All Forum Posts by: Pete Fiannaca

Aaron Vergason Hey man, Rochester NY here! Would love to chat at some point about what's working for you down in the southern tier! I get the 80%/refi/equity, but I keep running into appraisals that come in at contract price, even when I know that the home is worth more based on the area, comps, etc. Feel free to message me! Couple nice 8+ units in Rochester I could point you too as well. Pete

BP Community- 

I'm new to the game and and trying to wrap my head around a few items here. My goal is to buy and hold single-family rentals long term. I'm trying to set a goal for what kind of cash-flow I need to accurately replace my income from my 9-5 and I want to be sure I'm considering the whole picture.

Round numbers...

If I'd like to replace a $5000 monthly salary, and can comfortably bring in $500/door after PITI, maintenance, etc. Does it stand to reason that I'll need to plan on 10 properties before I'm able to quit the grind? How will my tax burden be affected since my main stream of income will be from "passive investments" instead of a salary. How does it change again if I'm using/not using property management? Will my tax bracket go down, giving me the same $5,000 result with potentially 8, or 9 properties?

Besides, PITI, maintenance, reserves, PM schedule and the basic expenses, I guess I'm mainly concerned about tax implications.

Am I looking at this the right way?

Western New Yorker here...

Gotta be careful in that neck of the woods. Southern 219 is in Allegany County (poorest county per capita in NYS). Not too many people looking to move there voluntarily, especially not in the $200K range unless buying up acreage for hunting cabins, rec land, etc.

Northern 219 trails off near hamburg. With everything that we're hearing about the resurgence of the Buffalo area, I would certainly take advantage of a good deal in or around hamburg.

Just my 2 cents!

Best,

P 

Mike, that number is NOT inclusive of escrows (taxes, insurance) etc. -p

Hey everyone. Quick question...

Single family home purchased with a conventional loan. 4.5% for 30 years and 20% down. Contract price was $72,500 and mortgage amount is $58,000.

CC, or "settlement charges" as my loan company calls them are right around $5500, or almost 8% of the purchase price.

Seem a bit high to anyone else other than me?

Thanks,

Pete

Hey BP Community -

Apologies in advance, but I didn't see a clear cut category to put this post in, so I left it here in a spot that might get some viewership. Not sure if this has come up before, but I'm looking for leads on a portfolio forecasting tool (preferably via Excel). I'll explain.

Wondering if anyone has ever created, or seen, a spreadsheet that allows you to input properties as they are acquired; along with all relevant data like contract price, down payment, taxes, anticipated NOI, etc., and summarizes the individual properties into a "totals" table.

For example, it's easy for me to know what my net cash flow is and equity in property #1 is any any given time. What if though, I want to forecast my total debt, total equity, and total cashflow, 6 years down the road after acquiring 4 or 5 properties. This spreadsheet would obviously need to be pretty complex as it would need to keep a month by month tabulation of monthly payments on each property (assuming a loan) as well as principle being paid down and factoring that into total debt vs. equity, so on and so forth.

I'm hoping that example gets the list across. Again, would like to use it to forecast. Any leads would be great. If no leads, I might venture into making it myself. Pondering if something like that would be useful to others besides myself...

Best,

P

@Matt Bell I like the BRRRR way of life as well. What Tough part is, anyone going through conventional lending on their first property usually needs to wait 12 months before they qualify for a refi... That's what I'm running into up here in western NY. If that wasn't the case, I could probably be scooping up properties faster than 1/year.

Wondering if anyone here has ever challenged an initial appraisal, before closing? Success? Not so much? My motive is to have a little more equity in the property from the start. Appraisal came back at contract price which was unexpected given the comps in the area. Thoughts? Pete

I do not envy your position. It's so hard to be in a Denver or San Diego type market where homes are untouchable. Even if you could get into a modest 2 bed home, your rent income isn't going to help a long ways against your PITI. If you're looking at out of state, western NY is my home and has been on the rise for a few years now. Buffalo, Ny is garnering national attention for being an up-and-coming city (revitalization projects everywhere) and Rochester is making some waves too. I just bought a 3 bed, single family home that I'm renting for $1350/Month. Purchase price... $72,500 I know NY might be a long ways away, but I'd dive into the news and see what cities in your area are maybe being redeveloped or receiving grant money from the state/Feds to develop infrastructure. Good luck!

Not yet James... Need to raise some capital for the second deal first. Might still be 3-6 months out. Currently looking for seller financing on my next acquisition, or a private money source that is willing to chat about 90% LTV.

We'll see what happens!