All Forum Posts by: Michael Hoss

I am also looking into getting into rehabbing and investing in Oklahoma, I welcome meeting new investors in that market, I am in the Dallas are currently. What do you all think of Durant as an area for rental?

yes your #s are correct $640 to $700 cash flow on a 114k investment with 25k equity capture. 

The low cash flow if financed is really low so i don't know if i will go that route yet.

I paid $112500, closing is estimated $1500. No note.

in a year and a half when lease is up I can change that and do whatever i want, but for now so i can continue investing in other properties, should I refinance, get the cash out and with an 80-20 loan. There is % 20 equity from the price i paid to the market price.

  Refinance getting tenant to pay the loan or stay all cash in and wait it out in this situation?

Hi everyone, 

1st of all thank you for your input.

I just acquired a 1978 3-2-2 house in a hot area of DFW worth about 140-145K for $114K in Cash after closing.

Property comes with tenants paying $1080/month with 2 year lease ending June 2017

Tax/year is $2800

Insurance/year  $1000

Maintenance Expenses allocated about $1500/year

Rent is a bit low for this hot area, should be $1200, can I offer the renters $1000K and ask them to break the lease and get out so i can rehab for less than 5K and place the property on the market for 140K? Is this even possible and what do you think is a fair amount to offer?

Or keep the renters until lease is up in 2 years, no loan, keep the cash flow (cash investment stuck in property until lease is up?

Or refinance property on a 30 or 15 year? and wait till the lease is up and sell for market price?

Please evaluate this deal, I am used to buy low, fix and flip for 15k to 28K profit in 2 months, this is my 1st property with renters in place.

I apologize for not updating the thread, the deal did not go through, seller wouldn't accept my $500K offer after months of negotiations.

I met with the listing agent at the property, did another walk through and got introduced to the tenants. I also contacted my bank loan officer that deals with commercial loans and his team is doing a study on the property numbers to see if they can even finance it. I am leaning towards an all cash offer contract and took the idea of cashing-out on my primary residence out of my head, taking the advice of most of the posts.

The property has an all steal roof which the listing agent said is in great condition, the parking lot is in good shape, there is a newer apartment complex next door which i consider a big plus--there is also a dance club from the other side. Also a nicer center across the street

I did mention to the listing agent that my bank will probably not finance the property so it will have to be an all cash offer at $500K contingent upon all inspections done within 60 days- she said she will talk to her seller and get back with me.

At $500K cash an ok deal?

no contract signed yet, seller thinking about it

I am meeting the listing agent/manager today at the property and I will discuss it with her.

Thank You everyone for your inputs, I take every advise to heart to learn and ask questions-- If do get into this deal I will update this thread-

the management company is the listing agent as well and they are willing to stay and manage the property at the same rate of $1000 a month

The grocery store is called Grand City Grocery

I don't know if i can post the address of the property, or its against the rules or someone will actually jump on the deal if there is one (:

Its not the best of area, hence who the tenants are and I will def. get the inspections done, do you recommend anyone to work with in the DFW area?

These are hard earned money, actually all i have and i do have a job so if a month or 2 i had to supplement for expenses.

Jon brought up a good point, my exist strategy will be tough if the area doesn't improve, but it looks like it will from the condos they are building 2 blocks away.

right now it is rough though but the tenants cater to that crowd-