All Forum Posts by: Sid Newstrom

Thanks for the encouragement!  If I could ask you a question. My first was a flip, this will be a buy and hold... How long did it take you between deals where you felt comfortable with the leverage? I feel that It will be a couple years to make another deal and still keep debt ratios in line so I am just trying to get a feel at how fast the buy and hold game can grow. I realize every situation is different but just trying to set some realistic goals.

Thanks,

Good Evening every one,

Closing in a week on the flip. for the Numbers (look at other post). :) Not bad for my first one... but anyways... I am going to use a 1031 and have a PA for a duplex. not much needed a little paint and clean in the lower unit, upper unit rented to a long time renter. I live really close to this one which is nice as I will manage. It is also in a great part of town. I know the cap and COC are not great but for my first buy and hold this should work. any input is appreciated.

rent currently 710, will raise to 775

each unit 2 bed one bath,

25% down and closing 42,625

121,875 @4.5% = 617.52

gross= 18600

vacancy 6% =1116

1500= water, sewer, garbage,

600= maintenance

2960= tax

COC 9.42

Cap 6.94

TROI 21.26

DSCR 154%

GRM 8.7

Thanks everyone

SOLD !!!!! Days on Market 0. set to close in august. After it's all done and said roughly 92,500 in and sold for 123,500. Less realtor fees of 5% for a profit of 24,850 (give or take, as not all the numbers are absolute (IE still have to return product and have a survey) and the check isn't in the bank)

Thanks everyone for the advice and the confidence.

Just a quick update. We are a little behind as I wanted this to come to market by the 1 of June and I have about 2 weeks to go. Good news is my neighbor just sold in 3 days for 121,600'. After holding cost and reno's I will have a total of 74K plus closing for 2800, and 12,196 in, for a total of 88,996. assuming 6% for agent and a sale of 120,000 min. total profit 23,804 + I will update once this puppy has sold. wish me luck.

I do have an RE agent that I really like but before I disclose this is it possible to have him work on everything and compensate him outside of the deal?

Well... As we speak my wife is closing on our first rental !! But a new prospect has come into light. I just talked to an investor who has more than 20 properties and wants to liquidate. NO seller agents.... Somehow I just fell into this, and I really want to capitalize on it as many of them look cherry, with 20 and 30% cash return. So my question is... How do I best capitalize on this? I am really green and looking for the best way to make money on this opportunity. I can probably finance two at best without outside help but it seems like I could do more with this information. Do I want a buyer agent (used on my first and only deal). should I get a real estate attorney? Can I build a deal to give this opportunity to an agent. Like I said I am very new to this but I can feel the potential so any ideas, opinions, or advice would be greatly appreciated.

Thanks in advance,

Frank you are exactly right. if i pull out the capital I would us it to finance another deal but the ratios would be off. I think this could be offset with other properties in the future as the next one should be able to help average out the cash flow etc. On the other hand with an extra 24k or so from a flip I could move on to more projects... I think my biggest hang up right now is that deals in my area are hard to find.

My aim right now is growth which tips me to the flip, however it might take another 6 months to find a good deal . This bring up another question. If the ratios are not as good but I can use this method to buy 3 or 4 quickly should I do that to take advantage of the low current rates and pending inflation (a little blue sky I realize) or should one always go with the immediate hard data even if the potential opportunity cost may be large in the future. Thanks for the info I will take some pics when I get back to town.

Good Morning,

I have just Purchased my first buy and hold rental.

I purchased it for 74k with 30% down on a 5% balloon (this is acting like a bridge loan as I plan to refi in 2 months). The Property looks to need roughly 10k in repairs and can rent for 900 mo. Right now I plan to refi after reno. In doing so I can pull out nearly all of the injected cash if I choose as the appraisal came in at 105k before repairs and comps three doors down on either side have sold for 117,000 and one on the market now at 123k. SO.... After looking at the numbers a quick fix and flip doesn't look so bad either. Any suggestions as to what would be a better choice? I plan to hold but the quick potential cash looks pretty good too.

Hello everyone,

I am looking at a condo 2bd 2 bth 1440 sq. ft.

120,000 purchase price

20 % down 30yr (515.35 month)

125 hoa month includes garbage, water, sewer, and lawn care.

200 annual for pool (optional)

500 insurance

Rent at 1050 plus hoa

This is in a great neighborhood

any comments would be great. This has just been renovated.

There is also a sfh for 120,000 in a good neighbor hood but would need about 15,000 in updates. I am trying to compare the two and so far insurance and ease of care seem to be the big question marks.

any input greatly appreciated

thanks

Thanks Bill