All Forum Posts by: Joshua King

Makes sense. I can put in the extra cash, its just an annoyance and lowers my ROE in the intervening time. The appraisal was good so i dont think refi will be a problem in 6 months. 

When you reference a double closing, would that us passthrough financing or are you thinking the wholesaler fully funds the deal and then turns around and sells to me? We evaluated both options and option 1 was a no-go for the lender. Option 2 would incur closing costs for the wholesaler. 

This is my second property. Hopefully my third will be an all cash offer then refi on the back end so things arent so rushed. 

Hey guys,

I'm close to closing on a deal (tried to close Friday but this issue moved us to Wednesday) and have a question.

The house in question is a single family rental with a tenant in place. Good payment history, slightly below market rent, but not bad. Immediate cash flow and the tenant is a handyman, so that's a plus. 

A: Owns the house, lives out of state

B: Wholesaler

C: Me, local buy and hold rental investor

Here's the deal. I'm buying the house for $125k from B who agreed to buy it for $115k from A. The $10k difference is his wholesaler fee and my realtor's commission. 

My bank initially approved the deal at $125k, but the closing attorney said we didnt have a purchase agreement that stated the price at $125k, so we couldnt close on that price. I am having to close on the Price of $115k and pay the $10k out of pocket instead of rolling it into the financing. 

The bank could finance it at $125k because the apprasial came back great, but its this legal technicality that is costing me $8k ($10k less the $2k decrease in the 20% down payment).

I already tried getting A and B to change the sale contract to $125k including fees, but A didn't want to change anything. 

As it stands I'm set to close Wednesday, then will refi in 6 months to get that $8k plus hopefully some extra back out. 

My lender has really been flummoxed by this purchase assignment thing. They do 1000 loans a year but most of them are primary residences. Havent seen an assignment in 4 years. 

Anyone ever run into this? Any different experiences or strategies for dealing with it? 

I was just about to start this same thread. Currently have SFR, but want to move into MF as well. Looking for a solid, reasonably priced CPA with good referrals.

Thanks! I'll pass along.

I have a friend looking for a property manager for his former home in Cedar Rapids, now lives in Atlanta. The home is (I believe) a 5br/4ba, on a two acre wooded lot. He estimated rent should be about $3k/mo. He has spoken to a couple companies in the area but they said they only manage homes they own (?). Looking for someone experienced who already manages properties in the area. I immediately thought BP would have an answer - help prove me right! 

I have a property under renovation that should be complete today or tomorrow. My focus has been on the rehab, but now I'm looking for a good property manager. Anyone on here love their PM and want to give them a referral? 

House is on the smallish side - 1400 sq ft. 4br/2ba, brick ranch

Rent estimate is $1300-1400

Nice neighborhood near downtown Kennesaw

I'm getting quotes on both. Thinking about DIY'ing the gutters because its just two straight runs and I'm fairly handy. Would replace soffit and fascia as needed. 

Closed on the house yesterday. Targeting to hire my roofer and floor guy by Wednesday. 

Thanks for the information guys. On the roof, my quotes have been significantly less than $10k. I'm not pulling up all the OSB and rafters, just replacing the shingles and underlayment and replacing any rotting areas. I'm getting quotes in the $5k neighborhood. Looking to do for $4500.

On the finish level - I'm building this to the market, so not looking to have this be a top level finish place, just a nice presentable house brought up to a good quality finish - catching up on the maintenance so ongoing capital expenditures are minimal. @Chris Brown, let me send you a PM and we can connect.

Any other contractor recommendations would be great!

Thanks!

I meant to post this in the Atlanta group subforum...mods feel free to move. 

Hey Guys,

I'm closing on my first rental - a single family home in Kennesaw, GA on Thursday. I've been lining up contractors, getting estimates, etc. but want to make sure I'm getting the best value/high quality contractors so I thought I'd post.

The house is a 4 sided brick ranch, about 1400 sq ft. 

3 br/1.5 bath - going to be 4 br/2bath

Very close to downtown Kennesaw.

Purchasing for $103k

Estimated rent per my agent (who works mainly with investors) and his comps is $1300-1400 with renters paying all utilities and keeping up the lawn.

Appraised: $113k

ARV estimate: $145k

My goal with this property is to hit the 1% rule (Be in it $130k or less) and cashflow $500/month. With 20% down, after taxes and insurance, mortgage will be $587. If i get even $1200 per month, my calculations say i should hit that target

The property has been owned by an investor for years and has a lot of deferred maintenance. I'm planning to put the difference between $103k and $130k into renovation (possibly less). Here's what it needs:

• Roof (with gutters, downspouts, facia, soffit)
  • Plus, install hardiplank siding on roof gables ~100 ft combined

• Flooring 
  • Refinish 900 sq/ft of hardwoods
  • Pull up 200 sq/ft of old tile/linoleum and replace with LVT
  • Level out 300 sq/ft of tile and lay LVT over top

• Plumbing
  • Install stand up shower in one bathroom (the two bathrooms are mirrors of each other, back to back, one just doesnt have a shower). Plumber said I have cast iron pipes, harder to work with i guess?
  • New water heater + Expansion tank

• Paint 
  • All interior and trim
  • Fix previous amateur repair on crack in ceiling

• Kitchen
  • New kitchen counter top (L Shaped, about 25 sq ft in total)
  • Refurbish cabinets

• General
  • Remove one interior door and wall up (this is behind the new shower)
  • Replace one exterior door

• Exterior
  • Landscape (mow, clear small brush/overgrowth, trim hedges)
  • Repair about 20 ft of fallen fencing
  • New crawlspace door

I'm not against DIY'ing a few things, but time constraints with a full time job mean hiring almost all of this out. If any of you have positive experiences with contractors in the area for any of the above areas that were good to work with as an investor (not trying to upsell you or overprice) I'd love to hear about them!

Thanks. I'll update the thread as i go