All Forum Posts by: Scott Rosslow

 That has been its own struggle. I find most agents don't get or even care about the investing side. It would also be a different story if I was flush with cash. I know some people I can do some private financing / funding with. I am having a hard time finding a 'deal'

@Christopher Phillips

These were the number based off the listing I recieved. 

I am in the West Palm Beach area. I have been more focused this year with trying to get the first property under my belt. I analyze properties pretty regularly (my focus is on 2-4 unit multifamily). Every listing is quoting a 8-10 cap and when I put any expenses to it it quickly goes to a negative cashflow. After putting in all the numbers i run goal seek of a $100 a month cash flow (iterate to get lower taxes with the county tax appraiser) and it shows that my offer should be about $17k on properties listed for $400k. It seems ridiculous.

My expenses usually look like this:

• Taxes - tax appraiser calc at sale price
• Insurance - guestimation of my house and fiance's condo
• Mortgage (+mip) - 1.15% (of purchase price - down payment)/12
• Rental Eff - 11/12 * monthly income
• HOA -
• Utilities - (check for seperate meters in listing or not ~150-200 per unit)
• Lawn - 100-150ish
• CapX - roof sq ft times $6.00 (difficulty multiplier) / 30 years / 12 month ; # water heaters ; # HVAC ; # wall shakers ; Septic Tank pump out per 10 year
• Property management - 1/12 of monthly income
• Other - usually left blank

My Income is usually whats listed. Sometime I look via trulia for "comps." problem is the MLS program the photos rarely show up. Also most multifamilies never show interior pictures on listing.

Should I keep on trucking? Should I try a mail campaign? Should I offer 17k on a 400k listing (My agents I have talked too don't seem to get what I want to do, seem kind of un-responsive to me)? Are my expenses way off? Try a new market? stockpile money for the next dip (i want the experience more than staying out of the game waiting for a better deal)?

 I have my own and we both thought it was ridiculous, the only reason I am still intrigued is because maybe this has happened to everyone before me. Maybe if I go the extra mile it can pay off?

Thanks for the reply. I had my agent send over the 50% proof of funds. My dad has enough in other accounts to cover the 100%. I just thought it was weird they wanted to see 100%. I just really don't want to go 100% cash down (thats how my dad always invested) and its all his money. If I did that I am not sure how well I can refinance it.

Its listed as 5 units. It is two houses so I will need commercial financing which I honestly don't know much about. We talked about coming in on the deal together, I just don't want to end up keeping his money tied into it for very long. 

I have a weird feeling that them not wanting to show the property without 100% proof of funds has kept the property on the market for this long. 

I found a multifamily property that I want to buy and hold. The listing agent is requiring that 100% proof of funds for the asking price to show the property. I am partnering with my dad who gave me a bank statement with 50% of the asking price in the bank account. I don't think I can qualify for a loan for the half and I don't want to expose my dad to that much risk as its my first rental property. I would like to see the property to either know if I should adjust my offer or how else I might structure a deal.

We were looking into maybe use creating an LLC together and trying to get a mortgage for the LLC and him maintaining 51% control of it until I was able to cash him out.

Does anyone have any advice?

I used to listen to Dave in college. I am fortunate that I have no outstanding debt except a mortgage. I currently track spending with mint.com. I will look into YNAB.

My girlfriend and I are on different pages (working on that and its going well) with investing etc. I know I can't be too pushy either.

I listened to the recent pod cast about being frugal to save money. 

I fell into the rat-race like many before me with my first 'investment' house which i live in. I can cover the bills but the house is eating away at like 50% of my paychecks. I refinanced into a 2.75% 15 year loan to get rid of PMI but it increased my payments slight from the 30 yr FHA.

I have a bad habit that I am on the way to crushing of eating out for lunch 5 days a week. My first step to try to save is the cut out going out to lunch. which should save me roughly $200 month. I liked the idea of house hacking and started looking for a house that had a studio or duplex along with it. My girlfriend (who i am saving for a ring as well) isn't sure she wants to have renters on site.

I have long tossed around the idea of stopping my contributions to my 401k/roth to save to have cash for a deal. I contribute somewhere just less than 10% of what I make to my 401k (no matching). Should I skip on the 401k and add it to my savings?