All Forum Posts by: Steven Barr

I just rehabbed a house and I have the appraiser coming out in a few days….

There is some additional square footage now, but I am unsure how to officially record this for the appraiser to take into account 

Is this something that I can measure myself and just tell the appraiser? Or does a certified professional have to come do it? If so, who would that certified professional be?

thanks guys! 

I had someone approach me about Subject To. I know be very little about this, so figured it’d be easier to ask BP instead of burning an hour of research to find the answer 

Are you able to sell a property a few years into taking over the payments? Or are you locked in to the duration of the mortgage once you take over payments?

@Jessica Soares I am just starting out and actually have the exact same goal. We just bought our first deal. Where are you now? Were you able to achieve this?

@Steve Vaughan 60% feels like a good number and to @Jon Kelly’s point, probably allows you to continue to grow and have cushion at the same time for those bad months or bad economic periods

Appreciate the responses guys! This is very helpful in developing long term cashflow goals

@Scott E. I should probably clarify that I am not currently cashflowing $30k/mo. I am just doing some foreword thinking as that is the 5 year goal. 

Just didn’t know if there was a rule of thumb in real estate that said “mortgage shouldn’t be more than 20% of your cash flow” or something along those lines

I am currently using 40-50% (depending on property) for capex, opex, vacancy, prop mgmt, etc… I shuffle that percentage of rent into a savings account for the property for inevitable expenses. So feel like I am being conservative, but still, building a lifestyle where I am living off of 100% of the cash flow just feels like there is little room for error 

How much of your rental property cashflow should you live off of? 

For example, if I cashflow around $30k/month, how much of that should I ACTUALLY be spending on my lifestyle? What percentage should go towards my personal mortgage, toys, travel, etc..

Further, I wouldn't want to develop spending habits that had me on razor thin margins, so what should my OVERALL spending percentage be relative to my cashflow? 50%? 70%? 80%?

I understand the goal is to work to continually increase your cashflow by acquiring more properties over time, and that annual rent increases will give you a natural boost, but I imagine you want some cushion built in to your spending habits for inevitable bad times economically?

Thanks! 

Do y'all have any recommendations for most RE friendly bank to use? I would like to be using a big name bank with branches everywhere like Bank of America, Wells Fargo, etc. I am using a large bank right now, and I won't mention their name, but they are a NIGHTMARE. Leaning towards switch to BoA or Wells Fargo, but wanted to see if anyone had experience with them or possibly a better suggestion?

Ex (quick money movement, low fees, great service and communication, ability to be reached, online wires) 

I should also add that I don't need them to have great loan terms or RE products. I am simply looking for ease of use in transactional purposes like checking, wires, and personal distributions.

Thanks so much!

There's all these formulas for calculating expenses and backing in to cashflow, right? How do you guys manage this operationally? 

In reality, rent will hit your bank account, but it doesn't separate itself into specific categories. Do you shuffle your estimated capex and opex to a separate savings account? Or do you just let it all sit in one checking account, and then only take a small portion of it as a distribution if you want cashflow?

I am looking to use conventional 20% down financing to purchase a home. Is it possible/are there places to allow you to take out loans for just the rehab portion of the deal?