All Forum Posts by: Rick Dow

• We are closing on deals number 4-5 as buy and hold investors. Our current financing has been through our local credit union as portfolio loans. I would like to begin purchasing under conventional loans to provide protection from future interest rate increases. My question is this...Since we have been buying our properties under an LLC, are there any difficulties in doing that while getting a conventional loan. My local credit union acts as if that isnt an option since it will be under an LLC. Any thoughts/help would be appreciated.

Rick

We are looking to expand our buy and hold business into a different market. Considering the Port St Lucie area in Florida. We will be traveling to the area late next week and would like to meet with a good agent and possibly a reputable turn key provider. Any suggestions appreciated. Rick

Dawn,

You described the home and neighborhood to a tee!   My home has the paneling as well...unfortunately it has damage so I plan to replace with drywall.  I've been looking at the vinyl plank flooring as well.  Have you had good luck with it?

Thanks for the replies...great questions and comments!

Susan I will be closing on the property in a few weeks so only have current exterior pictures I can share.  The house is a 875 sq ft 3/1 with a 1 1/2 car garage.  Many of these homes were built on a slab, so unfortunately Melissa no hardwood floors and very little of the 50s charm.  The home is in fair shape, but I will be putting some sweat equity into this project, and with the help of family hope to complete it for @ 12-14 K.  This will include new shingles, Kitchen, Bath, additional outlets, recessed lighting, and new flooring.  The home also qualifies for a local energy program we have, which covers half of the cost of new doors and windows including installation.

The neighborhood is a modest/ blue collar with a low crime rate. Remodeled comps in the area are running 45-60K.  So with my 31K purchase price, plus remodel I should finish in the 43-45 range. My plan is to have a few extra amenities to differentiate from other rentals in the area without overbuilding.  The house is currently rented for 675/mo and my plan is to raise that to 700 after the remodel.  This is truly a cash flow play, as appreciation in the neighborhood and rural Midwest is weak.  I would love to find homes outside of this neighborhood in the future, but so far haven't found anything delivering this level of cash on cash return.   

I hope that gives you a good snapshot of this deal and a little insight into my thought process.  As I close and begin work I will post additional pictures.

Thanks again...Rick

Hello everyone....A little background before i get to my main question.  I am a new member to BP and am excited to be closing on my first deal in the next few weeks.  The house I chose is a 50's era, pre-fab manufactured house by the National Home company.  I plan to buy, remodel and refinance this property and plan to hold the property long term.  

I know these home often have non standard studs, very few outlets and no overhead lighting.  I plan to do a full remodel on the house.  Any suggestions/tips would be greatly appreciated.

Rick