which it is!). A couple of things coming to this analysis:

1. Hard Money Lender will finance 65% of LTC (Purchase cost: $109k + Repairs: $50k = $103k and I would need to put out of pocket the rest).

2. Bank will refinance from 80 - 85% ARV but I used 75% ARV to be conservative.

3. What I really liked about this deal is that the appreciation on the area of the property. I used 8% but I don't know if that is conservative.

One thing I would need help with is understanding the closing cost. I added $400 in inspection fees, $100 in option fee and $1090 for earnest money deposit. What else would you add? Also is there some closing cost on the refinance part that I did not include. Any type of help would be very well received.

Thank you!

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*This link comes directly from our calculators, based on information input by the member who posted.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $350,000
Cash invested: $21,000

Currently House Hacking

How did you find this deal and how did you negotiate it?

Through the MLS. With my awesome realtor

How did you finance this deal?

FHA

Lessons learned? Challenges?

Know your numbers

While reading the book on managing Rental Properties it recommended to use postlets to advertise my property. When I google postlets the search engine redirects me to Zillow.com. Does anyone know if that tool is still around?

One of my tenants offered to sell me their oven for $150. Its in good conditions, a little dirty but I think it could get the job done. I dont know if I should buy it because I want to increase the price on that property and I feel that a new range would be better for rent increase, or keep the old one and save some money. What should I do?

 I will definitely ask. Thank you Aaron :)

I have been seriously considering starting trailer hack, where I live in a trailer while I leave my unit on Airbnb to generate more income. I own a fourplex in the south part of Fort Worth, Crowley. I live on one of the unit and have the other 3 rented. I was thinking on buying a trailer/RV and live on it on the side on the road (next to the property) while I put my unit on Airbnb. I have to do this because I have an FHA loan and I need to live there for about a year. I called the city zoning office and ask them if I could live on an RV around my property and they only responded with a "no." Without any explanation. I am starting to doubt this idea. What do ya'll think?