All Forum Posts by: Justin Seng

Why would a seller request to use their title company? What harm could come of that?

One question on the BRRRR method. @David Greene said he could only do 2 deals a year because he would have to save the 20% down payment. He said with the BRRRR strategy he could now do 2 deals a month. It’s my understanding a house needs to season for at least 6 months before you can cash out. So wouldn’t he still only be able to do 2 a year unless of course he was using hard or private money.

@Account Closed said it’s up to you and what your goals are. I want enough cash flow to replace my income eventually but at this point I need $ to keep moving and get more properties.  I went with taking the extra 10K and having a lower cash flow.  

@Anthony Wick @Matt Moylan Thanks for the input! I decided to go with the escrow...

@Stephanie Medellin Gotya thanks! 

@Mark Whittlesey That’s kinda what I was thinking Mark. And it seems like they always say there wasn’t enough in escrow and you owe money. 

@Stephanie Medellin Thanks! Do lenders prefer to have the escrow account? Would they back out if I decided to not set up the account? 

@Aaron K. Thanks Aaron kinda figured it was a preference thing. 

Is it better to roll your taxes and insurance into your cash out refi loan or just pay them separately? 

@Tim Haenn Sure.  I feel I did get pretty lucky on my deal. 3 bed 1 bath Row house in Glenolden (Darby Township) was originally up for $110K. Came down to $80K. I offered $60K and they took it as long as inspection was for info only. At first I had reservations as to why a seasoned investor didn’t pick this up. I put $15K into it. (Did a lot of work myself) Probably could have gotten away with $10-12K but I wanted to make it nicer to attract a better tenant and make sure the after repair value was high enough that I could get my money back. 

Purchase $60K

Rehab $15K

ARV $105K

Rent $1300

Expected PITI (Principal Interest Taxes Insurance) after cash out: $875

CapEx/Vacancy/Maintenance: $160

Cash Flow: $265

My CapEx/Vacancy/Maint may be a little low but with all the work I did I'm not expecting much maintenance and the CapEx items are all in good shape and should have years left.

 I’m just getting into this so I’m no expert but anymore questions let me know...