All Forum Posts by: Melissa Dinas

hi there - i just requested to be added to the facebook page. i'm planning on attending tomorrow evening. is there anybody coming besides me? 

@John Leavelle

1.  I have changed the numbers to reflect the actual loan proposal I just received last Friday. Yes, 9.9% is very high! But I need to get 100% funding and this is the only lender I have come across that will do that. They don't need any collateral or a down payment. I've gotten a couple of pre-quals from banks and to refi I'd have a 5.75% interest rate. I can't do a traditional loan for the purchase because I don't have the 20% down. So unless you know of a lender that will give me 100% (or pretty darn close to it) of the purchase + reno cost, I'll have to suck it up and pay this until I can refinance. 

2. Speaking of which...the reason I'm refinancing at the full 75% of appraisal cost instead of just enough to pay back the HML is because I need the cash to roll into my next property so I don't have to go the HML route again. I do have some savings that I can use in conjunction with the cash I'd be pulling out at the refi. I don't want to use my savings for the initial purchase because it wouldn't be enough to get a decent-size investment so instead I'll use it as a back up in case of some unforeseen emergency.

3. I thought I was being conservative! :-) I'll go back and bring them up. 

Thanks for the tip about the calculator. I think I understand what you're saying so I'm going to input those numbers and see what happens. I will come back with a link when it's complete.

Again, thank you!!

@John Leavelle   apologies, i must've forgotten to add the link: https://www.biggerpockets.com/calculators/shared/8...

i'm tight for time so can't respond to everything right now but thanks for looking at it and i will respond later today. don't want you to think i'm being rude! a definitely appreciate the time you're taking! 

@Costin I. please see above note :-)

@John Leavelle

I looked over the expenses and it appears that it does NOT in fact account for holding costs...which blows my mind. Surely that can't be right! It doesn't seem that would be something they would've left out...

Do you use a different calculator or have you developed your own spreadsheet?..

Yes, I am having a lot of difficulty figuring out how to use a hard money lender as the acquisition source. They take a 9.9% fee off the top. You pointed out that I didn't put an amortization length - there's no section to enter that in but it's 84 mo. with no pre-payment penalty and I'll be refinancing within 6 months. Monthly payment = $1,685. However, my question is, since it's a hard loan do I enter it as a cash purchase? Do I enter a 20% down payment? This is messing with my numbers, I'm sure. 

What do you mean by PM? Management? I entered only 2% because I won't need a management for the first property but I don't want to put 0 so I can save a bit. I will double check the vacancy rate w/local management co's and agents. Utilities will be paid by the renters.

I've also raised the rent after double checking that. 

Here's the new report with some adjustments. What do you think? 

@John Leavelle

Howdy! The Cross St. link, if you would be so kind! 

Thanks for your help

@John Leavelle

Thanks for your response. I understand now why it is INF%, thank you!

Here's my thought process on the expenses: I only put 3% on repairs & capex because this particular property has been (mostly) rehabbed by the current owner who ran out of money and can't do anymore. I will put in some more to shore up whatever else needs to be done so I'm not expecting any major repairs for the next foreseeable years. I usually have those expenses at 6-8%. Do you think I'm still tricking myself? In other words, should I put in the 6-8% in order to be ultra-conservative? What other expenses were you referring to?

I see what you mean about the negative cash flow & rental income. I have to take another look at this one.

Thanks for your reply. I appreciate you taking the time to look at my numbers and hopefully answer some more questions. 

Since I'm still very new to this I may be wrong but I believe the amortization should be 7 years because it will compute what my monthly payments will be stretched out over a 7 year period. If it's only over a 6 month period, the monthly payments will be astronomically higher. The 6 month time period is to compute what my new payment will be with the new terms through the refinancing lender.

Please correct me if I'm wrong...and I'm still trying to find out how my monthly cashflow can be negative when my CoCROI is INF%??

Here's a link to my report:

https://www.biggerpockets.com/calculators/shared/8...

Any thoughts and advice would be greatly appreciated!