All Forum Posts by: Scott MacArthur

I've used WPC vinyl flooring on my last 2 rentals.  Been very happy with it.  Here's some info about it...

https://www.bestlaminate.com/help/about-wpc-vinyl-flooring/

@Rocky V. Thanks for the reply.  I'm in the same boat with mine, taxes are getting up there but hate to liquidate them as they still cash flow well and will always bring premium rents due to their location.

@Rocky V.  Thanks for sharing.  I've seen some insane deals lately that are being purchased with similar numbers.  It's comical.  What's your experience been like with the < $800/month tenant base?  I'm assuming these deals may be in a tertiary market as well?  I've had reservations about the quality of that tenant base but it's a limitation that I probably need to venture out and test myself.  My current holds are all $1200-$1800 but we all know those are getting hard to buy to make the numbers work.  Appreciate any insight to your personal experiences with it.  Congrats on the deals!

David, if you want to be conservative on the tax number you can use the market value x 3% as a quick calculation. Most total tax rates in the area are between 2.3% - 3%. Also, be careful using the unexempt taxes from the MLS listings. That is based on the prior year's valuation. If you buy the property for less than the tax appraised value you can typically protest it and get it down to purchase price the first year but plan on that going up closer to market value in the coming years. That's why it is always good to base it off of market value, not what you pay for it.

If you need to drill down on the taxes for a certain area or a certain property let me know, I can send you the breakdown.

Also, I'll try to attached a chart that has the combined tax rates as of 2017.  I don't have 2018 yet.  Hope that helps!

Here is a link to the Delayed Financing rules for anyone that wants to look at it.   Make sure you take a look at the eligibility matrix on the page as well.

https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html

I have used this 3 times and it works great as long as you know the rules going in.

Question, what LTV are you seeing for HELOCs on an investment property? Most big banks are at 60% LTV but I've heard some smaller regionals will do 70%-75%? Anyone have success with a 70%+ one?

Great discussion and love reading all these opinions. I'm under 50% LTV on a few properties now and it gets me thinking about this topic often. I've thought about paying one of these off to free up an additional $600/mth cash flow. I owe 58K. I see that as returning 12% on the 58K I have sitting in a bank account doing nothing. It would also give me a 175K free and clear property where I can get a HELOC if needed to redeploy into other property investments at a decent rate.

What would you do?

And that is how it is done, perfectly executed!  Congrats man!  It gets exciting when you do a few more of these and your equity and cash flow start to really grow each month, all for little or nothing out of pocket.  Keep up the good work!

This is a great thread so wanted to update it and say we are definitely experiencing some cooling off in the luxury markets (600K-1MM) in the DFW area.  Inventory, price reductions, and DOM are all on the increase month over month and YoY. This is the price point/location the last recession started to rear it's head here.  Also, most of your new construction is in this range as well since land prices have soared causing builders to build larger homes to make the profit margins they need.  What's going on in your markets the last 90 days or so?

@Guillaume D. Thanks for the reply, that's how I've done my single family rentals and it's worked out great.  Need to get some multi's done the same way.

Congrats on taking action and your success with these deals.  How are you handling management on these units?  I've passed on some 8-16 unit deals that were between a 30min to 1 hour drive out because they were too small for a manager and just a bit too far out to self manage like I would want to.  Just curious how you are structuring that aspect.  Keep it going and good luck on the 8-plex!