All Forum Posts by: Scott S.

I see the negative cashflow as well, using your 100% financed number. That's an interesting way of doing it. When I run numbers on a property I include the down payment but try to see if it still cashflows at an interest rate almost 2 points higher than market (so instead of 5%, I use 7%).

With 15% down you'd get a monthly P&I payment of $4,697 - that starts to look positive.

My understanding is that you need to reside in the property for "a year and a day" to meet the requirement, not two years or more. You can identify the property and begin the purchase process while still in first place, just like you can start to look for a new renter to back-fill your vacancy.

As for price, the general criteria is that the property needs to cashflow.

In your case (trying to save money and build an equity snowball that grows larger from property to property) you'll want to start more conservatively to keep the total cost down. The lower your "rent" (your portion of the monthly costs) means you can save more each month towards the next property.

Thanks, @Kevin!

Hi Jason and welcome to BP!

I'm glad to hear you're taking in the podcasts, they are awesome! (My favorite is biggerpockets.com/show182 as I also like MF properties and apartments.)

Have you read the Ken McElroy's book "The Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals"? https://www.amazon.com/dp/B00E258KUQ/ref=dp-kindle... I'm in the middle of it and really like what he's got to say -- confirming my choice to go MF, especially apartments.

Good luck on your plans!

Hi Ken and welcome to BP! There is a ton of info here and lots of smart people who have done what you'd like to do so ask your questions!

I'm also a newbie here and have MF focus, too. I'd recommend you dig through the podcasts to find anything to do with "multifamily" and listen to them. Here is one of my favorites with Jake and Gino, the apartment hunters: https://www.biggerpockets.com/renewsblog/2016/07/0...

Jake and Gino have their own great show and resources, so take a look here: http://jakeandgino.com/

Good luck to you both on your MF goals!

Another resource to investigate is BMO: http://www.bmomn.com/

Their other products seem high to me tho I can't comment on their cabinet prices. Can anyone else here in the cities chime in with their experiences at BMO?

Looks great!  Congrats on this success and I wish you many more!

Hi @Melanie Raine. This is a nasty situation and I agree with @Jessica Grewe that your friend may be too close to the situation to do a good job at it, even if she has the skills to manage the rehab.

This page discusses tax forfeited properties, but there are some contact numbers there where you may be able to get answers to your questions: http://www.co.goodhue.mn.us/196/Forfeited-Land-Gen...

This site answers a bunch of questions about foreclosures in MN: http://www.winthrop.com/news_events/winthrop_news/...

If you decide to proceed, I know of a couple of contractors in the Canon Falls and Nestrand area that work in Goodhue County that I could put you in contact with. They have done both new construction as well as rehab work, including purchasing foreclosures. PM me if you would like their contact information.

I just attended my first auction and walked away with the contract! It was exciting and scary at the same time.

We picked up a nice 3/3 split-level SFH with two rooms in the basement that are an egress window away from making the place a 5/3. Cosmetic work needed upstairs (plaster touch-ups, paint, minor trim repair) while the basement needs a bit more (replace ugly paneling with sheetrock, remove floor tile and put in carpet, egress windows).

We close in 30 days. The place should have an ARV of $325k and I got the place for $240k.

During that time we'll get plans and designs in place so we can hit the ground running and be ready to put it on the market after 3-4 weeks of rehab.

Has anyone else felt panic after signing on the dotted line? After the bidding ended I asked myself "self, what have you done?!" The numbers on this are decent and I've done quite a bit of work on my own houses so I guess I just gotta get the plan in place and follow it to get those butterflies flying in formation...

Looks great and should go quick!