All Forum Posts by: Kevin Sack

Welcome Stephen. As you become more immersed in the community, you will learn that there is opportunity everywhere. @Brandon Turner always breaks down the wall of there not being deals in your area...you have to find or make them! Consider a more rundown multifamily that will take some sweat equity, and take those profits to your next investment. In the 7 months I've been pursuing REI, I've learned that you have to think outside the box and there are multiple ways to come to a solution given a scenario. Wishing you the best, and if you want to bounce ideas off me, please don't hesitate!

Start listening to the podcasts while you are at the gym, in the car, or otherwise doing things that waste your brain time. You will gain a wealth of knowledge from them. Welcome aboard and I wish you the best!

@Allan Smith thanks for your thoughts. It's a large rental market and has a strong investors group. I'd put it solidly as a C neighborhood. The borrowed money is account for in the other expenses- 100 for landscaping and 180 for the 10% borrower payment (30yrs at 6%). So in actuality, the CoC return would be higher because the numbers I ran in the calculator were for 20% to get an accurate cash flow number.

View report

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

I'm looking at ways to make this deal happen, and the numbers seem good to me but want other opinions. Two triplexes being sold together. They are asking $334, I ran the numbers at $300k. I do not have quite enough cash to make a full 20% down payment, but am exploring borrowing 10% and putting up 10% of my own to avoid PMI. The 10% is accounted for in other expenditures, along with landscaping. All the numbers are accurate except the CoC return. I run 10% vacancy for padding, 8% Capex and repairs, and 10% management. Thoughts?

Movement Mortgage in VA has informed me that they do 80% LTV and no seasoning. I cannot speak to the W2 income, but if you do reach out, let Jake know that I sent you!

Thank you all for your feedback. I really won't know the true value until my realtor comes back with pictures/videos from the viewing. But comps in the area that have been fixed up are going for about 135k. @Neel Jain the market is tough and for a new investor like myself, I'm not necessarily holding out for the home run deal where I can pull all my cash out with the 70% rule. I'm perfectly fine at this point with 20-25% CoC returns since that money isn't making anywhere close to that anywhere else.

Long Distance REI brick duplex built 1942. One side occupied @700/mo, one vacant. Seller listed at 90k, seller countered back with 80k after an initial offer of 72k. Comps in the area are anywhere from 45k-135k depending on interior condition. I have no pictures of interior or inspection yet (REA is setting up a viewing) so I'm hesitant to accept the 80k offer. I'm estimating about 10k in rehab for new flooring, paint, etc and adding W/D to the rent. I ran the numbers at 700/mo but should be able to get 800 with W/D and rehabbed interior. BRRRR might be a little more difficult on this one since one unit is occupied and I don't particularly want to get rid of an established tenant. Another option I have is private money with no fees at 6% with zero down until the refi is complete. Any advice is welcome!

@Renard Miller thanks for the response! Seems like people are holding onto their appraisal values as people are eventually paying that price, they might just sit on the market a little longer. I'm determined to find that motivated seller that makes the numbers work!

@Anthony Wick you are correct, it does seem low so I suspect people are making money from buying when the market was lower and are trying to capitalize on the higher prices now. Depending on the source, I am seeing 7-9.5% vacancy in the area so I'm using 10% to be conservative.

@Ernest Grindle can you be more specific with what factors you are referring to? My cash flow number is after PITI, maintenance reserves, 10% vacancy, 10% PM, and landscaping. This is my first deal so I'm making offers on properties that do not require major rehab...maybe paint and fixture updates at most.