All Forum Posts by: Ryan Faber

There are some exceptions to that 1 year requirement, such as relocating more than 100 miles because of work, change in family situation to name a couple.

My suggestion would be to talk to your lender, explain what you would like to do and see what options they can come up with.

@Joshua Hittinger the "waiting period" depends on what type of financing you get.

If you finance something as your primary residence with a conventional mortgage, then you are typically required to occupy it for 1 year. If you finance in that way and promptly move out and use it as a rental, that would be mortgage fraud I believe...

@Jonathan Boyd

I haven't figured out how to view the event details on the app, but if you open it in your browser you can see the details of time, place, etc.

@Jonathan Boyd

I think the address is:

1286 N Corsica Dr Fayetteville, Arkansas 72704

@Kendrick Salazar, I had Rocket Mortgage give me a quote last month in a home and they were a full 0.5% higher on their rate then several local lenders.

Thank you to everyone for your feedback. It's a no deal for me.

@Anna Buffkin to make sure I understand, your saying it would be wise to estimate 15% for repairs AND 5% or so for capex?

@Kevin S. @Todd, thanks for your feedback. What type of deals are you seeing in the Tulsa area?

@Jaysen Medhurst, thanks for the input. I think you're probably right. If I were to leave $20k in the deal instead of pulling it all out, I could get to $100+, but if I'm estimating expenses low already, that would get eaten up quick.

I'm lookiong to get some more seasoned eyes on my analysis and feedback on points I may be missing or assumptions that may be off. This is my first investment property. The property is one side (half) of a duplex in Tulsa, Ok. It's a bank owned property and was an owner-occupied foreclosure. Most duplexes I've seen aren't owned separately, so that is interesting to me...

Here are the details:

1156 sq ft

2 bed/2 bath

Purchase price ~71,000 including closing costs

Needs $7-9,000 to get it rent ready, so we'll round up to an all in price of ~$80,000. 

ARV ~$100,000 (I wonder about this as I imagine the demand isn't super high for half of a duplex...thoughts?)

The other side of the duplex is rented out for $800/month and I think this would be right around that price. Could probably get $850.

Assumptions:

Insurance $600 (I have a couple quotes at this number)

Leasing fee $595 (have a quote for this)

Management fee 10% monthly rent

Repairs 5% of PGI

CapEx 5% of PGI

Taxes $1,027 (last year)

Analysis

I've analyzed the deal with an all cash purchase and I would be looking at returns of about 6.8% CoC before tax and 5.5% CoC after tax.

However, if I were to finance the deal after repairs at 5% with a 75% LTV (i.e. pull out 75,000 of the 80,000 I put into it), my returns would bump up from a % standpoint, but the monthly CF would be pretty small (although at that point I would only have $5k invested).

What am I missing? What's the general thoughts out there on if this deal is worth it?

(keywords: Tulsa Broken Arrow Owasso Oklahoma duplex)