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All Forum Posts by: Scott S.

Scott S. has started 6 posts and replied 9 times.

Post: SFR Buy & Hold #3 (SOLD)

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $15,000
Sale price: $80,000

3/2 SFR with shop sold in 2021.

Post: SFR Buy & Hold #2

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $1,000

3/2 SFR BRRRR that rents for $1050/mo.

Post: SFR Buy & Hold #1

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $92,000
Cash invested: $13,000

This is a 1350 sq. ft. SFR that rents for $1100/mo.

Hey guys... I don't want to hijack the OP's thread, but I do have some questions based on some of these responses. Specifically, this one from Nicholas L. Can you explain this, please? I'm in the middle of a BRRRR now (only need to cash out --- last R). I used a commercial loan to purchase the property and rehab. When you say "you pay off the loan you took out", do you mean pay off that loan by a refinance so you can cash out 75% of the equity to start another?  If not, can you explain?

Post: HELOC or Cash Out Refi. BRRRR Questions

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4
Thanks Scott.

Why would you recommend the HELOC? Are you saying go with the HELOC because it will allow me to keep the existing loan rate and that way I'll only have to get a higher rate on the amount of the HELOC?

I've got a 5 year balloon on the existing mortgage (commercial loan) that is 4.1% that will be due in 3 years, currently amortized over 20 years.

Post: HELOC or Cash Out Refi. BRRRR Questions

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

Maybe this question belongs on the BRRRR forum. In any case, I'm asking about financing AND BRRRR so I guess it could go in either place.

I have a rental unit (3BR/2BA) that I planned on doing a BRRRR with. I got it before it hit the MLS, purchased with a commercial note and financed the renovation out of pocket with me doing most of the work. I put somewhere between $9k and $10k in it and the ARV is probably in the $145k range. Long story short, I only owe $68k on this place, so I've got some equity in it. It cash flows nicely and I'm getting around $350/mo. net (after cap-x, and other expenses).

So there's the status.  Now, here's the question.

I understand the BRRRR method I need to get that extra equity out of it to purchase another and do it all over again. Won't getting that cash out just eliminate any positive cash flow I was able to pull out of this property?  I have quite a bit of equity in it, but I can't see getting another unit in this market at the same kind of deal I got on this unit.  

Also, I don't really know the benefits of HELOC vs cash out refi. Would you rather do one than the other?  If HELOC, how are payments made on that?

Thanks folks!

Post: Real Estate Agent Questions

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

To start, I'll say that I've used the same real estate agent for the past 5 transactions over 15 years or so.  He's a friend at this point and has started keeping an eye out and knows what I'm looking for.  Deals are hard to find in this market and he puts me on them as soon as he knows about them.

That said, I ended up looking at another property and had the listing agent show me the property.  I also know her.  She was glad to help and offered the property at the buyer's lowest acceptable offer, but I get the feeling that she believes that I'd use her as my buyer representation.  I doubt I'd get such a good deal on the place if I went through my real estate agent.

My question is to those of you who use real estate agents as buyers and those of you who are real estate agents.  Is it common for your clients to use multiple real estate agents (i.e. - not just you).  Those of you that utilize multiple real estate agents, do you have a reason to use more than one in the same market?  Benefits?

Post: Over Leveraged Purchasing New Property?

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

Mason, thanks - the answer is yes.  We are both currently employed and our combined income is enough to float the rentals for multiple months.

I know there could be big expenses, but I've got that in my CAPX budget as well.  So, that will come right off the top of any rental income.  Until CAPX gets built up sufficient to cover, we can/will cover it ourselves.  Problem is, she doesn't want to work it like that and wants rentals to cover themselves on day 1.  Not sure which is more unrealistic...

Post: Over Leveraged Purchasing New Property?

Scott S.Posted
  • Investor
  • Arkansas
  • Posts 9
  • Votes 4

Hi all!  I'm new to the forum and still learning in the investor side.

I wanted to ask a question on buying properties.  Mostly, I think I know the answer, but I'm having a hard time convincing my wife.  I just sold my first rental property.  I own another and I'm poised to renovate and turn it into a long-term rental investment.  The sale of the first property has been through a 3rd part intermediary via a 1031 exchange and I've got about 41 days left to identify new properties.  I've identified one property that we will likely officially "identify" in the 1031.  There's enough from the proceeds in the 1031 to purchase 2 properties, but my wife is concerned that we're over-leveraging ourselves.

So, I have 2 options.

1 - purchase 1 additional rental property with all the proceeds from the 1031.

2 - purchase 2 additional rental properties and split the proceeds from the 1031.

I understand you may need more details, and depending on your questions, I'll be glad to answer.  So, fire away!  Recommendations?  Need more detail?  Option 1?  Option 2?

Thanks in advance!