All Forum Posts by: Brandon Hughes

I found a potential deal but was wondering the process in splitting one lot into two lots.

Right now the property is 2 houses on .9 acres 200k. Each house has street acess.

If i can split them up i could sell each for 150k.

Does anyone have experiance with costs/process associated with this?

Thank you in advance!

Brandon

I found a property and wanted to contact the owner. The problem is in CA the county tax website lists all owners addresses' as

"Protected per CA. Govt. Code Sect. 6254.21"

Does anyone have any experience obtaining ad contacting owner information in California? If so what are the steps you take? Where should I look? Is there a way to get this information?

Any help is greatly appreciated!

welcome dirt pimp! there are a lot of multi unit properties in mentone, yucaipa, and calimesa. they rarely go for sale tho. and when you have the property ready we can get julias work to find tenants for you then you manage it after.

;)

I would like everyone to help me analyze this possible deal. I'm about ready to purchase another multi-unit property. My plan was to buy it as a primary (live in one and rent the other for a period of time). A local property manager and agent approached me with a client he has which may be interested in selling his property. The property is it is not currently for sale but the owner completely renovated the property and he wants to get 230k for the property. It is probably worth about 220k. He purchased it for much less so his motivation is to cash out. Let me get to the numbers...

Going to do the deal with a partner splitting everything

Currently Rented at 2200 Gross Monthly Rents

Down Payment 44k

22k of down payment be on my heloc @100/mo interest only payments (ill be paying more with the extra cashflow) (partner will do other 22k cash)

Loan amount 176k @ Approx 960/mo 30yr fixed

Insurance 80/mo

Prop Mgmt 200/mo

Taxes 140/mo

Repair 100/mo ?

Water/Trash 230/mo

Approx 490/mo Cashflow - I would be splitting this with my partner

245/each (my portion would be used to payoff my heloc $100 interest only payments - I would be paying off any principle with extra cashflow)

Please help me analyze this deal. Any thoughts would be appreciated?

Also,I do want to note the area is a growing area and it has gotten larger over the past couple years. We could possibly sell this later if prices continue to rise.

I started educating myself on RE investing about two years ago. I started working in a bank and I started to notice how common characteristics wealthy people have when it comes to managing their money. Real estate is one common trait they all seem to have. This is what got me interested in RE investing.

I closed on my first deal last year. It took me nearly a year to find my first property, multi-unit property, under 200k, and one that would go FHA. (I don't make much and I live in the Inland Empire in California) Its not easy to find properties in that price range let alone multi-units in that price range where I live.

Now I partly attribute some of my success so far on being in the right place at the right time.

I made several offers before actually having one accepted. The one that was accepted was sight unseen but once I did a walk-thru of the property I was horrified! One unit was a clean 1 bed 1 bath with long term tenants 3 years and the other, which i intended on moving into was a 3 bed 2 bath thrashed! It was a drug house. The children's bedrooms had locks on the outside of the doors!!! The rooms smelled horrible of urine because they would pee in their rooms from being locked in the entire time.

I made it clear that I would not close if they were still living in the property! Surprise surprise they could not get approved for anywhere else so the seller rented a uhaul for them to move all their stuff into. They eventually went to live with family.

All said and done once the deal closed I bought it for 139k the appraisal immediately came back at 150k. I cant believe it passed the fha appraisal either.

FHA loan was at 3.5%! I'll never get a better rate than that.

So far I have put approx 10k into it! Since I have been living in it I have been doing the work myself and I have put a ton of work into it.

I just went to the bank to apply for a HELOC and they valued it around 208k. I'm ready to move onto my next property. (since I'm nearing the end of the work here)

This is how it will look after I move and rent it...

3.5% FHA Loan @ 138k left

In the process of 30k HELOC @ 5% - Want to have it available if needed for future investments.

Cash flowing $480/mo (including management fee's - self managed) This will increase to $621 month once PMI is dropped (in the process of doing that now).

I Plan on re-investing all the net proceeds from RE back into it so I can continue to grow my portfolio.

Let me know what you all think. I'll post some before and after photos.

Also I really wanted to thank everyone on bigger pockets! I don't post much but I read all the information bigger pockets can offer me. I don't know if I would have been as motivated unless I heard all the success stories and positive attitudes that everyone on BP has.

Thanks again!

I started educating myself on RE investing about two years ago. I started working in a bank and I started to notice how common characteristics wealthy people have when it comes to managing their money. Real estate is one common trait they all seem to have. This is what got me interested in RE investing.

I closed on my first deal last year. It took me nearly a year to find my first property, multi-unit property, under 200k, and one that would go FHA. (I don't make much and I live in the Inland Empire in California) Its not easy to find properties in that price range let alone multi-units in that price range where I live.

Now I partly attribute some of my success so far on being in the right place at the right time.

I made several offers before actually having one accepted. The one that was accepted was sight unseen but once I did a walk-thru of the property I was horrified! One unit was a clean 1 bed 1 bath with long term tenants 3 years and the other, which i intended on moving into was a 3 bed 2 bath thrashed! It was a drug house. The children's bedrooms had locks on the outside of the doors!!! The rooms smelled horrible of urine because they would pee in their rooms from being locked in the entire time.

I made it clear that I would not close if they were still living in the property! Surprise surprise they could not get approved for anywhere else so the seller rented a uhaul for them to move all their stuff into. They eventually went to live with family.

All said and done once the deal closed I bought it for 139k the appraisal immediately came back at 150k. I cant believe it passed the fha appraisal either.

FHA loan was at 3.5%! I'll never get a better rate than that.

So far I have put approx 10k into it! Since I have been living in it I have been doing the work myself and I have put a ton of work into it.

I just went to the bank to apply for a HELOC and they valued it around 208k. I'm ready to move onto my next property. (since I'm nearing the end of the work here)

This is how it will look after I move and rent it...

3.5% FHA Loan @ 138k left

In the process of 30k HELOC @ 5% - Want to have it available if needed for future investments.

Cash flowing $480/mo (including management fee's - self managed) This will increase to $621 month once PMI is dropped (in the process of doing that now).

I Plan on re-investing all the net proceeds from RE back into it so I can continue to grow my portfolio.

Let me know what you all think. I'll post some before and after photos.

Also I really wanted to thank everyone on bigger pockets! I don't post much but I read all the information bigger pockets can offer me. I don't know if I would have been as motivated unless I heard all the success stories and positive attitudes that everyone on BP has.

Thanks again!

If you are applying for lending at a big bank they are going to want to see a "track record" for your LLC. You said it hasn't been used in 2 years? Had it been generating money prior to that? Most large banks are going to want to see 3-5 years in business generating profits. (Most businesses fail in the first 3 years) Also, you will gradually have to grow your credit lines for your business. Your credit will have to grow incrementally unless secured by assets (residence, cash, CD's, equipment).

This is what you will find at most large banks. Unless you can find a local community bank which can possibly offer different terms, this is the problems you will encounter.

I have a good amount of equity i can utilize in my primary(i plan on renting it). I plan on purchasing another home soon i would like the opportunity to use the loc if necessary. i dont want to ruin my dti by adding another payment before applying for conventional financing.

Does a HELOC with a zero balance show as a 0$ payment and not count towards my DTI?

Thanks in advance!

so if the balance is 0, does that show a 0$ payment and not effect dti?

(currently looking for myself)

in the documents section there are some great lists which may help you

look under

Resources > Fileplace