All Forum Posts by: Jonathan Perez

 Hey Joseph, have you verified that the community your townhome is in will allow for medium term? 

A lot of townhome / condo / HOA communities have minimum lease terms and a maximum percentage of the community is usually limited to a certain amount of leases allowed etc.

So just something to look into if you haven't.

IF it's all good, I would definitely give it a shot being that it's near the Naval station and several  hospitals. 

Not sure what the specifics are on this deal but if it will cash flow the way you need it to as a long term rental then that could be the better / safer way to go as a beginner too.

What were your initial plans with it before buying?

First time using hard money to do my 2nd flip and I have someone who will finance 100% of the purchase and rehab up to 65% LTARV. 

I would only pay closing costs and can defer interest only payments for the first 6 months rolling it over in to the total loan amount.

This is a condominium I am looking to flip. (seems pretty easy, light cosmetic work) 

I like using the BRRRR calculator for doing my fix and flip analysis because it's easier for me read and input the hard money details. I like how it shows what the results should be if I was to keep as a rental after refinancing but also still provides the "total profit if sold" in the first year which is what I'm using to determine the total profit at the end of the flip.

I just wanted to share what I got out of my analysis to see what others on BP thought about it.

First of all, could I use the BRRRR calculator strictly for analyzing flips as I have been doing and utilizing the "total profit if sold" section as a measure of my flip's results?

Is there anything I am not considering / missing? 

Does this look like a good deal? 

Would love to hear any and all feedback. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I did not. From my research I found that the LLC they're claiming is not registered on sun biz, their Facebook page reviews are all robots and when I went over to their office stated on their website, I was told that there's no such company doing business at that location.

Not saying that they are NOT legit but from what I researched, nothing seemed to add up, so I had to pass on them. 

@Greg Kasmer Thank you for your response. Sounds like it is definitely an option I'm willing to look into. What companies have you worked with on that?

Has any one ever used Limitless Funding Source?

They offer unsecure loans, not using any collateral. 

I'm exploring options and this seems like a good way for me to purchase the next deal but I'm treading lightly as using unsecure loans sounds pretty risky and of course I need to consider ALL things including their terms, market conditions, capital on hand (about 30k to invest) and my strategy which is to BRRR.

The goal is to acquire cash flowing rental property and scale as fast as possible. I can use hard money as well but I wanted to go below their minimum loan amount. I figure if I went with the unsecure loan I can purchase under that minimum loan amount that the HML requires (preserving my 30k in capital vs using it as a down payment). So I figured it was worth considering.

I would then refinance it into a DSCR 30 year fixed, pull the cash out and repeat the process similarly from thereon.

Even if you've never used this company (Limitless Funding Source) specifically, I'd like to hear about your experience in using unsecure loans to purchase rental properties.

I'd get with an attorney to confirm what your actual options are just so that if you do decide to let the man stay until the 15th, it doesn't backfire.

I'd be concerned with the fact that since the girl moved out already and HE was not on the lease, technically you should be doing your "move out inspection" to determine whether SHE gets the deposit back and because "time is of essence", you must return the deposit in a timely manner. (I believe it is 15 days to return the deposit if there's no claim and 30 days to give a written notice if there is a claim)

I would think that she is responsible though since she never notified you about him moving in.

I'd confirm that with an attorney though just to be safe.

They definitely don't appreciate like single family homes do but if you really want to invest in a condo and you find a "deal" that makes sense, go for it. I would definitely research the community and understand it as thoroughly as possible. Know what your responsibilities are as an owner vs what the community is responsible for. Ask questions like:

"When was the last special assessment?" 

"When was the last special assessment before that one?"

"Are there any upcoming projects in the works that may affect you with more fees in the future?" 

Consider the location, age of the community, turnover rate, rent to owner occupant ratio etc.

Just like any other investment. Do your due diligence, be conservative with your numbers and if it makes sense then go for it.

Currently in the middle of a refi on my duplex in South Carolina. I'm kicking myself because in October I had the chance to refi and could've got an interest rate at 3.75%. I didn't because the monthly payment "wasn't going to change much" and so I decided to stay put. Now, after realizing that I can use a conventional 5% down to buy my next property here in Jacksonville FL ONLY after I refinance this duplex (because it's on an FHA loan as primary residence and it would need to be moved to conventional in order for me to be able to use the 5% conventional as primary residence) I feel like MUST do it because the current reserves I have now + using a conventional 20% down would allow me to only purchase up to 150k and I'm just not liking what I'm seeing at that price range.

However with the refi, I can take out the cash and roll into my next property as well as use the 5% down conventional to house hack it. Only thing is the interest rate will definitely go up from 4.25% to a 5.15%, it’ll reset the term back to a 30year, and the monthly payment of course will go up about 30-50 dollars, also forgot to mention, taxes, which is unknown until all is said and done. 

What do you all think about this?

@Jonathan Greene thanks for your response. You’re right about that. So what would you suggest I consider if we proceed with this deal and future deals? Always analyze and keep expectations from an “as is” perspective? these may be dumb questions but I really am new to this and the market being the way it is I want to learn to how to navigate through it. All else is good. I’m in a position to buy, I’m qualified, got my down payment, got reserves etc. this would be my second house hack deal. 

@Basit Siddiqi yeah you’re right. That came out wrong. I don’t want to waste their or anybody’s time. Of course, I want a discount, who doesn’t? But I’m not going in expecting it.
I went in knowing that 190k is the absolute max I’ll pay. 
Now, my thing about the ceiling potentially having water damage and mold is what concerns me the most, that’s why I’m saying that after inspection it could be something I can use to get them to bring the price down. Just cause they said as is doesn’t mean I can’t request they fix something. And it doesn’t mean they won’t change their mind. My question is that if they DON’T, should that stop me from proceeding considering all the other improvements and that cash flow I calculated?