All Forum Posts by: Meir Preis

About 14k to fully furnish (including furnishing fee) so 65k all in. It is a three bedroom 2 bath. Sorry I should have added that info to the initial post. Focusing on short term contract workers, insurances placements etc

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Congrats on the new units! My experience has been to pick a PMC that can also assist with the furnishing. It will probably run you 3-5k but I found that this cost was offset by the time and hassle. You will most likely need to take several trips as there are dozens of items that you will need to buy and the shipping dates will not perfectly align and on top of that some of the items will require install etc. Add multiple flights, car rentals and the likely need for a handyman I personally feel the furnishing fee pays for itself.

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Investment Info:

Single-family residence buy & hold investment in Charlotte NC.

Purchase price: $251,000
Cash invested: $51,000

MTR in a suburb of Charlotte NC- bought as a turnkey property. Property manager identified the property.

How did you finance this deal?

Conventional loan- 20% down

How did you add value to the deal?

Fully Furnished

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Well said, Thank you. I think I am just a bit excited and want to jump in.

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Greenville, North Carolina

Thank you for the detailed insight!

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Greenville, North Carolina

I appreciate the insight. In my case the truth is I dont need the short term positive cash flow, although it would be nice, so it seems real benifit is the long term appreciation and asset value.

1 Vote

Greenville, North Carolina

For starters, this is my first BP post :)

I have been looking in the Greenville NC area and Eastern NC for an investment property that I would be renting out for LTR or MTRs. I have cash available for a down-payment and I am pre approved. I am not looking for a property that would need substantial work. Thus far I am finding

-Even with the current rates houses are moving very quickly off the market and they are going for the asking price.

-The average monthly rental income, even from higher MTR amounts, is producing at best a minimal positive cash flow and a very poor CoC.

It seems that housing prices in the current market (mortgage and monthly costs) are exceeding what the going monthly rental rates are in many areas which translates into unimpressive cash flow.

Am I missing something? Thoughts?

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Greenville, North Carolina

Quote from @Paul V.:

Quote from @Bradley Bladon:

Great advice but for the fact that after 1 year, and 5% down, you will still have no equity and the max LTV on c/o refi is 80%.

He would need to score a turnkey house at 50-60% LTV to even be remotely worth doing g a refi after 1 year. Don't forget the closing costs wrapped in the loan.

After CC on the initial purchase, he’ll be roughy8% in the deal from day 1. You would need double digit appreciation to even off set that after a refi.

He needn’t go any further than running an amortization schedule to see his loan won’t move in year 1 to amount to anything. He would need 25%+ appreciation and a very aggressive principal reduction plan to accomplish even a refi of the original loan amount.

A VA Loan would be the only exception to my scenario …or holding the property long term and refi further down the road .

That is not a plausible realistic game plan.

@Bradley Bladon I'm not sure if you are referring to my advice or someone elses. I'm not sure I understand your comments. I didn't mention him doing a cash out refi in 1 year.

Breaking it down a little further... @Brendan Bouffard has $125k to invest. He could put $35k down on his first primary res property year 1, another $35k down on a different primary res property in yr 2, another $35k down on another property year 3. It would be 4 years out until that $125k was fully deployed.   If he can buy them at 5% down, then that would be a purchase price of $700k per property. After 3 years he would own $2.1m worth of property. Assuming a health local market, rental income, appreciation and pay down will come down the road. I'm not advocating for a short term plan, but a long term plan.

Many people don't have the flexibility to house hack like this and move every year (No chance my wife would let me do this now), but if you are at a window in your time of life, it presents a great opportunity.

@Paul V. Could this plan theoretically be executed without moving residences every year or is it contingent on moving into the newly purchased house a factor with obtaining convectional financing?

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Kevin,

You mentioned that you are managing the property yourself. How does that work with the long distance (CA to TN)? I am trying to figure out if I need to first start out with a more local investment property or to just make the leap and go long distance if I find the "right" deal. Thoughts?

1 Vote

All Forum Posts by: Meir Preis

Meir Preis has started 2 posts and replied 13 times.

Post: How I Turned a Bad Deal into a 1% Cash Flowing Rental

Post: MTR-Fully Furnished suburban property

Post: Furnishing a property out of state/long distance?

Post: MTR-Fully Furnished suburban property

Post: Are there still positive cash flow deals??

Post: Are there still positive cash flow deals??

Post: Are there still positive cash flow deals??

Post: Are there still positive cash flow deals??

Post: 125k to invest, where to start?

Post: First STR purchase (Smokies)