All Forum Posts by: Ron S.

thanks Mark I will be managing the property myself so I could save about 10 % more. Thanks for the reply.

Hello Im considering buying a 2 unit home it is a 2 bedroom full basement and seperate in law quarters above 2 car garage in a good area and both units are in awesome shape. Newer kitchens and baths and flooring. Rehab would be very minor maybe 2k total. back unit is a 1 bedroom and includes the garage both units have own electric and gas meters. home was purchased in 2007 by current owner for 148k and brought up to city code! I can get home for 76k approved short sale. The rent on main home would go for 800 and back apartment 500 for a total monthly rent of 1300. Taxes and insurance would run 3800 annually and 20% down would leave me with a mortgage of 328 for 30yr fixed and 452 for 15yr fixed. so total monthly profit after mortgage taxes insurance would be 656 for 30 yr and 532 with 15yr. Can you please let me know what you think of this deal?? thanks....

Thanks Collier! I have thought of that if for some reason I cant sell the home for profit I would then rent it out. This home would rent for 1100 monthly and mortgage with taxes and insurance run 775 so i could cashflow over 300 a month worse case!

I Have decided to try my first flip, something I have wanted to do for awhile. The Property is a 3 bed Brick Ranch 1 bath with 2 car garage. Its a fannie mae forclosure. The house is 70k and needs about 10-12k work. I think i can do it for 10k but want to allow a few extra thousand for surprises. I will be doing most of work myself except the picure window and 3 slabs of concrete. Home is already in good shape mainly needs simple city code violations. The roof is newer on house on garage the furnace and air are newer no water damage in basement. Needs all new carpet new tile floor in kitchen. purchase price of 70k with renovations and closing costs should be into it for 85k when all fixed up and ready to sell. I figure it will take 2 months for rehab before listing so i will have carrying costs for 2 months plus the time frame to sell hopefully within 1 to 2 months. Home should sell for 115k when fixed. I am getting those numbers from comparables that have sold in the last 30 days. 110k being super conservative. Houses just like this one when rehabbed in this area are selling usually first week right now in the winter. Mine would be going up in spring which hopefully will be even better time to sell. So total figures are 85k in 2k holding costs. which should leave me about 20k profit after realtor fees and closing costs. What do you think.

I agree for me i need at least 300 to make it worthwhile. My 2 other rentals cash flow 1200 together each month which is nice but those are free and clear. And i would be looking to borrow money on the next one.

Hello Just wondering what your guys average cash flow was on your single family homes? Your true cashflow monthly after all payments taxes and insurance? And what do you feel is a good monthly flow 300? 400? or higher? Just debating purchasing another sfh and monthly flow would be around 250-300 after expenses just wondering if its worth it?

@ Scott W. Most recent purchase was 40k. With 6k rehab costs. Total 46k all in. And just rented out for $895 monthly.

@Charles Perkins Thanks for the replys! Call me old school but I do like to play it safe! Also having my properties paid for has given me the ability to save by having a nice cash flow from the houses versus a small net profit if they were leveraged.

@ John Briggs I fully agree and understand what your saying. When I started investing in rentals myself i never wanted to put myself in a situation where i feel over leveraged or stressed. Alot of people in the last 10 years got in way over their heads loaning more money than they should have been! And it caused alot of heartache and stress for alot of homeowners and landlords.

Was wondering everyones thoughts on Paying Cash for SF rental Homes. I bought my 2 Sf Rentals Cash and have really enjoyed it. It has made it stress free not worrying about monthly payments. This way between tenants or durng rehab your not stressing a payment. I realize some people wont agree with missing out on deductions and leverage. I know i could purchase some more property if i did cash out refis but hate to take on the debt. Maybe this is a mistake I realize rates are awesome but not having that debt over my head is a good feeling. And not having those mortgages really puts me in a great cash flow spot to save alot of money. Please let me know your thoughts.