All Forum Posts by: Carlos Sanchez

Yea it's about a block away from northboro elementary. 33407 is the zip code about two or more blocks east it's a spotty area but the block that it's on and east from it has a combination of 400k+ houses and multifamily properties.

Could use help making a final decision. Here's what I have; West Palm Beach triplex 322k Unit 1: 2/1 1,050 sqft Rented for 1,175 until 3/1/2018 Unit 2(upstairs to unit 1): 2/1 970 sqft Rented for 1,300 until 12/1/17 Unit 3 (detached with private parking): 1/1 620 sqft Rented for 900 until 3/1/18 Has a one car garage that I can convert to a 2nd bedroom (estimated cost 5k) Built in 1929 bought two years ago by seller Claiming to have done 130k worth of work Both building are flat roofed Separate electrical and owner pays water Last triplex sold august, 2016 for 302k that had smaller units Financing: 3.5% down fha 4% P&I: 1,477.50 Taxes: 443 monthly Insurance: 384 monthly (high estimate) (I will live in extra built room in unit 3 for 6 months) Good or bad deal?

Looking for an honest opinion. Would appreciate any insight to compare my thoughts with yours. This deal is looking me right in the face. It would be my first investment property. My goal is to buy and hold, cash flow with a $1,000 a month and aim to refinance to pull initial investment back, pay off lenders and use equity to rinse and repeat.

Heres what I got;

Property: Triplex in Lauderhill, FL - Advertised by wholesaler

• 3 bedroom 2 bath - 1200 sq feet each unit 
• advertised with rent comps at $1,500- $1,650 (realistically should be $1,000-$1,200)
• Listed at $249,900 with direct comps sold up to $300k - $315k in 2015.
• Estimated taxes $6,000 a year
• Estimated insurance $2,000 a year
• Estimated maintenance $2,000 a year
• 100% Vacant now with 2 potential squatters according to wholesaler
• Property is in good shape minimal rehab 
• area is about a c+ near turnpike 
• will be seeing property in person tomorrow

Lending:  

HML - offered from mort broker - estimated payment - $2,000- $2,100/monthly (P&I + insurance+taxes) for $250k loan

• 2 points upfront
• no prepayment penalty  
• 7% interest
• 80% LTV
• 20% down
• Appraisal $500

Bank - From Guaranteed Rate - Estimated payment $2,200/monthly for pre-approved loan at $300k

• 5% APR
• 30 year FHA (option for 203k loan)
• 3.5% down (first time homebuyer) 
• informed can cash out refi for up to 80% of equity after 50 days from HML close

Alright so my intent is to buy it cash with HML, aim to have tenants within 3 months, and cash out refi by the end of those 3 months. A little about myself; I have no debt, 806 credit score, have 35k to invest, 15k available to use from access check on business credit card (plan on using for minimal rehab) and will be receiving loan from family for 20k to help invest at a 5% return to them.

I'm in analysis proalysis stage unfortunately. Would love some insight to help guide me through this or for any of my future deals. Thanks.