All Forum Posts by: Bobby Paquette

Hello everyone,  Im currently working overseas and would like to get my first investment property.  What are some good resources to start with short term and vacation rentals ( long distance friendly)

Thank you,

KW

@Bobby Paquette I purchased a 3/1 for $99,000. It was only supposed to need about $15,000 renovation. Once we got into the renovation we discovered the inspector missed all sorts of things and the renovation cost about $50,000. Took a year to complete. Got a set of tenants in for $1600 + utilities.

The pandemic happened and prices went crazy here. The value of the 3/1 home went up to $349,000.

Had another property need an extensive renovation. Completed the BRRRR process on the 3/1 and took out $150,000 which was the maximum amount the rent would properly support. It still cash flows $250/month plus all bills and reserves.

Ended up not being able to find a contractor to complete the renovation to the other property which was a duplex only cash flowing $600/month in time for my insurance company to not drop my coverage and sold it.

Used the $150,000 to buy an 8 unit that cash flows $4000 /month curr

Damn, those are some good numbers! 

@Bobby Paquette- So my fixed costs are the $250 / mo interest payment, $116 / mo in property taxes, $105 / mo in insurance, and $98 / mo in property management, which totals $569.  

$1,225 rent - $569 fixed costs = $656 / mo cash flow before vacancy, repairs, ect. 

 Jobless claims. We invest in distressed debt and jobs is the #1 factor on people's ability to pay their mortgage. 

2/2 on the Jobless Claims!

Jobless claims. 

Reason being, not sure how reliable the unemployment data is. I am mainly curious to see if/how joblessness/unemployment will impact RE inventory.

Looking forward to the other input on the thread.

Great question, @Bobby Paquette!

@Bobby Paquette- This isn't a traditional BRRRR by any means, but I'll share anyways.

Purchase price: $109k

Tenant-occupied at purchase paying $950 / month

Financed with: securities-backed line of credit @ 2.49% interest-only fixed for 7 years

Monthly interest payment: $250 / month

A year after purchase, a drunk driver drove into the property, causing $107k worth of damage.

Luckily, no one was hurt and the insurance covered all damages.

The existing tenant moved out.

After the insurance-funded rehab, the property was worth $160k.

New tenant moved in at $1225 / month.

I haven't refinanced out of the line of credit financing because I'm hanging on to the 2.49% fixed rate.

This was in Independence, MO.

Hello all, I just closed on my first fixer upper single family home last week and am planning exit strategy B. Strategy A has been to sell this house when its finished then invest in a rental in a "better" location - ideally a duplex if I can find the right one. But I also wanted to consider keeping this home as a rental as it could work both ways.

I purchased this home with hard money through my LLC, and I'm thinking a DSCR loan might be a good option if I am going to refinance out of the HML. I can go into details about the flip if anyone is interested in that since I am pretty new, but I'm also trying to figure out how I go about finding a good broker for the DSCR loan so I can assess all options. What is the best way to go about doing that? From what I have gathered through posts, it sounds like using a broker might be a good idea for where I am at right now. Any tips, tricks?