All Forum Posts by: Josh Williams

Purchase price as a refi $135K, 3.73 APR Insurance and Taxes rolled into mortgage at $770. Appraises at $150K, rent at $1100. Home was built in 99, remodeled in 2010. It seems like the perfect first move on for turning our home into a rental, but I just dont know how to get the purest numbers. Ive read a lot of books, post, etc. but this seems to be my biggest area of struggle, which probably the worst place to have a hard time in this game.

 Thanks James. How would evaluate or crunch the numbers on this then? Just seems like Ill make about $320 a month extras. Which isn't bad for a first timer in my eyes. Thoughts?

It's the refi loan amount. But from what it is looking I dont need to even bother with a CAP on this single family home. I just wanted to crunch numbers to make sure I wasn't getting myself into a bad deal.

I was told in a previous post that CAP is irrelevant when evaluating a SFH, if I understood correctly.

But I still want to understand it.

About to cash-out on current residence

Refi at 135K
Insurance and taxes wrapped into mortgage $770 w/ 3.73% int
Rent $1100

Do get the CAP I would $1100 X 12 - 15% (vacancy & maintenance)=$11220

$11220/135K=8.31% CAP???

@Steve Vaughan So it would be 8.31%? Im really confused and don't yet have all the lingo and formulas on lock.

$1100(rent) X12 = $13200 -15%(maintenance 10% vacancy 5%)=$11220 NOI?

$11220/135K= 8.31% CAP?

Thanks in advance

The original plan, and hopefully still is to cash out refi current home. I can cash out 90%. Currently owe 101k and would refi at 135k with 3.73% APR. Leverage equity into another property down the line after getting tenants. Reuse VA for a primary residence.

The Mortgage+ Tax&Insurance=$770 monthly

Projected rent $1100 monthly

Monthly total for later maintenance and vacancy 15%

$1100-770-15%=$3366

$3366/135k= 2.49% CAP ?!?!?!?!

Home is currently worth $150k

Did I do this right? Is it even worth it?

Please help.

The original plan, and hopefully still is to cash out refi current home. I can cash out 90%. Currently owe 101k and would refi at 135k with 3.73% APR. Leverage equity into another property down the line after getting tenants. Reuse VA for a primary residence.

The Mortgage+ Tax&Insurance=$770 monthly

Projected rent $1100 monthly

Monthly total for later maintenance and vacancy 15%

$1100-770-15%=$3366

$3366/135k= 2.49% CAP ?!?!?!?!

Home is currently worth $150k

Did I do this right? Is it even worth it?

Please help.

The original plan, and hopefully still is to cash out refi current home. I can cash out 90%. Currently owe 101k and would refi at 135k with 3.73% APR. Leverage equity into another property down the line after getting tenants. Reuse VA for a primary residence.

The Mortgage+ Tax&Insurance=$770 monthly

Projected rent $1100 monthly

Monthly total for later maintenance and vacancy 15%

$1100-770-15%=$3366

$3366/135k= 2.49% CAP ?!?!?!?!

Home is currently worth $150k

Did I do this right? Is it even worth it?

Please help.

After doing a considerable amount of research these last couple of hours the third party offers for VA refi are typically start ups or have zero consumer reviews or really any third party validation.

Spent some time on the phone with my current lender to strategize within their loans and seems like we may have a perfect fit even though the cash out maybe less in the beginning there's nothing being hidden within the small print, which will save in the back end. 

So refi, rehab, purchase primary with VA, get tenants, save, save, save on top of the cash out, and go for a second investment property within 6 months after getting tenants in here.

Thank you for your input gentlemen!