All Forum Posts by: Kindrell Hutchinson

@Ralph R. Overall, with the numbers I gave, would you say that this is a good investment? I plan to meet with the seller today.

@Arianne L. When I did my Rental report, My ROI was 22.14% ($830/mth) I thought the average is between 10%-15% Market Rental for the SFR ia between $1100-1200 in this area and they are located in C grade neighborhoods. Given the condition of these homes Cap Ex should be 4% and I work so I wouldn't require additional income as the property manager.

@Erik Nordgaard, @Tom Valichka is correct! A $20 app fee causes those who either live paycheck to paycheck or ones who wouldn't qualify to not even apply. I also say if the person who is applying to rent your property, go to their current residence unannounced and step into their homes. There you would see exactly how they will keep the place you rent to them.

This investor is about 55 years old. He told me he is selling 12-20 of the 300 properties he owns per year and taking on owner financed mortgages. He also gives his tenants the opportunity to buy the property they are renting if they have shown that they could make on time payments for a year. I have had the properties inspected. there are some cosmetic issues and a few roofing issues. to fix all of the issues would cost me about 3k to have these properties in great condition. To be more detailed, I am buying 2 single family homes that are renting at $1000 and $1025 a mth. the third property is a duplex and renting at $800 for each side. One single family home and one side of the duplex are HUD properties 100% paid. The appraisal reports should be in by tomorrow. I "think" this is a good deal after paying $1700 for mortgage, roughly $600 for taxes and insurance, I'd have a ROI of $1325 a mth. I am wondering if the appraisals come back lower than the proposed amount for the homes, should I take the hit depending on how low the values come back? Or should I negotiate a lower deal? I figured getting a owner to finance for 30 years is a rare deal giving the circumstances, seeing that this is a sellers market, and being approved by a bank for a deal like this is highly unlikely. Also, the seller wanted to bundle these mortgages together for one payment, what advice can you give in regards to that?

Hello,

I am a new investor. I am currently 2 weeks away from potentially closing on 3 properties using owner financing (I am the buyer). The terms of the contract is all 3 properties listed for $278K, with 45K down, 30 years fully amort., at a int rate of 7.905. no balloon payment. The seller wants to do a bundle mortgage for all 3 properties. All of the properties are rented and half are 100% HUD bringing in $3625 per month in rent. I am at the appraisal stage awaiting to get the reports back.

My question is, what should I do if the appraisal come back 5k, 10k, or 20k/greater lower than the proposed price? I feel like this is a very good deal but I'm not sure on how should I negotiate if the appraisals come back lower. The owner is a good guy but obviously does not play when it comes to business. I am a good communicator but, smart enough to walk away from a deal if it's not in my best interest. Hopefully you guys could give some advice. Thanks!

Hello! I'm from gainesville, fl

I'm just seeing this.  This is a sellers market. There isn't much to offer besides condos and single family homes. I too am constantly looking for 2-4 homes.

Yes I actually purchased it as HUD property. I own it outright. I;m hoping others will respond. I am also planning to lease out my property.

Thanks,

Hello BP World,

I am in the Central Florida area. I am currently thinking about purchasing my second property. I am deciding what are my best options. I purchased my first home (Condo) which I currently live in. I purchased my first home for $40k in 2013 and now it was officially appraised at $63K. I have about $15K in savings. I got approved for a HELOC of 80% of the home value but, its not enough for me to purchase what I am wishing to purchase (Multifamily 2-4 homes) to produce cash flow. What would you guys suggest? Here's what i thought about doing:

A. Taking out a Mortgage to purchase a multi-family 

B. Selling my current home for a cash out and using it to purchase a multi-family. 

C. Find a partner to invest (Least favorable option as it will minimize my cash flow)

Thanks,