All Forum Posts by: Mark K.

My wife works a job with a 401K. Earlier this year, we took a loan out of it.  We used it to buy a distressed house for $24K.  We then had it almost totally renovated for $22K.  So, we had $46K all in.  We are in the process of doing a cash back refinancing and close soon on it.  The house appraised at $77K.  We are taking out roughly $50K.  We are paying closing costs from it, will completely pay off the 401K loan and still have about $5K left over for us.  And, we will get nice, positive cash flow.  There is a tenant in place, so its basically like we got a free house and now the tenant is paying the mortgage. 

I have two single family homes in 35206. Probably a C neighborhood. I paid $45K for one, 4/1 that rents for $750. The other is a BRRRR house. I bought it for $24K. The rehab is almost done. I'm not sure yet what rent we will get for it.

Have you been to Birmingham yet?  I've been there 3 times so far. 

I use Rav at Trading Earth.  He's a great guy.

I'm actually in Birmingham at the moment.  I drove about 600 miles today to get here.  I have two rental homes here and one is being renovated.  

I'm trying to remember, do you have any rentals?

I used this company last year on a house I bought in Birmingham.

http://magiccityinspections.com

I have no affiliation with them.  I had read various Google reviews and just chose them.  They seemed fine.  

Oh, I will be painting the doors/trim a different color from all of the walls. 

I'm in the process of renovating an apartment in a triplex. In regards to painting it, I'm hearing different ways to do it from contractors and such. 

Is it best to paint the bathroom and kitchen walls a different color from the other walls? Or, can the same paint be used? One painter I know says in rentals to use the same paint to keep costs down. 

What are your thoughts? 

I'm going to put one of my rental houses for sale.  I've owned it for about 17 months now.  I've had the same tenants in it for the past 16 months.

I gave them 30 days notice that I'm going to put the house on the market.   

Since they had wanted to stay there, but due to me wanting to sell the home, they have to move, does this change anything?

Meaning, they are supposed to give me 30 days notice.  Say they find another place and can move there asap.  Do I cut them a break and give them their full deposit back even though they didn't give me 30 days notice?

What do you think?

@Ned Carey, thanks.  I did have a mistake in my numbers.  I fixed it and it puts me slightly over $200 in positive cash flow.

I'm looking to buy a distressed SFR 3/1 for $24,000. The estimate for a full rehab to get it rent ready with a one year guarantee of no maintenance that I have to cover. The estimate is for $21K.

So, $45K in with seller paying half of closing costs, so an estimated $700 paid by me for closing.

I got a refi estimate.  It came in at 6.25% interest 30 years fixed with closing costs of about $4500.  The refi amount is $45K with the closing costs paid out of the refi. 

My goal is to always have at least $200 positive cash flow on all of my rentals.  

If I can get $800 a month in rent, I'm still under $200 in positive cash flow. It would still have great ROI as I'd only have about $5K out of pocket.

Yet, should I get this if I can't get at least $200 in positive cash flow?

Any thoughts?