All Forum Posts by: Ryan Cartier

I just put a property under contract that I was going to flip. After looking at some info on cash out refinancing, I am now considering this as it would be a strong rental in a great area.

My situation:

This would be my 3rd  buy and hold...1 rental, 1 rv storage yard and this property.

I have used a heloc for the 20% on each property but now if I hold this one traditionally my cash would not be enough to do another deal.

I have flipped 1 house earlier this year with the intention of doing a few more to draw the heloc down to nothing by end of next year.

If I do a cash out on this one I may not be able to pull all of my initial 20%/rehab out, but would be covering the notes/expenses and cash flowing some each month with a long term asset. So in essence I would still be adding to the heloc.

I can flip it and clear 30k to pay down the heloc as planned, but lose a potentially good rental property.

I am conflicted....flip or plan as cash out.

I also have another rental that I could do a cash out and reduce some on my heloc(interest only) and still cover note/expenses.

I do not like the idea of a balance on a heloc since it is interest only and is currently up to 6.5%

Cash out and reduce some of the 6.5% interest only to a fixed 4.77% and paying down with each payment.

Sure....

FLIP
Purchase Price	$ 239,000.00
Fees	$ 1,500.00
**Seller Paying $5000 towards closing
$ 240,500.00
Repairs	$ 32,000.00
Total In	$ 272,500.00
ARV	$ 335,400.00
Realtor & Holding Costs (10%)	$ 33,540.00
Clear	$ 29,360.00

BRRR
Purchase Price	$ 239,000.00
Fees	$ 1,500.00
**Seller Paying $5000 towards closing
$ 240,500.00
Repairs	$ 32,000.00
Total In	$ 272,500.00
ARV	$ 335,400.00
Cash Out (80%)	$ 268,320.00
Mortgage	$ 1,752.00
Insurance	$ 158.33
Taxes	$ 208.33
Monthly Expense	$ 2,118.67
Rent	$ 2,400.00
Monthly Cashflow	$ 281.33
Yearly	$ 3,376.00

Hope this makes sense.

I am somewhat in a similar boat...Have 2 rentals and have completed 1 flip with positive results. My 2 rentals have eaten up my cash in a heloc which is interest only. 

I just put a property under contract with the intent to flip and clear about 30k when complete. However, due to its location and the potential for a premium rent I am now considering the brrrr method(which I am trying to study feverishly right now!)

I can purchase, rehab and refi and still cash flow approx $500/mo and will then have a cash flowing property and no $$$ add to the heloc, but still not paying it down either.

I am looking at 2 very similar sfh properties right now and will hopefully end up purchasing one of them. 

They are both approximately the same sqft but one is in a better neighborhood and will appreciate more...the other is in a rental neighborhood area but will give me more cashflow. 

Shouldn't have any issue renting 100% for either one

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I have been on this forum for about 3 months now trying to learn as much as I can. I am looking at making my first sfr buy and hold and have a few questions still unanswered.

I will be using a HELOC to make my 20% down payment on a 200K sfr (ARV of 225K). I am anticipating a monthly cashflow of approx $200.

I am trying to figure out how to pay off my heloc within the 5 year interest only period so I can use the $$$ to put down on another rental.

Is this where I would try to refinance the entire price of the new home?

I have attached the evaluation I used for this property.

Evaluation

I keep playing with multiple house calculations. When running an eval should I be more focused on the Cash ROI or Total ROI.

It appears that I can get a positive cash flow in the $200/month range but my Cash ROI is approx 4% so I keep thinking that it is a waste of cash???

Any help is appreciated

New to this site and REI. I am looking for my 1st property and have a family member that I am trying to work a deal with. The price for the property is very fair and almost certain to rent 100% in this location. I am looking for a good cash flow for a long term hold.I have included a link to Brandon Turners calculator that I have used to evaluate this.

Evaluation

Looking for any suggestions, stories, etc...

I currently own my primary home free and clear. I am considering using a heloc to provide the down pmt for a rental.

My plan is to buy 1 rental by the end of this year and have 3 by the end of 2018. I am trying to see the best route for me to leverage the properties and finance as I go along. I obviously would like to get to the point where I have my heloc at 0 and out of the picture.

Running a detailed analysis from this site, I should cashflow $300/month on a 200k home including the heloc payments.

Any advice is welcomed.

My father in law has earned a rental for approx 35 years. He is a high income earner and is considering selling it. He is questioning selling it due to depreciation and tax implications. I am looking into purchasing my first rental and thought with some creative ideas this could be a good one to try and make work. It is rented 100% Rather than him selling outright, and him owning with no mortgage on it...would a subject to ownership agreement be a good idea. We would pay him as an owner financed and assume the maintenance and headaches of the property. Looking for creative suggestions!