All Forum Posts by: Kyle Scofield

I have never done this before and just felt like it wasn't making sense to me. 

Hypothetically,

• Purchase: $30,000
• Rehab: $20,000
• ARV: $100,000

Cash need @ 20% down on $30,000 and Rehab costs = $26,000

Rent: $800

Monthly expenses (we'll just use 50% rule): $400

PMI ($24,000 @ 3.875% over 30 years): $113

Cash Flow: $287/month 

C on C ROI: 13.2%

Refinanced @ 70% of ARV = $70,000

New PMI ($70,000 @ 3.875% over 30 years): $329

Cash flow: $71/month

C on C ROI 3.8%

Am I missing something here? It seems after you refinance, that you could run a serious risk of getting a negative cash flow property. Although you get to pull your money back out of the property, is there really a bonus for refinancing? 

Yes, and only in this town. I'm still only investing in my back yard for now..

Thanks for looking!

Hello BP,

Just had a question on how to structure partnerships where you put in no money. As far as who's name goes on the deed, contracts you need, etc.

If there's a blog or previous article on this topic, could someone please send me the link??

Thank you!!!

@Johnathan Alesso It is a SFR so yes, all utilities will be paid by tenants. With $600 per month of rent, the cash flow is about $60/month or $720/year (using my numbers)... After taxes, PMI, maintence, capex, etc. This is with 100% financing though.. There may be room for a possible 3rd bedroom which could bring rent upwards of $800-$850 so that would greatly increase cash flow.

50% rule gives cash flow of $145/month or $1,740 per year so my numbers are a bit conservative. This is still at the $600 rent number.

Also, I put "2" for the lot size because the property sits on 2 lots.. not entirely sure of square footage.

Young investor looking for 2nd deal!!

I am a college student that just secured my first college house hack deal about a month ago. Another amazing deal in my town popped up that I wanted to offer to BiggerPockets to see if there was a private investor or partner that would want to go in on this with me. 

Some details: 

*Great location - across the street from a park, to the south of a college and to the north of a hospital

*Sits on two lots - large detached garage - decent sized shed also - small crick river runs near back yard

*2 bed, 1 bath (possible 3rd bedroom)

*House could use a small rehab 5k upgrade would do the trick (not required)

*Brand new Furnace - New water heater - New Roof/Shingles

*Comes with washer, dryer & Fridge 

Cash needed @ 20% with $1,500 in closing costs = $8,100

I've prepared a report for this possible rental using the BiggerPockets calculator for all to read.

https://www.biggerpockets.com/buy_and_hold_results...

CASH ON CASH RETURN = 12.03%

C ON C ROI WITH 50% RULE = 26.05% !!

This is just using the numbers of $600 per month for rents too. Rents for a 3 bedroom would would drastically improve these returns (roughly $800/month depending on quality of interior)!! Good returns with LOW risk! Win-win-win.

I encourage a vetting process so if you're not willing to get to know each other a little bit then this probably won't work out. 

Any questions about myself or the deal, PLEASE message on the site! Look forward to hearing back from you guys!

Sincerely,

Kyle Scofield

Hello all,

My name is Kyle Scofield and I am finance/marketing major at Dakota State in Madison, SD. I recently secured my first deal through a lease option and am housing hacking to live for free with college roommates (https://www.biggerpockets.com/forums/223/topics/30...).

I have received an AWESOME deal from a wholesaler in my area today and was looking for a partner to supply some cash for this excellent cash-flowing deal! Deal is very under-valued. Instant equity.

My role in this deal would to do all the leg work. To be the boots on the ground and take care of everything that would need to be done here in Madison.

A few details about the house:

1) 1200 sq ft

2) Two bed, one bath (possible room for 3rd bedroom)

3) Great location, located near the college, across the street from a park

4) Sits on two lots with large detached garage and decent sized shed as well

5) According to wholesaler there is minimal rehab ($5k but I have not seen inside property yet)

6) BRAND NEW furnace, water heater, roof!!!!

7) Comes with washer, dryer & Fridge

The purchase price: $33k

Cash needed @ 20% with $1,500 in closing costs = $8,100

I've prepared a report for this possible rental using the BiggerPockets calculator for all to read.

https://www.biggerpockets.com/buy_and_hold_results...

CASH ON CASH RETURN = 12.03%

C ON C ROI WITH 50% RULE = 26.05% !!

This is just using the numbers of $600 per month for rents too. Rents for a 3 bedroom would would drastically improve these returns (roughly $800/month depending on quality of interior)!! Good returns with LOW risk! AND you don't have to deal with any of the headaches that comes with being a landlord. Win-win-win.

Being a college student, I don't have the necessary capital to jump on this deal right away especially since I just bought my first deal. Oh well, my loss is your gain. Let's win together.

I would love to get to get together with anyone interested to sit down over coffee or something to get to know each other better. I want FULL DISCLOSURE for both parties, would be awesome to get to know one another better. I'm just a younger person looking to work my way into the this amazing world of Real Estate Investing.

Any questions about myself or the deal, PLEASE message on the site! Look forward to hearing back from you guys!

Sincerely,

Kyle Scofield 

@Matt Geerts I chose the lease option right now because with me being a full-time student, I don't have a very high annual income (less than $20k) so using traditional financing would be nearly impossible for me because my DTI doesn't meet any bank requirements!

@Brandon Turner Thanks for the mention Brandon! (you're basically my idol haha) I've learned almost everything from you guys!! Keeping doing the things you guys do! 

Thank you @Steve Bracero !! It's taken a lot of time to get to this point and feels good to finally pay off. Now it's just time to learn from the school of hard knocks :) haha

@Brian Tisler I think you would be fine doing this. As long as you are okay with the rent numbers and everything else. Maybe talk to them about a 12-month lease if they are up to it? Increase monthly rent by a nominal amount? At the very least, I would add a contingency to their contract that requires them to give a one month notice. You are the landlord now, your rules. All depends on your risk tolerance

Have you ran the numbers yet? I'm not quite sure what kind of financing you'll be doing so if I could help with that, I could give you a rough idea about your return on investment! @Steve S.