All Forum Posts by: Siddharth Shastri

So People..

How about meeting up on Sunday Noon, Oct 12th ?

Great, looks like we've got the ball rolling. 

Weekends any time works well for me and on weekdays anytime after 5PM works good ...still running in the rat race you see :)

This is great everyone !! 

I'm really glad we're getting things rolling for this Portland Meetup (hopefully this will set off a few more keyword alerts) :)

How about choosing a day between Oct 12th - 18th ?

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Sid

Hey All, 

Starting this thread again. Anyone interested in a BP meetup in the Portland area this October? Looking forward to having some discussions on:

1. Multi-Family (finding deals, experiences etc.)
2. Finding a good General Contractor
3. Funding the deal through private and hard money

Let me know what you guys think.

@Randy Johnston Opens up perfectly now !! Thanks !!

Hi Randy, 

This is an interesting thread. Can you put out the details of when and where this event is going to be held? Couldn't open the link you've put in your post.

I've recently picked up a couple of SFR's in Oregon and am looking for private funding to get into Multi-Families with the intention to generate cashflow.

@Andy Collins : Thanks for responding to my post so quickly !! I don't have the 20% down (40k) in hand to get conventional financing. Which is why I started looking more and found the Second Property, that may be a better option. However, the Second property is a Short Sale. Any tips on purchasing Short Sales?

Hope Everyone's having a splendid weekend !! 

I found two properties that I'm interested in as investment properties, both SFR's, approx. 200k and 1500 sq.ft. range:

FIRST PROPERTY:

• 3B/2.5Ba, Ready to rent, No repairs needed, Asking Price: 212k
• Nearby properties(~ 3000ft radius on Zillow and Redfin) selling for: 220k - 270k
• Estd. Rental Value: $1700 - $ 1900 p.m.

Hard Money Calculation (Strategy to put 12k down and get HML for 200k. Refinance through conventional 20% down payment loan in 6 months)

• Loan Amount : 200k @ 18% Interest (12% + 6% ), 6 months duration
• Monthly Interest Paid to HML (Hard Money Lender): $3000
• Total Interest Paid in 6 months:                                   $18,000
• Rental Income in 6 months ($1900 p.m.):                    $11,400

After 6 months when I go to refinance:

• I'll be able to get financing for only 80% of the appraised value of the house (~ 240k) = 192k
• Total Out of Pocket Expenditure to Own House after 6 months
  • Downpayment (12k) + HML Interest (18k) - Rent (11.4k) + Balance Owed to HML (200k - 192k = 8k)
  • Total Expenditure = 12 + 18 - 11.4 + 8 = 26.6k

___________________________________________________________________________

SECOND PROPERTY:

• 4B/2Ba, Fixer Upper, Asking Price: 180k
• Nearby properties(~ 3000ft radius on Zillow and Redfin) selling for: 225k - 280k
• Estd. Rental Value: $1800 - $ 2000 p.m.

Hard Money Calculation (Strategy to self fund the fix and get HML for 180k. Refinance through conventional 20% down payment loan in 6 months)

• Loan Amount : 180k @ 18% Interest (12% + 6% ), 6 months duration
• Fixing Costs:                                                               $ 25,000
• Monthly Interest Paid to HML (Hard Money Lender): $2700
• Total Interest Paid in 6 months:                                  $16,200
• Rental Income in 6 months ($1900 p.m.):                   $12,000

After 6 months when I go to refinance:

• I'll be able to get financing for only 80% of the appraised value of the house (~ 240k) = 192k
• Total Out of Pocket Expenditure to Own House after 6 months
  • Fixing Cost (25k) + HML Interest (16.2k) - Rent (12k) + Balance Owed to HML (200k - 180k = - 20k due to ARV higher than purchase price )
  • Total Expenditure = 25 + 16.2 - 12 - 20 = 9.2k

___________________________________________________________________________

I'd like to know what you all think of this. If there are any flaws in this analysis (Hard Money Lending, Refinancing the Property after 6 months etc. ), please feel free to point them out. I'd be happy to get your inputs and make a winning strategy !! 

Best,

Sid

I'm in the Portland area too and it'll be great to meet up.  

@Cody Cox : Thank you for the invitation. REIA's are a really great place to meet the right people and I look forward to be a part of the NWREIA. I'll connect with you as soon as I'm in Portland.

@Jay Hinrichs : I'll be coming to the Portland and Hillsboro (Washington County) area. Adding to your comment, I too have found it difficult to find sub 100k homes, however not impossible. My search has yielded 4-5 properties within 70k that need some fixing and could rent for upto $1000 - $1150 per month. JV is a good option too, though I haven't explored it before. It would be great to connect with you and discuss about it.

Best,

Sid