All Forum Posts by: Curtis Cecil

Thank you for the responses. It's true to factor in vacancies if more than one go vacant but it would be the same with brrrr since after you get more than property on a loan same issue.

My goal is to replace my W2 income so I need more properties that produce cash flow. Once that's done I won't stop but at least I can look at small multi families before looking at bigger unit buildings.

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So I'm curious to know which way is better.

So let's say I have $100k cash and I can either put 30% down on $100k duplexes, or buy 1 in cash and then BRRRR. Which is better? Numbers show that if I bought 3 houses and after NOI and Debt service I have around $430 per house so around $1290 a month.

If I were to buy a house in cash, do whatever renovations needed and then cash out refinance to do the same thing with the next house and so forth...

The second option I can keep going whereas the first option I don't have any other cash to buy the 4th property... am I correct?

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Quote from @Erik Estrada:

Quote from @Curtis Cecil:

So I have a non-primary house that is valued at $220k on Zillow (just a reference point), what options do I have to finance around 100k out of it to renovate the house? Credit is fair but not great, I have access to a strong co-signer if I need to. My Primary residence has some equity but I would rather figure out how to collateralize the non-primary house.

Any ideas???

Hey Curtis,

What would be considered a fair credit score? 680-700?

Just a bit lower

Is your non-primary home a second home or an investment property? How much do you owe? Is the property in distressed condition?

Investment, going to be a flip. Free and clear.

There are several ways to approach this depending on your goals.

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Quote from @Mike Grudzien:

Quote from @Curtis Cecil:

Any ideas???

Curtis,
"valued at $220k" is one part of the equation. How much equity do you have? Do you own it outright? You could do a cash out refi, but you'd be dealing with current interest rates.

MIke

Sorry Mike, I missed your post. It's free and clear, owe nothing on the property.

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It's not rented out. It's originally was going to be but it's a flip now.

1 Vote

Any ideas???

1 Vote

Quote from @Chris Seveney:

Quote from @Curtis Cecil:

So let me give you some hypothetical numbers.

I buy a house for $150k. Current value is $210k as-is. ARV is around $300-$350k. So I was told that I could do a cash out refi for $150k. That puts debt against the house. I can use the funds to renovate the house and use left over to buy another house. Once I make the renovations and list the house for sale. Let's say it sells for $300k for numbers sake.

Since I have a loan that loan has to be paid off. Loan gets paid off and that leaves me $150k, the original purchase price of the house. So since I had a loan that needed to be paid and I just got my original monies back there's no profit, thus no taxes to be paid....

Is that correct? I know about 1031 exchanges to avoid taxes but not getting a loan against the house to prevent profits....

Umm. No that is not correct unless you want to commit fraud.
Lets say you buy a home for $150k cash. Lets say you take out $150k loan against it and spend $25k improving the property and the other $125k on another property. Your basis is $175k not $300k.

The amount of loans you get on a home have nothing to do with taxes you pay/ larger loan = less basis. Who was this genius guru?

It was a short by karlton dennis, tax strategist

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So let me give you some hypothetical numbers.

Is that correct? I know about 1031 exchanges to avoid taxes but not getting a loan against the house to prevent profits....

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Hey Everyone,

Just wanted to pick everyone's brain to see what my options are. I won a house on auction and sent payment in full to pay the auction result. The thing is they told me that it will take between 10-12 weeks to get the deed in my name. In that time am I able to get insurance on the house so in case anything happens to the house until I get the deed?

The house is in great condition but knowing winter is coming up, it's possible for someone to break into it and whatnot.

Thanks!

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Quote from @Joe Villeneuve:

Quote from @Curtis Cecil:

Quote from @Arn Cenedella:

Quote from @Joe Villeneuve:

Agree 100%. Cash flow is nice but it isn't "King". What's the use of cash flowing $1000 per month if if it cost you $100,000 out-of-pocket to secure the property. It'll take you over 8 years to recoup your OOP costs. Value add is the best way to go and using the banks money to finance the projects. If you have an opportunity to add an additional unit or two so the rents cover the financing (like from a HELOC) and then profit from the positive cash flow, that's truly how it should be defined. "What's the use of cash flowing $1000 per month if if it cost you $100,000 out-of-pocket to secure the property."

If it took $100k to buy $1000/month in CF I wouldn't buy it either. That doesn't mean cash flow isn't King. It's just an example of why you wouldn't buy the property.

So $12,000 a year CFI (that’s $1,000 a month) is a 12% annual cash on cash return for $100,000 investment.

I don’t think you mean that do you?

I think even “cash flow is king” investors would be pleased with a 12% annual cash on cash return.

Sorry, long time lurker but trying to get back into RE investing. I was lost on that comment about why someone wouldn't buy a $100k house if it was making $1k a month in rents...? Why not?

I'm about to buy a house from my father who had the house for about 13 years. He bought it for $27k from a sheriff auction and put about $24k in renovation dollars. He's selling it because he doesn't want it anymore and it's out of state for him. I offered to buy it since there were a lot of investors that were jumping on the deal so it must be good. From what I figured out, it's not the best neighborhood but it rents out for $1500/mo. Purchase price is $50k, rehab costs is around $15k.

My goal is replace my W2 income with real estate so why not BRRRR with the first house being this house. I understand interest rates are high but why do people think BRRRR is dead?

It takes too long to recover your cost...which is the cash that comes out of your pocket.
As far as your father's house goes, you stated incomplete sets of numbers. Rent doesn't matter, cash flow does. What you payed for the house doesn't matter. What matters is the property value.

ARV is approximately around $110k

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All Forum Posts by: Curtis Cecil

Curtis Cecil has started 6 posts and replied 18 times.

Post: BRRRR or buy multiple at one time???

Post: BRRRR or buy multiple at one time???

Post: What financing options do I have???

Post: What financing options do I have???

Post: What financing options do I have???

Post: What financing options do I have???

Post: One of those Youtube guru's advice....

Post: One of those Youtube guru's advice....

Post: Getting Insurance for a house bought in auction but no deed?

Post: Cash flow is NOT king!