All Forum Posts by: Matt Hummel

I agree the 511k would be high, i was thinking about 470k or so. If went there i could get back about 50-70k of the 92k i put down back. I would still be getting a good cash flow that way. 

@Brian Gerlach So the appraisal i had done before i bought it obviously came back at my purchase price. How do I navigate this? Id like to use my same bank, can i just asked for it to be re done, and tell them what my insurance company gave me for a quote or what? Or do i go find another bank and have a fresh set of eyes look at it? 

I bought an off market 3 plex that was used for one family to live out of, they owned all the units and lived in them all. I bought off market for what I am pretty sure was about 70k less then I thought it was worth as a house in the area. I bought it for 370k and have all the units rented out for year contracts at a total of 3850.00 a month. Also, my insurance company after looking at it, had me insure it for 511k calculated rebuild cost, it also sits on 2/3rd acre in a nice area...

I think i know my answer but before I go look around I wanted the opinions of others, Can I do a cash out refinance now that I have it rented even though its only a 3 plex and not a commercial property, according to my bank who classifies them as 4+? Any additional info or opinions would be appreciated !

thanks in advance

Matt 

yes sorry, what i ment by the 0/100 was the 0 had no money into the deal. I was thinking a 30% stake would be in the ball park since i do have experience and a track record of always have units full and have good margins and cash flows....

I remember when the interest started construction, i think i was in diapers. That should be a HUGE red flag.

How would you structure a 50/50 partnership if one person did the managing and finding  of partnership and the other was just equity?

Next how would you structure a 0/100 partnership if i the 0 did the managing, finding the deal, etc.? The one specific is the equity investor would like tax write offs....

What type of properties and at what price point. I like that area. Let me know. 

Plan for your first SFM to be a 3 bedroom 2 ba.  Then rent to you start and good friends, rent out your rooms. You should be able to live for free in it. When you out grow living with friends, rent it out and go buy a new place. PM me i did the same thing to start. 

A rough estimate, i would minus the cost of appliances and double the cost of materials. Without knowing the details that should get you close unless you contractor very high end. PM me for more detail. 

Hey, well thanks. Ha. I have a plan Ill stick with that.