All Forum Posts by: Michael Rodriguez

@Patrick Roberts & @Tim Delaney- which lenders/ loan types are good for 80%? What about rate and term refinancing? Are you two seeing LTVs higher than 80% on that front?

Originally posted by @Jody Newman:

Originally posted by @Ben Leybovich:

Hey, so the question you didn't answer (or even think of) is what will your exit look like?

In other words, will it appreciate in price? Why will it appreciate in price? prove it :)

 Ben doesnt like Cheap *** properties.   They really dont make money.   LISTEN 2 BEN.

Do you mean cheap as in purchase price, current condition, or low income neighborhoods?

It definitely is a lower price point neighborhood.

The neighborhood is working class. The price is a steal for the quality. AND much of it condition wise was replaced in 2015 dueto a fire. All windows amd floors amd the roof were replaced.

Please clarify 

Originally posted by @Matt Finneseth:

Originally posted by @Michael Rodriguez:

Great question, @Ben!

While purchasing other properties and paying this one down early so we don't hit the 8 property limit.

What do you mean by "8 property limit"?

There is a cap @4 on the number of mortgages one can have at any given time. My fiance and i can each do 4 which allows us to get 8. This will amd can be offset by home equity loans and paying down mortgages early to free up a few.

Great question, @Ben!

I'm not sure about appreciation to be honest. What I do know is that I've done researched comps amd the property is actually worth $115,000 currently. My long term plan is to hold this property While purchasing other properties and paying this one down early so we don't hit the 8 property limit. My goal is 20 properties totaling no less than 50 units in the next 7 and a 1/2 years. From there, I intend to either Use the equity that I have in properties for a portfolio alone on a larger multifamily purchase or development (25+units). My backup plan is to sell off some of the properties (lowest cashflowing) for money towards the down payment on the large multi.

My primary intentions are all cashflow based with tax writeoffs along the way.

@Ben Leybovich this is the post

I am not. AND i have a lender doing 5% down (i lknow thats unheard of)

please excuse- the PMI is actually around $60/ Mo.... NOT $130

Hi All! I've beem researching the Rochester NY amd Buffalo NY markets for approximately a year now while listemimg to the podcasts (up to number 97) and educating myself as i go. im 27 years old and intend to retire by 35 through multi unit buy and hold investing and im starting with this property. looking for any and all feedback here! House is in Rochester The data (monthly where relevant): Neighborhood rating- C+/B- Purchase Price- $97,000 (30 year fixed @ 4.15%) 5% down plus closing costs (4850 +roughly 5000= 9850) PMI- $130 Taxes- $250 Water- $41 Insurance- $197 capex (very conservative)- $250 property mgmt - $150 Rental Income- $2,650 now in terms of vacancy, previous owner (friend of mine) has an agreement with a rehabilitation facility in the area that provides rent for a year as part of their treatment program. They are short on apartments for placement so they can keep my apartments filled at all times. Additionally- the capex is extremely conservative. it actually only requires 150/ month by my calculations based on how new most things are (replaced 2 years ago) but i added some extra buffer to be safe. how does this rate in terms of the deal? thanks in advance! -Mike

@Altwon Simmons I am currently in contract for a duplex in Lovejoy- The REALLY bad areas come with significantly higher eviction and vacancy rates. Yes the cashflow is way higher %wise- but that doesn't make it worth it to have someone in the unit not paying for a 2-3 month eviction/ turnover timeframe. That would lower your yearly returns by 25%.. Additionally, these warzone neighborhoods also tend to have higher crime rates and tenants tend to require more repair in between tenants during turnover times.

It's all about risk analysis. I picked a working class, lower middle end neighborhood to reduce the warzone concerns listed above while still getting a decent price. And keep in mind, a lower price doesn't make it a better deal. I got a steep discount because my seller is in a tight situation and has no money to fix up the property before selling it. I walked in knowing I had 3K in work to put in but I saved 13K off the price that I would have been cashflowing comfortable ($200 per door). That puts me in a great position. THAT'S where the money is made. On the purchase.

TLDR: Neither are wrong- they each come with different issues- Make sure you are analyzing neighborhood vacancy and eviction rates for these properties and factoring that into your cash flow calculations.

I am looking tonopen a sober house in the Long Island area. I will be opening an LLC to limit liability, knowing full well the tax implications are identical for LLC vs. personal ownership in buy and hold situations. My questions are as follows: 1) I'd like a friend of mine to run the house, filling it with tenants and maintaining the day to day activities. If i pay him as a 1099 employee of the LLC for property management, can I deduct this off of the LLC income tax at the end of the year? 2) Can the interest of the mortgage and repairs/ depreciation be deducted in LLC ownership? 3) Are LLC properties able to be purchased with FHA or low down payment (5% or less) conventional loans? Thanks in advance for any and all assistance! -Mike