All Forum Posts by: Steve Olivier C.

Hi Robert, 

Are you looking to flip or buy & hold? If you indicate it is to buy & hold, i will be happy to connect to share some of the publicly listed findings with numbers details online. 

Good luck with your search!

Steve Olivier 

Hi Gilda,

As per the description of the type of property you are looking for, the following example can be seen online for the public listing of 5 Maes Rd in Corrales NM, where there is more details behind each number for transparency & independent verification. 

Good luck with your search!

Hi Stephen, investing in college towns can still go well at current market rates and ask prices, in examples i see: for instance with net month profit of $450 corresponding to 7% annual return cash-on-cash with conventional investment on the listed $225,000 property at 16 Downes St New Haven CT, located 7 blocks from Yale School of Medicine.

Yes for FHA under requirements including that it will be a primary residence located at least 100 miles away from the current residence.

Good luck with your deal!

@Pamela Rogers

Hi Pamela,

For a financing alternative that keeps you as the sole investor and owner, you could technically consider lenders loans of type hard-money if the property's purchase price is significantly below its value after repairs (ARV), as you might be able to repay enough when do a refinancing of type cash-out 18 months after the purchase (assuming you get the longest hard-money loan duration which is 18 months typically). Keeping in mind the generally tougher terms of hard-money lending include loan rates that are much higher than the 11% return you foresee on your cash on cash investment.

Looking forward to hearing how things go or to elaborate if anything I said raises questions and you want to reach out.

Good luck with your deal

@Joey Hart

Hi Joey,

If you can house hack and get a loan of type FHA, then you can leverage your cash for the downpayment to buy and hold a multi-family with rental income in the city where you work, like in the actual example below, while possibly letting you a little room to also do fix and flip if you want.

Example currently on the market via Zillow it can be seen listed for sale at $795k a Multi-family with 2 units at 1621 W 57th St, Los Angeles, CA 90062. The cash downpayment of 3.5% with FHA loan would be $28k, and the cost of [email protected]% plus taxes and insurance is estimated at $4,210 monthly. You will deduce from it the rental income from the unit not occupied by the owner, which would be around $1,800 per month according to the comparable rental listing nearby at 1348 1/2 W 57th St,

Good luck with everything. I'm looking forward to hearing how things go or to further talk directly if you want.

All the best for whichever first deal you will decide!

@Damary Fletcher

Hi Damary,

Could you consider buying a house that you use to both live in and get investment revenue from renting part of it: specifically for example on Zillow currently there is for sale at $415k the property described as having an in-law suite at 4305 W Knights Ave, Tampa, FL 33611

Good luck with everything!

@Jason Hill

Hi Jason,

With a strategy of type BRRRR, you could get cash to recoup the rehab costs while keeping your current property, if you take your existing mortgage to a bank or lender to do a refinancing of type Cash-Out: up to $35k, corresponding to standard market practice for such refinancing type where you get up to 80% of the difference between what you said you have left to pay on your existing mortgage ($81k) and the current property valuation ($125k it seems). The terms of the refinanced mortgage should be similar to or better than your current mortgage terms, because the rates in general now are historically amongst the lowest. Therefore you would be able to increase rent as you said to $1,000 after rehab, without cash outflow from you overall (net) after cash-out refinancing.

Rental of your current property would then give monthly net cash flow of $1,000 income you estimated, less your mentioned monthly cost of $550 (assuming the mortgage after refinancing is going to be at similar or better cost for the reason discussed above) less other expenses you are already paying. So, you should get net cash flow improved by at least $200 per month, without net cash out of your pocket after cash-out refinancing. Hopefully it's profitable for you already there.

Selling your property would get you about $41k net, assuming you deduce broker costs of 6% from the proceeds after paying the $81k left on the mortgage and receiving the $125k value you estimate from a sale. Compared to the cash-out refinancing approach: selling would provide about $6k additional cash and you won't be getting anymore net cash flow from renting it (of course if rental is not profitable you might not mind about not having to deal with its operation net cash flow).

Good luck with everything. I'm looking forward to hearing how things go or to further talk directly if you want.

All the best with your deal!

@Daniel Kelly

Hi Dan,

If you are going to get 19.7% Return On Investment taking into account your own full cost of purchase and financing at a fixed rate, then about 6 years down the line you should be roughly breaking even on your investment unless expenses growth more than the rent you get. So after 6 years if you want to sell even at a lower price than your purchase, you can still achieve profit across your overall investment.

Good luck with everything. I'm looking forward to hearing how things go or to further talk directly if you want.

All the best with your deal!

@Leslie Heimer

Hi Leslie,

You could get cash for the downpayment of your next property purchase while keeping your current property if you take your existing mortgage to a bank or lender to do a refinancing of type Cash-Out: up to $164k, corresponding to a standard market practice for such refinancing type of calculating cash to give based on 80% of the difference between what you said you have left to pay on your existing mortgage ($170k) and the current property valuation ($375k it seems). Also, PMI would no longer be there on the refinanced mortgage (because of your home equity), and the terms of the refinanced mortgage should be similar (or even better maybe) than your current mortgage terms because the rates in general now are lower than those in 2016 when you took the mortgage.

Rental of your current property could give monthly net cash flow of $2,000 income you estimated, less mortgage monthly charge of $837 (assuming 30-year mortgage rate after refinancing is 4.25%) less similar other expenses you already pay including property taxes and insurance. So, hopefully it's profitable for you already there as your first real estate investment.

Selling your current property would get you about $192k net, assuming you deduce broker costs of 6% from the proceeds after paying the $170k left on the mortgage and receiving the $375k you estimate from the sale. Compared to the cash-out refinancing approach: selling would provide about $28k additional cash and you would then be the owner of the one property you plan to purchase with the help of the $192k cash netted from the sale of your current property; whereas a Cash-Out refinancing could make you the owner of two properties including the current one as an investment property and the other one you plan to purchase if $164k cash out to you would help you do it.

Hope the above helps. Good luck. I'm looking forward to hearing how things go or if you have any question regarding what I said please feel free to send me a message.

All the best for your real estate deals!