All Forum Posts by: Chris S.

@Wayne Brooks  Thanks Wayne.  That shed some light on the situation..

I'm going to look at a short sale.  They gave a preapproved number.  It's a pretty good deal as is.  Should I offer 10 - 15% lower than asking?  It's been around for a while and I don't think there are any other interested parties. 

Does this add a lot more time to the process?

I'm not really experienced with short sales, so any advice with anything on a short sale would be awesome.  Thanks!

@Dawn Anastasi I think I could refinance it?  I've never done a hard money/private money loan before or this type of financing.. 

I'm going to get it inspected and I'll probably even get it appraised before hand along w/ having a walk through w/ a contractor.  If all checks out, I'll pull the trigger.  It should at least appraise at the purchase price (even if for some really weird reason it appraised at less after rehab, I should be able to refinance it for the majority of the purchase price)..

Are there any techniques that you know of where I could lock a refinance in place before I move forward w/ the property?

Thanks for any help!  Chris

Hey everyone, this will be my 2nd buy and hold, but it's my 1st time rehabbing (my 1st buy and hold was a new townhouse that I didn't have to put any work in to).  I have a property I'm interested in.  

The bank approved the number $115,000. 

I believe the ARV will be around $160,000.

It seems like it's going to be 15,000 to 20,000 in rehab. 

I'm comfortable with putting around $75,000 of my own cash in.

Question: Should I get a hard money (or private money) loan for the difference (plus rehab), rehab it, then refinance it at 80% LTV w/ a conventional loan?  

I would do this to keep cash in hand and get a better COC return. (Right now I have 2 mortgages, 1 primary and 1 buy and hold). I believe it won't be hard for me to secure a loan w/ my credit and income.

Any help would be awesome! Thanks..

@Hai Loc  Thanks for the advice!

Thanks @Jon Holdman !  I really appreciate it!

@Joe Villeneuve  thanks for the response!

@Thomas Merrifield  Ah ok.. thanks for the info anyway..

Fyi, the "?" in the statement above is supposed to be the infinity symbol.. ha.  Thanks!

I was thinking it would be awesome to do something like buy distressed, fix and instead of flipping for a profit, take a mortgage and hold where the cash on cash return would be closer to ? .

Hey guys, thanks for the info.  I was thinking it would be awesome to do something like buy distressed, fix and instead of flipping for a profit, take a mortgage and hold where the cash on cash return would be closer to ? .  Does that make sense to you?

@Joe Villeneuve  is this similar to the system you're talking about for your 100%+ cash on cash return?  Just guessing at this point.. Thanks!

@Franklin Romine thanks for the input

@Larry Turowski  so Larry, just to clarify, if you use a 20% down payment on a mortgage, you're looking for a minimum of 40% cash on cash return? Thanks for the advice..

@Karen M.  thanks Karen

@Thomas Merrifield thanks for the input.  I'm kind of looking to stay around here with properties 2, 3 and 4.  Is the company in PA perhaps?  ha.  With property managers, do you find it's an issue investing in real estate outside your state?

Thanks for the advice everyone!

Hey guys, quick question for a buy and hold.

If you had $100,000 cash, after buying properties, how much would you expect to produce with that per year? For example,  25% cash on cash return? 

I'd imagine that the more you know, the better cash on cash return you could get.

Is there a difference in cash on cash return if you start out with $10,000 vs $100,000?

I'm really just looking at what to expect from real estate and any ideas, advice you can give on buy and holds.

Thanks for your help on this!