All Forum Posts by: Rigo V.

@John Warren how did you get the 80% ltv. I have been looking and can’t seem to find it 

I was listening to a podcast the other day and the guy talked about how he found a 6 unit and went to a commercial lender and ending up closing with 100% financing. I have always thought you need 25% min to close on a commercial loan. 

Can someone clarify? 

@Account Closed that's a fantastic idea! I might have to run with that one. Its a side by side duplex and the one tenants has a garden on their side which is fine so I think if I write it into the lease with a fence separating the sides it might be able to save me the expense in the long run. 

@Account Closed I can increase rents more but my numbers include an increase of $75 on a tenant that is currently under market. I am afraid if I raise it more that they will leave so I will slowly increase it to get it to market. The one thing that is hurting the numbers is the lawn service. Its on a .25 acre so biweekly mowing is eating into my number. I thought about having the tenants do it but I rather have a professional do it correctly the first time. 

@Account Closed thanks for replying. The purchase price is 110. I believe it will appraise for 160. I’ll put a loan on it for 112k and get all my cash out. At that point it will cashflow about 4K a year. 

@Ned Carey solid points. It’s in a b class area, solid school district. Met one of the tenants and they don’t seem to be a hassle to deal with. The other tenant I would place. 

I think the area would appreciate a bit and the I would basically own the property for no money into it since I’ll refi it all out. 

It’s my first deal and I’m afraid it may be too small. 

How much cashflow are you ok with? 

I am looking at a property duplex that would cashflow about 6k a year after piti and reserves (vacancy, capex and maintenance). Would be about 4k if I included property management but I plan to self manage. 

It would have enough equity to brrr it and would then cashflow only about 4K a year less with property management. 

Is this deal too light? 

@Mary M. insurance taxes are included in the mortgage line. 

Not sure why you think 499k is cheap when it wouldn’t cash flow with a mortgage if I bought it at 499

I was looking at a property that's on the MLS and has been sitting in the mid 400's for 550 days. I spoke to the realtor and he told me the place hasn't not been marketed much because he is in charge of selling the owners portfolio and the owner owns quite a bit including a successful restaurant in town. I asked if the seller would be willing to hold a note and he told me that he might consider it but that the owner has a 340K mortgage on it. Below are the financials. I am trying to figure out what creative ways I can use to get this property.

I was thinking I could offer 375K and pay him 20K upfront and 20K the following year which would be no hassle money for the seller. I would then begin to make changes at the property to increase the NOI and continue making the mortgage payments from the collected rents (would the title change? not sure how to make this work). I could then refi based on the new appraised value since I would have increased rents and lowered expenses and pay off the seller's mortgage with him keeping any difference.

Is this even possible? First time trying to do this.

anyone know where I can get a 30 year term on an 8plex?