All Forum Posts by: Mike Rutherford

@Marc Winter  Thanks for your reply.  After reading a few books and really analyzing different scenarios, I realized the $300 marker was not a reality.  While I am truly 'netting' $300+ a month, what I wasn't considering was capex and maintenance reserves and vacancy loss, because I haven't yet experienced them.  Having said that, when I consider those future losses, my net cash flow is more in line with $100-$200 per month.  I do realize this a long-term game and I am building reserves with the current cash flow.  

I'm also looking at a quad across the street.  Baseline numbers:

List price:  $229,000

Current rent roll: $2,675

I would likely manage myself and likely leverage my HELOC to be fully leveraged.

Thoughts?

Mike

Update: I'm under contract on a duplex, +2. It could use a little updating but has a brand new roof, thanks Hurricane Michael. It's fully rented through 2020. I actually used my HELOC for the down payment, so technically I'm in with no money down. Here are the details:

Purchase price: $109,000

Rent roll: $1,300 ($650 per side)

First mortgage: 75% at 5.375% for 30 years

Second mortgage: 25% at 5.5% at 20 years

I'll be managing it myself.  As I'm tweaking my goals, I've backed off my $300 target and looking to be net cash flow of $100-$200 per door and be highly leveraged.

Please share your thoughts on this deal and offer up any advice going forward!

Thanks -

Mike

@Diana Muresan  I'll likely wait the six month seasoning as I will be holding these. 

@Nicholas Covington  Know of any mortgage broker with an interest, potentially from afar?

@Brian D. Beatty  Yeah, I'm definitely interested.  Looking for multi family with cap rate of roughly 10%.  I

@Justin Kane I had the same question as @Nate Fanara, what are blocs?  

@Nate Fanara  How are you approaching your deal with financing, can you explain?

I've decided to expand my rental investing portfolio into the Tampa and surrounding area.  I'm looking to build out my network there.  I have family in Valrico but only in market a couple of times a year.  Can the BP community recommend any rockstar realtors and property management companies, potentially specializing in partnering with out of towners?  Also, need good home inspectors and lenders.

I'm analyzing my first BRRRR project. I found a bank here in town that will do a variety of portfolio loans. I was explaining the project and asked how soon I could get my cash back out assuming I had more than 25% of final ARV. She said delayed financing and cash out refi were basically the same and I had to wait six months. It's not a deal breaker, but I would rather have my cash back out immediately if that's an option. From the podcasts I've heard and the posts I've read, I'm assuming that is an option. Can someone help me out here? Or at least explain the pros and cons of each? Thanks much.

@Jason Bible I have a couple of SFR's that are cash flowing pretty well. I'm looking to get into MF but I can't seem to find a good deal that cash flows. I'm looking for a cap rate of north of 10%. Any suggestions on finding deals for MF? I'm working with a realtor that is searching for some off market properties, but considering they are from his realtor partner I doubt I'll get a deal. Thoughts?

@George Blower @Justin Windham Thanks for the info!