All Forum Posts by: Roxanne McClain

@Jacob Gelinas I know how you feel.

@Wayne Brooks ouch. $1000 a turnover?

@Wayne Brooks I am sure on my financing. That is not an issue. 

I've used all the calculators and the cap ex "looks" good for my area.  The homes where built to be rented and seem to be pretty maintenance friendly. 

Three of the four are stained concrete floors, wooden cabin feel walls and doors, and pretty cute vinyl homes on the outside with metal roofs. 3 different properties, 3 different sewer connections, the lot beside the last one is owned by the only other house on the road. The guy that built them is honest, and we where actually just talking about me looking for A rental property when he said "you should but mine" and 4 dropped on my plate. 

 The house on the street alone, not included. Its the one that scares me. 

The repairs came in at % based on what I have saw on bp calculators but I do realize they are alot lower than they actually will be or could be because this is 4 houses, not one. 

The tenants that are in these homes have been there a couple of years and he says they are all planning to stay in the homes and want to be sure I want the same.

@Greg H. The 3 properties are all listed on their own parcel of land and have their own meters, and run to the city sewer. I'll have to ask about the older home, it may be on a septic. Any thoughts?

@Geordy Rostad and @Jonathan Bombaci 

Thanks for your feedback. I have ran the numbers and the properties together do cash flow until I start putting all the what if's in place. If I run the bigger pockets calculator on the whole investment, all 4 houses at 200k and what each house is currently bringing in, it cash flows. But thats 4 houses, not each individual one. Some of them cash flow better than the others.

Total price is $200k for the 4.  Rents $2000 total between the 4, - P&I of 1150.00- $168.00 Insurance - 168 Property -Taxes= Cash Flow of $514.00 

When I start adding things in like 5% for vacancy - ($100) - 5% for Repairs ($100) That starts dropping the cash flow to around $300 month for all 4 properties. 

It will be my first rental experience, so it seems like I would want more of a "moat" between cash flow and the possibiliy of not having the cash flow.

I could probably get $an additional $25-50 month out of 3 of the properties, but I don't want to run off any long term tenants, because I am sure it would cost me a lot more to move a new renter in than to let them continue paying what they are now for a time. 

I don't want to go in as a money grubbing landlord. I want to turn a positive cash flow though. I feel like I could take this deal or walk away from it, but it seems like its a good way to jump into the Rentals. 

I have been looking to purchase my first rental property and have kind of drug my feet a little, but mainly because the market where I live is overpriced for rentals on the MLS listing.

I was talking to a contractor about going to look at one, and he told me I should look at his first. He has been trying to offload them from a note.

This is 4 houses total for $200k. 3 of the 4 are not even 10 years old, and they where built to be rentals. Nice little 3 bed 2 bath and one 2 bed 1 bath all stacked down the same street. No fences to have to upkeep, a basic deck on the back of them, all concrete stained floors, wooden cabin looking walls so no Sheetrock or paint to be done. Metal roofs.

The 4th house is older. And his original plan with it was to tear it down one day and build a nicer home and sell it.

All 4 are rented with long term renters, who he has a relationship of dropping by and collecting rent from.

If you run the numbers the properties all make a cash flow of around a combined $500 a month. So not that great, but in the positive. Rent could go up, but at the risk of loosing tenants I am sure.

I have already been approved by the bank with 15% down but I am worried about diving in head first into 4 properties as a single mom.

I dont have a history of real estate or rentals, but I would really love to work towards financial freedom you all speak of so much.

The 4th home is old and it’s kind of scares me with the unknowns, all the tenants being there before worries me as well.

And advise on making the decision to jump ship or grab the properties up? I have really been doing my homework on rentals, and it’s just kind of scary and I have froze..

@Shiloh Lundahl

Trade Education by far. Investing in my self took me from minimum wage nights and trade school days to business owner, and six figures over the course of 6 years.

A lot of people would say luck was involved, but it was also a lot of being prepared to meet the opportunity head on when it crossed my path.

I’m not pushing my kids to go to a 4 year school.

A free 2 years here in TN, and and trade like HVAC/Plumbing/Electrical is all they need to be miles ahead of the work force.

Trade School on the way. Return on investment is higher than any single stock I could have ever picked.

@Nicole West I’d love to hear how it goes with the meet. Please post updates.

I have an aquaintence that contracts. He’s got a good reputation, and seems reliable enough. He is limited as to how much he can have borrowed at a time, so we spoke briefly about a private loan.

We are talking about putting up the cash for a house build, that I would get back upon the sale. It would be paid back in full plus 10%.

Do any of you guys have a strategy you could or would share for me typical draw stages for a private loan and things I should be requesting for my personal protection?

The builders will surely make a good profit, but I’m not against that, I just want to be sure I am covered if I choose to pursue a venture with them.

It will all be formalized at an attorneys office, and I’ll be the Lien holder until payment in full is made. I don’t know what to anticipate going wrong, so any guidance would be great.

Thank you!