All Forum Posts by: Mark A. Roberts

Hey BP family, I lost my mom and recently went through probate and received her house. Is there a way that I can keep the interest rate as is and sub-to it to my LLC? Interest rate currently (4.25%) owes 43k on the mortgage, monthly note including taxes and insurance $470. I am going to put it on travel nurse/corporate lease sites (fully furnished, all bills paid) since she lived right down the street (less than 5 miles) from hospitals, clinics, and business parks. The home built in 2010, currently valued at around $170k, and purchased for 70k on a special senior program with no money down. I do not know if I should pay it off, wait a year or two and do a cash out refi or do one now (at around 7.7%). Rent with travel nurse site could be $1800-2k per month (cash flow: around $1200k, CoC: 21%) if paid off. Regular rent around $1440 a month (cash flow: $360, CoC: 11.8%) with around $80k in pocket after refi for purchase of other properties (rise in expenses expected with insurance, utilities and such, numbers reflect it). Is sub-to possible in this situation to keep the interest rate at its low original number with $537 cash flow monthly, CoC: 17.4%, no money out of pocket and use the 43k to purchase another property? Any other suggestions to path forward would be more than welcome as well. If I am missing any other info to add for a better solution/analyzation let me know. I do plan to hold on to it for wealth building (appreciation around 11.3% currently).

Thanks BP family,

Thanks Simon. Long-term cashflow is my goal. I am indeed leaning towards this strategy, just wanted to know what others think and if there is some strategy out there that I might be missing or unaware of.

I purchased a sfr property a little over a year ago for $110k and it has a current estimated value of $136k. My question is should I put a mortgage on it and use the money to buy more properties or leave it paid off to continue with the higher cashflow (currently renting for $1225/CF: $768)? If financed I could get possibly get around $90-$100k from it (CF: $200-$250 possibly). I have 2 other properties 1 sfr has a mortgage and the other (townhouse) is paid off from a HELOC I used to buy it outright. Any suggestions? Should all properties have a mortgage or are there other options that I need to look at?

Thanks.

Thanks Ryan,

My property manger only charges $80 and we greatly appreciate it because it is a bit higher from others we have look into. We agreed though as we get more properties that the rate would go up some to about $90 (she only charges a flat fee). I only calculated 5% for maintanence and 5% for vacancy. I missed the capx, I will add it in and see what the numbers look like. I had an inspection done and about $5000 should cover rent ready ops. Its in pretty good shape from what the inspector and the report said. 

Thanks for the response I can set my mind at ease at least on the initial part of the process.

Purch Price: $75k

Rent Ready $ 5k

Total cost = $80k

HELOC used $73k

Owner Capital $ 7k

Expenses: MNTH / YR

T/I = $221 / $2652

PM = $80 / $960

Maint = $62 / $744

Vacancy = $65 / $780

HOA = $168 / $2016

HELOC = $362 / $4344

Totals: $958 / $11496

Income:

Rent: $1300 / $15600

Cash Flow: $342 / $4104 (58.6%)

*Current Reserves: $15,000

I am currently under contract for this townhouse in Houston, Tx and I am a bit in disbelief. Can someone verify these numbers for me and assist if I am leaving out a category for calculation. I am hoping this is a good situation for me. It is a 3bdrm/2.5 bath, 1835 sqft, 2 car garages w/ fireplace, built in 1979. Rent estimates are about $1,184 - $1,459 a month. Currently valued at about $86,000.

I jumped on it after doing my numbers and could not believe them. I double checked and still came up with these results. I must ask for verification. Since it has an HOA are there any specifics I should look into that I may be missing?

Thanks,

Thanks, I see the point of view now.

If I use the equity (Home Equity Line Of Credit) out of my house to purchase a rental property, is my house then considered an asset since it would be responsible for bringing in money? Can it then be considered as my personal bank somewhat?