All Forum Posts by: Nicole Candelario

Is it possible to finance a BRRRR and still make money when you refinance? I'd LOVE to purchase a distressed property with cash, but I don't have enough. If it "is" possible, what financing options work the best? Would an FHA 203k loan be good? Would a private loan be better and if so how do they get paid back? Sorry for the elementary questions!

Nicole

I'm currently living in one of the 4 units of my multi family property and I'm trying to calculate the ROI. I'm only paying $200/mo after I collect my rents. I could rent out the unit for $2400/mo if I moved out. Can I use the market rent for this unit to calculate my ROI or do I have to use what I'm only collecting from the other 3 units? Also, I financed the repairs into the loan. Do I calculate the repairs as part of my initial investment? I financed the property with 100% financing. The only "cash" I used was $5000 for an EMD and $1650 for taxes and insurance (I was able to use the rent deposits toward costs plus my loan company paid closing costs for the seller and for me!) Sorry if I worded this wrong. It sounded so much better in my head!

Nicole Candelario

DRE# 01984085

Hi Jeffery. To my knowledge transactional funding is another way to show proof of funds for your seller. Sometimes they want to know you have the $ in your account before they sign the contract. And since your a wholesaler that plans to assign the contract, there are companies out there (transactional funding) that shows an amount you can use for your seller. Not sure what their fees are though. Double closing is different. It's the way in which the title company closes the transaction. Good luck! I’m an agent in So Cal if you need anything 

Nicole Candelario 

BRE #01984085 

Thanks @Jaysen Medhurst! I agree that it would not be a good rental situation and unless the property could be divided like you said, it’s not worth it. And both houses are total tear downs! I’m going to run away! Thanks again!

Thank you @Account Closed! My husband also says he's not sure that anyone's going to want to live next to to a lot being rented out to store vehicles either....unless we build a huge wall (right now it's just a construction fence).  Sounds like there are things that we don't know causing the owner stress. He claims that the owner across the street is breaking in and damaging his property out of spite. I definitely don't want to deal with that.  

Hi everyone,

There is a local property for sale through HUD that I looked at today and I'm trying to find out if it is worth it or not. I'm interested in flipping right now and not renting (that will be later) There are 2 houses on an acre lot. The neighborhood is decent. The houses are 3/1 and 2/1. One looks like it needs to be completely tore down and rebuilt completely and the other one is being used as a crack shack (literally....we saw debris). The owner is asking $450k for it. The property is not zoned as multi family only R-A-1. The city is allowing it to be sub-letted; 1 water meter, 2 electric and 2 gas meters. Nice sized yards, in ground pool in back of one house and beautiful view of the mountains. Could be rented for $1600/mo and $1400/mo. Not sure of the ARV since it's 2 properties on 1 lot. For a SFR, combining all beds and baths ARV would be $390k. For 2 separate properties, probably $450k - $500k. Am I way off? Should I run? Should we offer 50% - 60% ARV because of the extensive rehab? He is MOTIVATED. Wants to move out of the country and have it sold in 30 days. It's been on the market for 18 days. Thank you!!!!

Hi everyone,

There is a local property for sale through HUD that I looked at today and I'm trying to find out if it is worth it or not. I'm interested in flipping right now and not renting (that will be later) There are 2 houses on an acre lot. The neighborhood is decent. The houses are 3/1 and 2/1. One looks like it needs to be completely tore down and rebuilt completely and the other one is being used as a crack shack (literally....we saw debris). The owner is asking $450k for it. The property is not zoned as multi family only R-A-1. The city is allowing it to be sub-letted; 1 water meter, 2 electric and 2 gas meters. Nice sized yards, in ground pool in back of one house and beautiful view of the mountains. Could be rented for $1600/mo and $1400/mo. Not sure of the ARV since it's 2 properties on 1 lot. For a SFR, combining all beds and baths ARV would be $390k. For 2 separate properties, probably $450k - $500k. Am I way off? Should I run? Should we offer 50% - 60% ARV because of the extensive rehab? He is MOTIVATED. Wants to move out of the country and have it sold in 30 days. It's been on the market for 18 days. Thank you!!!!

Thanks @Account Closed!

Thank you!!!

Hello fellow landlords!

It’s been one year since our tenants have been renting from us and after reviewing the market rents it seems as though we are receiving at least $200/mo under the norm. With that said, our tenants have “not” been the most desirable tenants. Part of that is my fault (I neglected to get a pet deposit from them and pet addendum). I have decided to increase the rent at least $100/mo along with pet addendum & pet deposit. Is there a certain amount of time I have to give them before it goes into effect or should I just put the new amount in the new lease? Any advice is appreciated!! Thank you

Nicole