All Forum Posts by: Jason Jones

In on the West side of LA too... Ventura county line.

I'm interested.

Any feedback on them? I just completed a deal with them and was pleased. I did one of the Jackson rehabs. I'm thinking of doing more deals... should I?

I'd rather hear the truth.

This was a single family home purchased for $41,000 - approx. $10,000 in rehab - total loan of $64,720 (cash out).

I admit... rent - PITI payment = $145/month

I did get a cash out check of $7500, which is reserved for expenses, so hopefully that will cover my mistake. If I wouldn't have cashed out then I'd be running a 67% LTV and would be close to break even using 50% expenses.

I had read a lot of books and done a lot of research over the past 2 years and thought I was prepared, but now I'm second guessing myself. I'll be sure to use the rent / 2 - P&I payment = positive cash flow on the next deal.

So how do I find properties at such low prices? Is it all about motivated sellers?

I really want to network with an investor, but I'm not able to play with the local investors since the homes in SoCal are so pricey.

So how do people do it? I've been trying to learn, but it sounds a lot harder in reality. Is it all about motivated sellers?

I just completed my 1st deal and was pleased, but now I'm second guessing it.

Purchased the house on contract using a Hard Money Lender (HML) to pay for the purchase & rehab costs. I paid 3 months of interest payments on the property to the hard money lender (about $1800). I spent the other $2400 on unexpected repairs (HVAC & plumbing). Once the rehab was complete, I had the property appraised. The appraisal came in at $80,000. The amount owed to the HML was $54,000. I financed a 80% LTV for $64,000 which allowed me to cash out $10,000 minus closing costs, tax & interest for impound acct., etc. and still have $16,000 in equity. The property cash flows $145 a month.

I'm about to do antoher... should I?

MikeOH - How do you quit your day job if you only cash flowing $100 a unit? Does your book have all the secrets?

:)

Good info. I actually live in California (outside L.A.). I'm looking to invest out of state becuase that seems to be the only way to get postive cash flow and since I'm young and don't have a lot of capital.

Have any of you read MikeOH's book? Thinking I might buy it.

You have properties cash flowing $400 a month? Wow... do you have a big down payment. Seems almost impossible to find deals that good with expenses that high - especially when starting out.

Alright... thanks for the info...

Rents are low becuase this is a small (and I mean small) town in Ohio. I haven't had any luck finding comp data (sales or rents). There are duplexes in neighbooring towns renting for $400-$500 a month per unit, so there may be an opportunity to raise rents. There are also similar duplexes in neighbooring towns selling for $180-275,000.

I also don't know about the interior condition of the place. It says good condition, newer roof, etc. and it was built in 1980.

I agree it's better to factor in maintenence, etc. I've read 7% for vacancies, 3% for maintenence, 10% for property management, etc. I am not trying to "make the numbers work". I'd rather be conservitive.

This is also based on 100% financing at list price. Any down payment or reduced purchase price would affect the cash flow. It is a down market afterall. Especially in Ohio.

Thanks for the info... I appreciate it.

$1325 for all 4 units each month.

Wow... 50% for expenses? I'm aware you need to factor in vacancies, maintenance, etc. but I'm suprissed to hear 50%.

I thought the general rule was a rental property should produce at least .8% gross rental income. So at $133,000 it should rent for at least $1064 a month.

I found a property that sounds like a good deal. Wanted to run this past you guys and also see about getting financed.

2 buildings - 4 units total (two duplexes)
each unit is a 2bd, 1ba

They are asking $133,000 for all 4 units. All are currently rented, generating $1325 a month. Tax is about $930 a year and owner would have to pay insurance.

I estimate the payment on this would run about $918 (100% LTV). Seems you could still turn positive cash flow even with all expenses, including property management.

What do you think? Anybody able to do 100% financing or close to it? I have excellent credit, secured assets, and documented income.

Thanks,