All Forum Posts by: Steve LeBlanc

@Shiloh Lundahl I didn’t notice what the rent collected amount was?

I truly find your numbers very difficult to believe, but I’m certainly not calling you a liar.

In Phoenix, there is no place in the valley that is valued around $200k would even be able to rent for the mortgage you have listed there.

For example, I own 3 homes in Surprise, which is a “cheaper” area than any of the more attractive areas like Scottsdale, which doesn’t even have homes valued that low. Those 3 homes are all valued close to $300k and rent in the $1500+ range

So finding a $200 ARV home and renting it, anywhere in the Phoenix valley.... I've not seen it.

@Shiloh Lundahl would love to see the numbers if you’re willing to share like I did above.

@Shiloh Lundahl at this very moment...Alabama.

@Edward Derosa suburbs of Alabama. Keep in mind, these are B-/C+ properties. Rent is $500 per door

@Matt M. Congrats and appreciate the input. Primary is a totally different scenario.

@Ron Szmik with who and what state?

Great question, and my assessment is based on my strategy. I invest for cash flow. There is no cash flow in Phoenix. There is plenty of value adds or decent flips (neither are my core strategy).  I imagine you may respond in disagreement, I’d ask that you share your numbers just so we can take a look.

And when I say cash flow, I mean something like the following which I pick up in the eastern part of the country fairly frequently:

$130k purchase price

Monthly rent collected: $2000

Insurance: $1200

Taxes: $1500

PM: 8%
mx/vac: 10%
Financed 30 years at 5.5% ish with 70 to 80% LTV (timing dependent). We're talking over 20% cash on cash.

It just does not exist in today’s Phoenix market where Californians are driving costs up, up and up. 

For some data points:

11CapitalFinance

30 year fixed loan at 70% LTV with a 3 year pre-payment penalty and is based on a 800 FICO score.

6.75% APR
$1918: 2 lender points

$1720: lender underwriting / doc fee

$1918: 2 point broker fee

$500 appraisal 

Total cost: $6056 + pre paids

Prime Lending

30 year, 70% LTV

5.625% APR (was told today that it's come down this week from this)

Lender: $1350
Appraisal: $475

Title: $1300

Total cost: $3125 + pre paids

I forgot about them. I used them years ago for a vehicle loan and were great to work with. Thanks for the suggestion.

Great advice but unfortunately I invest across the country and building those local relationships is rarely ever an option. Tried calling the local folks many times and they often times have crude requirements such as living within a certain number of miles to the property in question.