All Forum Posts by: Rudy Figueroa

Hello fellow investors,

I recently found a 4-plex in my neck of the woods on the MLS and a not too unreasonable price. I managed to get a hold of the documents the seller has made available (with estimates indicating at least $56k of deferred maintenance) and am ready to make an offer which includes seller financing.

I have considered requesting dual agency from listing agent but not convinced I'd be best represented. Can anyone recommend someone in southern Bay Area who is comfortable negotiating seller financed deals? Really appreciate everyone's feedback. Thanks in advance!

@Franklin Romine

 Any reading material/advice on managing rentals/landlording from afar? Definitely a route I wouldn't mind going if the cash flow justifies it. Thanks!

@Franklin Romine

No property yet. I'm trying to get insight in all the details to try to make sure I don't stumble too hard on my first property. I'm currently looking at pre-forclosures and REO properties in my area as the current market values of 3/1 and 3/2 SFRs (most popular rentals in Hollister) would lead to significant negative cash flow. Average price 3/2 falls between $340k to $450k but rents are only $1800 to $2400 per month. Any advice you might have would be greatly appreciated.

Hi everyone,

I'm working on gathering all the indignation and knowledge I need to use the BRRRR Strategy on my first rental purchase and wanted to see where you all are finding success when refinancing.

-What mortgage term are you using for the refi?

-What APR are you encountering on a non-owner occupied property?

-How long are you waiting after purchase to refi?

-What are the biggest obstacles you have faced?

Looking forward to reading the responses I get!

@Kyle J. That's really good to know! Thanks for that.

That was the original idea. The incoming rent (assuming it rents right after rehab) would then have to cover the holding costs until I can do a cash out refi. Or is there a better strategy to defray holding costs?

@Mark Nolan I just tried looking for active members near me using Bigger Pocket's Meet page. Not too many but looking forward to making those connections.

Hi Everyone,

After listening to as many webinars and podcasts as I could fit into each day for a month, I have begun trying to find my niche and analyze my market. I want to start with SFRs before moving into small multi-family properties. My goal is to own 40 doors at minimum $200/month/door cash flow. (Is this too aggressive?)

I would like to follow the BRRRR strategy and am able to put in $15k-$20k in rehab costs (my skin in the game). I would take out a hard money loan of the purchase price and purchase/holding/refi costs for a 3 month rehab. Below is my analysis:

Assumptions:

3/2 rents for $1900 (varies between $1800-$2300 depending on location/lot size)

3/2 ARV $300K (low end of market)

Hard money purchase @ 11%, 4 points

3 month rehab

Purchase/Holding/refi costs ~ $20k

Refi @ 7% 30year

Yearly operating cost $6000 (includes property taxes)

Unit is rented out immediately at completion of rehab

Numbers after purchase:

Rent: $1900

Average operating expenses: $500

Minimum cash flow: $200

Left over for Mortgage: $1200

Refi max: $180k

LTV: 60%

Numbers for purchase:

Hard money max: $160K

Rehab: $20k (out of pocket)

Purchase/Holding/refi costs: $20k

Max offer: $140k <----------

Purchase price to ARV: 46.7%

How do my numbers look? Am I being too conservative? Is there anything I'm missing?All the help is really appreciated Thanks!

Thanks for walking us through that! I agree with Aaron and love to see threads remain active up to the conclusion. Thanks again.

Hey Ben,

How'd it go with the deal? Did you decide to wait for auction or track did down the heirs?

-Rudy

Hi everyone,

After lurking through the forums and BP YouTube channel for the last couple weeks, I finally decided to join the community.  I've been interested in real estate investing since my early 20's but always believed it to be out of reach because I lacked a large amount of capital to invest. Listening to the podcasts and webinars and reading through the blogs and forum have opened my eyes to the different opportunities available.

Through BP I hope to find others in the area that I can learn from and connect with since I would be starting off this endeavor only part-time (I average 55-60 hrs at my FT job). I have set a small short term goal of purchasing my first rental property by January '16 (I'm still trying to sell the whole idea of REI to my wife). Really looking forward to being apart of the community to help make this happen.

-Rudy