All Forum Posts by: Michael Davis

 Mostly..not knowing what I don't know.

Trying to invest in my state in the event something goes wrong I can personally be the boots on the ground.

I'm planning to leverage 100k HELOC and don't want to be stuck paying for that if the investment were to go south. Such as going over budget or not appraising for enough. In which case I suppose I could sell the property and recoup most of my money.

Maybe I don't have enough money to invest, and I'm not exactly trying to get in bed with hard/private money lender

I guess I'm not comfortable pulling the trigger currently.

I feel like I'm stuck in analysis paralysis, As well as going belly up.

I'm constantly looking at the market as I'm a licensed agent with Keller Williams.
I plan to leverage 100k from a HELOC.
I'm just not seeing something that makes me want to dive in feet first.
I person I ran into some who does flips said maybe try doing a flip for the first time to gain the confidence. However I can't bring myself to have to pay all the capital gains taxes.
Also I wouldn't want to need to pay back the HELOC and suffer a capital gains tax payment.

Any advice?

Should I start looking further outside my back yard?

Trying to get a BRRRR that will likely cash flow or break even on.

I'm a reasonable area with relatively low crime rates.

I begin to make more money year over year.

I figured $900-1000 would be mortgage payment including PITI.
So I assumed $200/month net income
Which would be $2400 a year.

Forewarning I may be over complicating things.

At this point I'm simply theorizing, I have yet to see the property in question. I had someone reach out to me to see if I was interested in buying a property delinquent on taxes.

I would be leveraging around $100k in a HELOC to buy my first BRRRR.

Theroy:

Buy the house at $50k

Invest $40-45k on the rehab

Rent the house for $1200/month

70% LTV would be $84,000 if the property can appraise for $120,000

Left in the deal $6000

I tried to use a ROI calculator and also tried to do it by hand but I'm missing something.

What would be the ROI for this property?

Feel free to comment or DM me