All Forum Posts by: Lee Cruz

NERVE

Im actually more worried about purchasing my first rental than i was when i bought my own home. Its the unknown, that scares me. Its been 2 months since i first started posting here, analyzing deals and viewing properties for myself. Im viewing 2 properties this week, and hopefully one of them is my first one. I dont know if 2 months is a long time, but right now im more analyzer than investor. Ill only call myself and investor if i get my refinance out in a year from the BRRRR strategy. But yes for me, its NERVE.

Hello Bp. I switched from duplexes to single family for the better selection, and better area for my first property. I was hoping someone can take a glance at my numbers. @Arpan Patel @Jeff Filali @Ranga Ramanathan 

3 bedroom, 1 bath 900 square feet

Asking Price - 110k  

Offering price - 105k (the most ill pay for the property, will offer lower)

ARV - 170k (180k seems normal for the area)

Repairs - 20k

Cash on cash - 49%

Monthly cashflow - $212

ACQUISITION

Downpayment - 21k

Hardmoney lender - 12% at 2 points

Loan amount 84k

Total money in 46k

REFINANCE

loan - 128k

closing costs - 3k

4% over 25 years,

rent: $1250

tenants pay all utilities. I have not factored in property management

Total cash invested - $5000

I think i factored in all the numbers from the BRRRR calculator. If theres anything missing please let me know. Thanks!

If i were to buy a single family home with tenants in place how long do you give them notice to leave? I'd like to get the rehab done quickly (within 2 months) and get tenants in for the seasoning period of 12 months before i get the refinancing. Hopefully up the rent a bit higher also. What do you guys usually do?

@Jeff Filali

Thanks for the reply Jeff. Im impressed with you  purchasing 15 properties your first year. Was all that working capital of your own or did you have hard money lenders? Did you go one at a time and is that how you purchased your 15? 

@Ranga Ramanathan

Originally posted by @Ranga Ramanathan:

I typically go with MLS and try to find a deal that works so I don't buy 40% below market value.

--

hi Ranga, what did you mean by this? Im going with the MLS and the deals i find are over priced and im thinking of offering substantially low. Example i seen a property for 140k, but thinking of offering 100k. Is that what you meant?

I understand the need to joint venture. I understand the value in that. That being said id prefer to go solo. Something about bringing someone i dont really know scares me a bit. Difference in work ethic, personality differences, time differences etc. Even losing their money scares me even more.

Ive also watched some podcasts on here where guys grab 20+ properties within a couple years. If you're going solo, how do you scale quickly just using the bread and butter approach of buying and holding? Is BRRRR the biggest strategy? Flipping here and there? Ive probably answered my own question, but just wanted some varying opinions. Thanks.

Hi there. Ive been reading on here that you shouldnt be naming your LLC like xyz properties or xyz investments, because lenders wouldnt be apt to invest in you, but what is the specific reason for that?

Also ive never seen a field where you can name it so many different ways. For example if your a plumbing company you call yourself xyz plumbing. But for investors i see 

xyz holdings

xyz realty - isnt this just for real estate agents?

xyz properties

xyz investments

xyz home solutions

xyz group etc

Whats in a name?

Hi Bp

Im still in the planning phase of my first property. I was looking to do the painting, flooring and cabinets myself. Then let the contractors do electrical, plumbing etc. Is this a bad business decision? Is this worth my time if im trying to save  money? Or should i just let the pros handle it? After my 9-5 i was planning to go to the property after work. Which route would you go for a first rental?

Question about hard money lenders for my first BRRRR. If the property has an asking price of 140k and a ARV of 180k. And if i purchase it for 100k. Does the lender do a perecentage of the purchase price for 100k? So if i pay down the 20%=20k and they loan 80k?

Im sure im over complicating this, can someone clarify this for me? Thanks?

I only ask this because this is the only type of rehab that ive done before on my own house. Im still looking at my first purchase im having trouble with estimating rehab costs. Besides putting in a new toilet. I dont have experience with plumbing and electrical which it needs.

But lets just say a house with an ARV of 180-190k. Purchase of about 90 - 100k. 3 bedroom house. How much would i have saved if i done it myself vs a contractor on estimate? How much does flooring, paint and cabinets usually add to the value of a property? Im thinking of setting aside $35k for rehabbing costs.