All Forum Posts by: William Huston

Hello All, 

Monday night i went to a RE investing meeting and one of the speakers brought up something i had never heard of before, i know a little about HELOC's, just never used one before... but this idea he brought up just seemed way to good to work.. He brought up a 60% Heloc Strat....

Example given:

$100,000 3/2/1 SFH

$1,000/ Month Rent Rate

30yr Mortgage 5.0%

Option 1: 20% down

20% down 20k, Mortgage payment of $430/month+$245/month expenses, cash flow $325/month ($3,900yr) + est $1200 in equity payed down... for a gain of $5100yr

Option 2: 60% down

60% down 60K, Mortgage payment of $215/month+245/month expenses, cash flow $540/month ($6,480yr)+ est $480 in equity payed down.. for a gain of $6960yr

Option 3: Heloc 60% strat

60% down 60k, Pay Mortgage payment of 215/month first 3 months, then apply for a 15yr HELOC ~5% for the 40k remaining of loan. Pay off the Mortgage and pay off the Heloc with the Rent ($1000) - Expenses ($245), which with simple interest payments comes out to 4 yrs 6 months to have the house free and clear, plus you pay a micro fraction in interest over the less than 5 years.

Then part 2 of his strat for advanced investing he called it, he said the typical lifespan of a rental is 7yrs between light rehabs, since you payed it off before the 7yr mark and it appreciated about 10% conservatively, you sell it, and do a 1031 exchange and roll the 100-120k profit into a house that the 60% down payment is within that last rentals sell profit or buy multiples and run the Heloc strat again. 

House 1: 100k, 60k down sell for 120k in 5yrs

House 2+3: 100k, 60k down, 100k, 60k down sell for 240k in 5yrs 

House 4+5+6+7: 100k, 60k down,100k, 60k down,100k, 60k down,100k, 60k down, sell for 480k in 5yrs

House 8+9+10+11+12+13+14+15: 100k, 60k down,100k, 60k down,100k, 60k down,100k, 60k down100k, 60k down,100k, 60k down,100k, 60k down,100k, 60k down, sell for 960k in 5yrs or live off cash flow for rest of life....

So in 20 years you took 60k and turned it into 960k, earning 45k/yr CoC or 75% ROI

Yes, i am looking for long term hold and rents, i dont have enough experience in rehabbing to do a flip yet, due to my physical limitations from my military days, i am striding to increase my passive income to a point i can comfortably live the rest of my life on.

In regards to the %, i have no clue, i have gotten multiple comments to just go by the percentages.... with no additional details.

I was curious if someone could give me a little input on this so i could better understand it. I recently posted a list of numbers i ran on some properties local to me after writing some code on Podio to make it quicker and easier to do the calculations. When i published it someone mentioned to me i need to use the % method to quickly analyze a deal, that i am wasting my time imputing all the details in my fancy software....

So i am a little lost on what and how this works if someone could explain it to me. 

Just to throw out a property for example:

100k Purchase price

10k in repairs

130k ARV

1300/month rent

1313/yr taxes

550/yr flood insurance est

800/yr insurance est

10% management fee...

Someone mentioned they cant read the pictures, so ill try an outside source to post picture...

Hello All, 

Last night i spent a few minutes and tossed together a app in podio to assist me in quickly working out deals in the future. So i quickly tossed in 8 properties that popped up in my custom MLS searches that im starting to program into the MLS for different areas. I wanted to get some input on what you think? anything that i am missing in my calculations possibly?

Florida Investor here...Tampa Bay area

Still learning myself, but currently have 5 rentals with 1 on the way...., but i have my properties all over the place from my military days. 

Property 1: 29 Palms, CA

Property 2: Cherry Point, NC

Property 3: Colorado Springs, CO

Property 4: Yuma, AZ

Property 5: 수원 (Suwon), South Korea

Thank you for your input, i may try out both Podio and Excel for a bit just to see which one i like, past hour i spent a few minutes creating some simple apps in podio under a new workspace to input properties to do the calculations for me. I dynamically linked them together, so all information associated with the specific property is tagged together. So after inputting the basic information of the property, i then added so i can input the tenants info, which property manager, which mortgage and link them together with relationships. So when i go back to the properties profile i can easily see which tenant is renting out the unit, who the property manager is, and which loan is on that property.....

I currently have 5 rentals, so once i figure out what info i SHOULD be tracking on my units myself then i can keep adding it tell its perfect.. I gotta grab some sleep, but i plan on adding an income and expense app, so i can link income and expenses per property... All of this is still within the free interface of podio, i have been using it for nearly 2 years now with being a realtor and have added over 10,000 contacts to my CRM workspace i created in podio...

One of the main reasons i played with podio lastnight in regards to tracking my rentals over excel, was i dont know how you can add receipts and documents to excel so you can track papers per property....This is a feature i have been using heavily with the podio app on my phone lately, i have been uploading the documents when a client makes an offer to the CRM, which stores them to an organized google drive, as well on my realtor expenses side i have been using it to store all my receipts and random pictures i need to store in regards to my realtor business.. these get tagged with a date and time and i dont have to go searching for them on my google drive. 

I am curious what others are using to track information on their rentals they own? it seems most use Excel....

Personally the last few years i have been extremely hands off on my rentals, i have all my rentals managed professionally and have had so little problems that i can go an entire year without hearing from them and print out my tax info for tax season....

Since im actually studying to invest in real estate better and make better ROI, i am looking to setup tracking on my properties so i can understand my numbers better and predict things in the future...

I was curious if someone would share an example of how they are tracking their properties and expenses so i can format my own correctly from the start. 

Currently i use Podio for my CRM as a Realtor, maybe i can setup the tracking in this system so its all connected like i do my clients...

Honestly it really depends on the property management. i have 7 properties in 7 different states from my years in the military, so i have property management on all of them, but over time i have had amazing property management and also lazy management. i have no issues with paying for the work they do, but i also switch as soon as i get wind of lazyness occuring, there are 1000's of property managers in every city really.. so its not hard to find another.

One of the biggest things i ask for is bi-monthly pictures, because one of the things i require on my rent contracts is a list of all the vehicles that will be at the property, because with the economy in the crap lately, i have had properties rented out and many people pull together and live in the house with someone taking on the rental contract stating that its only them and maybe 1 other person. The times this has occurred on me the amount of damage that occurred at the property due to excess wear was just eating away at my cash flow. So getting random bi monthly photos i can see of changes occurring from outside and a chance of seeing excess vehicles...

My rental property in California, i had a contract to rent it out to a mother with a 4yr old daughter. 2 months into the contract i had a drive by happen that showed like 6 cars in the driveway, so i asked them to retake a picture the next day and 5 of 6 were there.. and on the 3rd day all 6 were in the picture again. I questioned the renter and had to evict her, because she had bunk beds in the other room of the 2 bedroom house with 4 spanish people living in a single room together along with her, her daughter, and the boyfriend.. so 7 people total living in a 2 bedroom house. When they moved out i had to repair the bathroom, because with 7 people the amount of showering caused water damage to the walls, making the paint curl and peel back causing the water to soak into the walls and start molding in just a few months. 

Your welcome, but dont take my word soley, do your own homework and do some research with a few RE investment books before deciding to go to any RE training camps. I was foolish to go honestly, i was talked into it from a few members at a local real estate meetup group, who over time i have noticed that literally pressure new members into going to these boot camps. I am starting to think they get paid to push these bootcamps on new members coming to the meetup groups.