All Forum Posts by: Lee Huffman

Welcome @Christiane Russell. Good luck as you start on your flipping business. If you use FHA 203(k) loans, you can finance the purchase and rehab. With the tax laws allowing you to exclude $250k in capital gains on your residence, you can buy properties on the cheap, live in them and fix them up, and sell every 2 years (you must live in the property for 2 out of 5 years) for a profit with no income taxes on the gain.

Similarly, you can look to do the same with duplex, triplex, and fourplex properties.  You can consider buying a multi-family property like this, then move on to the next one once you've finished the rehab and have all the other tenants in place.

Best wishes.

Good luck @Benita Jones.  What happened with your previous rentals?  How has your investor profile changed since the last time?  Are the 3 units you own now part of your previous portfolio, or have you purchased these recently?

It's nice to meet another investor.

Hello @Josephine Pride, welcome to BP.  My business partner and I invest in the Fayetteville area as well.  We buy distressed properties for flips and rentals.  We've purchased 5 so far this year.  It is a good market if you can buy at the right price.

Good luck!

Welcome @Chad Gibson.  I've been investing in the Fayetteville area since 2006.  Not a whole lot of appreciation, so you need to focus on making your money on the buy side vs. sell side.  There is still plenty of opportunity, but there are more and more investors coming in as @Brett Campbell mentioned, so it can take longer to find deals that meet your investment criteria.

Good luck!

Hello @Garlinda Price, welcome to BP.  My partner and I also invest in the Fayetteville area.  It would be great to connect and see some of the deals that you are wholesaling.  What type of deals are you primarily involved in?  Right now we are focusing on SFRs of 3+ beds and 2+ baths to either flip or hold as rentals.  Eventually we will be trading up to multi-family as we build more capital to work with.

Good luck!

Hey Steve, we bought this property in June for (round numbers) $57k and budgeted $18k for closing costs, termite inspection, rehab, and cleaning fee.  Once we had tenant moved in, then we started the refi process.  With the way refis are going, we did a 45 day lock.

The appraisal came in at $109k vs. expected ARV of $115k... close enough for what we need to do since our program allows lesser of 70% of LTV or whatever is on HUD-1.

Refi loan amount was $74k plus $1k in cash at closing since taxes are due.  Rate is 4.875% with credit of $2k to offset origination charges and fees.  Cash back to us is $73k. Origination charges, fees, and impounds were a total of $3k.  Basically, the $1k in cash and net $1k in charges (total of $2k) were the property taxes due, a couple months of impounds, and a few $100s of fees.

And we'll collect 2 1/2 months of rent before the first payment is due on October 1st.

So, we now own a property that has $35k in equity and is cash flowing almost $300 a month (before vacancy and repairs) for essentially $0 out of pocket.

@Alexander Felice thanks for inviting me to share our story.

Yes @Alexander Felice, that's the way to go!  Just received docs today to sign to finish another refinance of a deal we bought all-cash in June, did rehab, tenant moved in almost immediately, then started refi process.  We're getting almost all of our cash out with a 30-year fixed loan at 4.875% (higher rate to reduce out of pocket costs of refinance).  Out of pocked costs primarily consist of impounds for taxes and insurance.

Good luck!

Welcome @Brett Campbell.  I've been investing in Fayetteville since 2006.  As @Alexander Felice said, appreciation is not the game here.  You can find some good values and force some equity if you buy something distressed, fix it up, then appraise it for higher (purchase + 2-3x rehab is a decent estimate).

Since you're in the military, you know that people move often, so that is a negative against this market since they can terminate leases easily with move orders.  However, a positive is that many of the Army and Air Force personnel want to live off base, so there is good demand for rentals.  And, if they don't pay or if they damage the property, there is good recourse going through the military channels.

Good luck!

We would be interested in taking a look at the properties.  Can you PM me the addresses?

Nice to meet you @Zavion Sherman.  What type of real estate investing are you looking to do?  Our company is buying both for flips and rentals.  If you're looking to wholesale as a way to get started, please send deals our way.  It would be great to do some business together.

Lee