All Forum Posts by: Sameer Kh

Hello Fellow BP Friends

The seller is asking for a non refundable escrow deposit of 3k as they feel we will try to wholesale and it may not work out. 

I have full intent of purchasing the deal if the inspection and appraisal goes well. How do I strategize the deal?

Thanks 

Thank you for your response and help 

Hello Fellow BP Friends,

I have a full gut down property under contract and i pretty much am going to pay for the land. Do I need to order any specific inspection as a part of my due diligence to make sure I am not buying a bad land.

The property is in a flood zone and will need flood insurance.

 Hey Brad, Great to meet you and glad that you are thinking along the same lines I am. Good info on the experience of you inlaws. 

Thank you Greg. You bring up a good point on the role of the equity and how leverage can accelerate wealth creation.

Hello Fellow Bigger Pockets Friends,

I have been analyzing various models (already took action and bought investment property) to get to my freedom number i.e. monthly passive income goal to replace my expenses and maintain lifestyle. Before I took the plunge, I was all in stocks and with my new interest RE I am planning to shift more aggressively towards RE porfolio but still not sure on the long term outcome. 

My goal is to be at FI stage with 4% withdrawal rate in 10-12 years. I would prefer to do passive buy and holds as I have full time job so right now I don't have time for flips/wholesale. 

Here are few options I am considering:

1. Stocks: Continue investing in stocks and reach my goal in 13.5 (70-30 portfolio)

Upside: Simple and easy to do

Downside: unpredictable economy, not able to capitalize on tax benefits, missing out on higher growth

2. Buy and payoff rentals quickly: Buy 10 rentals and pay them off in 10 years (as per my calculation this would actually take 20 years instead of 10). Plus, it will not give me the same COC return as I would if I use leverage and let renters payoff mortgage balance.

Upside: Free and clear property, tax benefits, stable income

Downside: takes 20 years instead of 10, COC return is much lower,

3. Buy and hold using leverage: Buy 25 properties (2-3 each year for 10 years) and let renters payoff mortgage.

Upside: High COC return, tax benefits, stable income, mortgage interest deductions

Downside: not sure how I will continue to finance 25 buy and holds (I started with convention loan which stops at 6 properties), mortgage looming over my head for long term,

So I have a three part question:

1. Am I thinking this correctly?

2. What is the best strategy or technique from above or anywhere on BP or your experience to get me to my goal in 10 years?

3. How can I reach my goal much faster?

Thank you again

Best

 Hmm I am not sure if this particular deal being good or bad had anything  to do with my FI goal with RE. My goal is to have income to meet my FI through RE. 

Hello Fellow BP Members,

I am about to close on this deal but wanted to check if this is a good one.

Loan 104k

down payment = 20%

Interest rate = 4.75

The property is fully rehabbed by investor including new roof, hvac, foundation levelled, new tiles, bathroom updated, new  carpet, new  appliances. 

ARV is same as purchase price as per final appraisal.

Loan status = approved for a non recourse loan.

PITI = 765 per mo

HOA = 35 per month

Property will have a guaranteed rent for 12 months of 1175 (similar properties renting for 1100-1200 in the area )

After capex, future repairs deduction I will be cash flowing 140-160

Market is growing fast.

Should I close on this deal

Thanks again as always 

hello fellow BP fans,

I am about to close on my first Turnkey rental. The Turnkey / property management company I am working with is well known in my area and reputable

The company owner is doing his own home inspection using a third party real estate inspector now since he has finished the rehab. 

My question is should I order my own inspection or should I rely on his inspectors reports?

Thank you

Sameer

Thank you all for your answers and help. Much appreciated.