All Forum Posts by: Ryan Halverson

I was running some numbers to determine how we can best structure a deal to keep our capital in place yet still have some cashflow. In the area I am looking most CAP rates are pretty thin, 6-7%. I was looking at rates and came up with an idea of funding the purchase using a 5/1 ARM with 5% down instead of 30yr fixed with 25% or 5% down. By using a 5% down with an ARM we still see some cashflow while freeing up enough capital to purchase 5 properties instead of 1. My CoC ROI would be much higher as well, thoughts?

Not a new member but I did leave the site for awhile to pursue career options while we saved capital and moved to a new area.  Looking forward to making some connections in the North Atlanta area, Alpharetta.  In fact we are looking (again) for a 4plex.  Good luck to everyone on their deals!

Ryan H.

Here are the numbers I ran on it.

I would say no thank you. If you decide to knock off PM fees or maintenance you would really corner yourself into not being able to pickup one later with ~$94/door/month. I try to aim for 175-200+ per door per month especially for MFH.

@Trey Leigh I looked at a few properties in the area to guesstimate the numbers. With the number you provided you are looking at about $170/month with 100% finance @ 6%. Much lower but I also assume you aren't doing 100% financing. 20% down gives 225/month with a 12% cap rate.

Here is my analysis.

Even at the low end of the rent range you will make a decent property and I would go for it. The only exception is the HVAC/roof; if these items are half or less of their expected manufacturer lifespan it would be worth it. If you have to replace all them to get it rented it would break just above even for the first several years to recoup this expense.

@Trey Leigh I would hold this property. Even if it was just for the time being. If it is in an 8+ school system (according to www.greatschools.org ) it should appreciated at a premium. This will allow you to raise rent each year. Here is my analysis:

So even with all expenses included you are netting over $250/month. This should be a great investment if all the numbers are true.

My fiancée and I had our offer accepted on our first property.

We have been dealing with 1 mortgage officer but the rates are not adding up compared to other rates we have found. So I guess we need some help/input if anyone knows.

163k
VA loan w/0 down
4.375% Interest
no points
P/I =789.77
Est. Closing=2320.72
Total cash from borrower?=9970.59
Credit=Excellent

Any input or advice is greatly appreciated :) Happy New Years BP!

Craig Hansen yea you can download it here http://www.biggerpockets.com/files/user/RHalverson/file/mf-rei-analyzer-v2

From my understanding since it is not a first home or a hardship situation you would be taxed 10% no matter what.

Shawn Thom - yeah you are probably right. Just figured I would throw it out there.