All Forum Posts by: Travis Beehler

In what had begun last holiday season with me giving away a duplex to a deserving BP member, I want to carry on the tradition..

This year I have a SFR in St. Louis it is in need of rehab.. However it can be a great starter project for someone...

No strings attached I only ask that once you get it up and running a small portion of the rent goes to charity for the first 3 years that you own it..

The qualifying individual or couple will simply need to proof funds that they have the ability to pay cash to rehab it... I don't want someone just taking it from me and flipping it.. Wholesalers not welcome LOL...

I also want who ever I give it to ... to chronicle the rehab for the audience here on BP.. as a form of learning and entertainment..

please respond on this thread.. Last year it took me about 30 days to choose who I gave the duplex to.. and I am happy to report its been fully rehabbed and is up and running creating 1,200 a month for the couple who ended up with it.. and a nice portion going to their charity of choice.. ( which if I recall was a women's center).

Ok there ya go in the spirit of the holidays  a way for me to give back to BP community that I really like and the awesome owners of the site..  @mindyjensen

@Vernard Kennedy you can buy a portfolio of properties in Rochester, NY which have cap rates in the 16 to 20% range.  If you accumulate an aggregate net operating income in the $50k range and place a mortgage on it for 80%ltv, you will achieve your goal and cash flow in the $2500 a month range.  Do you have $60k-$70k to work with?

PM me if want to discuss ideas if you are considering Rochester.  I am an investor and broker here but I play in the lower cash flow properties.

@Travis Beehler Correct - thanks to Cook County taxes.  Nearby towns of Whiting and Hammond, IN offer some interesting deals with lower taxes.

I'm researching markets and Chicago has the best numbers I've seen so far.

I personally used a HELOC to fund some investments myself and it's a great way to do so. The 3 day period of rescission should only be used if you wish to close the HELOC line and not re-open it. You can certainly open the line and draw on it when you wish. Some banks will charge a maintenance fee of sorts if you don't draw on it during the whole year, but usually nothing crazy. My bank doesn't charge any fees for having a zero balance.

The good thing about having the HELOC handy is now you have capital to work with. My bank even suggested I pull the money out and store it in a money market account with a higher interest rate. In doing this, it would make the funds immediately available for purchasing a deal, plus it would offset the interest being charged on the HELOC itself in effect lowering your given rate by allowing you to earn interest on that money you just pulled out. The interest only payments on the HELOC are typically tax deductible too so all in all it puts you in a good spot if you have high cash flowing properties you're eyeing.