All Forum Posts by: Account Closed

Thanks, Theresa. This sounds extremely similar to RUBS, in which I have contemplated, though it's hard to gauge usage between upper and lower, as even if the occupancy and square footage are equal or not, one family could use an increased amount of utilities depending on how conservative they are... 

However, I wholeheartedly see what you're saying, though I tried to steer away from RUBS for the simple fact of truly not knowing how much is, in fact, being used-- too much calculation when I don't believe it would matter either way.   

 Thanks for this, Nathan. They're good tenants with little to no complaints. Recently, I have covered A/C usage during this great heat wave in the southeast, of which they said they would watch usage... Not sure what to expect as we will see when I get the bill. 

This is a great take.  

 Great response. As simple as this is, I hadn't thought about this. 

Thanks.

Hi all. Last year I purchased my first rental (BRRRR) for $115,000, and put around $30,000 into repairs. It appraised for last month at $220,000 in which I was able to do a cash-out refi and pull almost $30k back out.

With all of this said, I was a complete amatuer at the time in which it is now costing me a large sum of money monthly. I include all utilities in the rent in which I gross $2,440 a month. I cash flow anywhere between $600-$800 between both doors. 

As time goes on, I feel as if I am going to undergo an ample amount of stress and headache dealing with paying for the utilities as tenant remorse for heavy usage is slim to none.

I have contemplated on selling the property to an investor who is apt to dealing with single metered MFH, but that's still in speculation, given that rates are much higher than months ago. 

What would you do in this situation?

Wanted to revive this thread... I am currently in the process of a cash-out refi with them. I used a mortgage broker this time around to obtain the best LTV cash out along with the 10 I/O, 40 year fixed that is offered in which she ended up choosing Sprout to close the loan. Anyone else experience any negatives or positives with them?

Hi all.

Long story short, I was approved to purchase an out of state beach rental as my first rental around with a conventional loan in July of 2020. Knowing the volatility of the vacation rental market, and beach closures during the COVID uncertainties, I opted out of pursuing that venture. In the meantime, I began wholesaling in the afternoons and on the weekends in order to help develop more capital as well as learn more about my current market.

Fast forward to present day, and the rate of which our local market is appreciating is absolutely unreal... I was able to save up enough to quit my W2 recently in order to focus on wholesaling, in hopes to develop a larger amount of capital in a shorter amount of time. However, now that I lack a W2, lenders are extremely skeptical of lending. I have a few wonderful mentors, but almost all of them recommend me finding a turnkey rental in order to quickly obtain tenants in order to prevent holding costs, rehab costs, etc... They also advise against a PML of which suggest traditional financing instead. I weigh their opinions very heavily, though I feel like I’m stuck.

With all of this said, my thoughts are up in the air in regard to what my next move should be. Do I focus on wholesaling to build up capital in this extremely hot market? Do I obtain a W2 in order to secure a turnkey rental?

I would absolutely hate to buy at the peak of the market and a few years later the market drastically correct...

Good morning, everyone.

As stated in the title, I’m considering purchasing a turnkey beachfront studio within a condominium as one of my first rentals, and wanted to hear everyone’s opinions on the numbers.

I was pre-approved for $170k with 10% down with a 30 year fixed at 3.125%.

-Purchase price (with seller paying closing costs): 155k

-Annual gross revenue: 21k

-HOA: $4,080/annually

-Maintenance: 10%

-Management: 20%

-Utilities: 2%

-Insurance: $1000 annually

-Taxes: $800 annually

After all numbers were ran through different calculators, my Cash on Cash was only 3-4%, NOI being around $7,600, and total net profit $3,400 annually.

To me, this number sounds extremely, extremely low.

However, with inventory being so low in my local market, I’m willing to jump on something with much less return, rather than staying in the stage of analysis paralysis.

If a certain figure doesn’t make sense, I’m more than happy to go into detail.

Hi all! 

I was reviewing various title companies in the area and was looking to find out if there are any investor-friendly title companies in particular that assigns AND double closes... 

I used the search bar but was unable to find any information in regards to what I'm searching for.

Thanks for any input.  :-)

@Ryan Steiner - Ryan, thanks for reaching out.

My first local REI meetup was May of 2018 at the ripe age of 22... The meeting contained a surplus of bird dogs and developers, so I didn't learn much and felt as if the time I invested on my own- into myself, was much more time efficient. Looking back I may have had the wrong mindset, but ultimately what's done is done and I have done much due diligence since then, nonetheless. (See Naval Ravikant's philosophy on unnecessary meetings as a whole, not just REI related.)

I find that there are people who are in fact willing to help on *your* personal REI journey, but only in non-competing markets. For example, I've reached out to a few individuals in my local market who are less apt due to whatever constraints may lie there... Not sure if it's fear of competition, inventory, not enough worms for the birds- I have zero clue.

I’m not usually one to voice much, so when I openly come on to a forum and express my struggles; it’s saying a lot.

It's hard to put onto paper what exactly is stopping me, and I'm sure I'll think of much, much more after I initially post this- but the phrase, "analysis paralysis" sums up my entirety to a T- mixed with insufficient step-by-step knowledge needed to complete the process. I know this term may be a bit overused in the world of REI, but it holds to my mechanics... I'm also a long-time BP forum lurker, BP audio-book listener, frequent investment podcast listener, and have been graciously exposed to the REI realm through close friends- STRs, flips, wholesaling/wholetailing, etc.

The issues I'm currently facing are locating local MLS inventory (SF, MF) that would make a "worthwhile" investment, that would provide a decent ROI... Another downfall is that I file as a 1099 laborer with an insufficient pay scale that isn't considered "enough" for mortgage approval. (Working on the W2 aspect; will be placed into a much more scalable role in 6-12 mos.)

I've attempted to venture into wholesaling due to lower barriers to entry, but I'm also a fan of STRs. Again, without PM and/or HM, I cannot play the buy and hold game.

I guess I'm just confused at which of the REI facets to choose from to start on my endeavor, and it's very frustrating considering I have the knowledge, just not "specific" knowledge.

I'm digging every day to get out.