All Forum Posts by: Kevin Hunter

@Shiloh Lundahl, what is option C, because I don't like either of those.  Too much leverage is a lot of risk, but the cash reserves protects against that (only to a certain degree).  Do I have the will power to leave that 42k in reserves?  Yes I do, but that is why I would never need 100% leverage to have appropriate reserves.  80% leverage is better in my opinion, but only 2K in reserves is a recipe for disaster.  One roof, one driveway, one HVAC and its gone.... In this particular scenario in which I HAVE to choose one, leverage with the reserves is it.  However, for the record, I choose option C, 65% leverage with 12K of reserves.....

@Dean OMalley, awesome deal.  Super creative and now a money maker.  Well done!!!

@Amber McCarthy, congrats on a great deal.  Well done!

@Account Closed, welcome to BP.  You have come to the right place.  Tons of information here to learn and tons of awesome people to learn from.  Good luck!

@Jacob Girard, welcome to BP.  Tons of great people here to learn from and great resources.  I am active duty and invest all over the country.  I love military areas specifically because of the tenant base quality and the predictability.  I like the J-ville area and have been tracking for a while.  I don't invest there personally, but I invest in San Diego, northern Virginia, Watertown NY outside Fort Drum, Myrtle Beach, and a couple of other non-military areas.

Happy to help in any way I can.  Feel free to reach out.  S/F.

@Jessica Heyse, congrats on figuring out something that takes a lot of people a lot longer to figure out......  Good luck moving forward!!

@Lance Wolfsmith, congrats on the deal.  Sounds like a bit of creativity could make you a bunch of money long term.  I echo what @David Pere said.  Get a list of ten lenders (which you can find on BP or from local contacts), and call them all.  Be extremely up front with what you are looking to do, and find the one that makes the most sense.  

Let us know how it all works out!

@William Huston, what are your long term goals? Additionally, it would probably help folks to make a recommendation if you provided some numbers. I understand you bought it for 49K VA, so my assumption is you owe about 35K on the loan. All that said, I also don't know what the interest rate is. For this post and bc you got the loan in 2009, I guessed at 5%. That tells me that your mortgage, principal interest and taxes is now (after the tax hike) about 270 per month. Add in 325 for HOA, 50 for insurance, 100 for PM, 50-100 for repairs, CAPEX are nil because the condo is brand new,(but you should plan for them anyway) and one month per year of vacancy, it looks like you will cash flow $400-ish per month on the property. Now you just have to make sure you can take the 180K and cash flow more than that. If you can, then sell and move on. If you can't, then keep it and enjoy the cash flow. With 150K in the bank for your next investment, do you need the 180K. Again, I don't know any of these answers, but you can answer them. Good luck and let us know what you decide!

@Stephanie S., do you have any investments already?  I would say start with one and work the process.  Don't overdo it as that is the way a lot of people lose a lot of money.  Once you are comfortable with the first, then think about scaling.

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