All Forum Posts by: Taylor Jennings

Turn the water off.

*Address in Map Image Below

Newly rehabbed rental in Indianapolis! New wood finished vinyl planks with a high resistance to abuse in the Kitchen, Dining, and Bathroom. Fresh paint, New carpets, and fixtures. This cute ranch home sits across from a child daycare and St Andrew Academy Preschool. This deal will move fast! Call today! 

Send Us a Buyer and Get Paid: $1000

VIRTUAL TOUR OF HOME

PHOTOS OF HOME

FLOORPLAN

COMPS/CMA

TURNKEY PROPERTY SPREADSHEET

I need to update the app again.

How has it worked thus far for everyone?

@Steve Babiak where has the quick tip been on this edit feature! Lol Thanks Steve.

@William Hochstedler  We were selling it at $48k because that was the initial business model to sell turnkey properties to investors for a quick turnaround. The house is worth $60k, but any investor will want equity when they purchase.

The market is mostly FHA and from what I understand FHA requires a home purchase to season for at least 3 months before they will finance a buyer?

I think I will look into getting a blanket loan for multiple houses... 8% isn't something I want to pay, but I know other large funds that have that strategy. (Though I believe they are also selling shares on the back end)

@Dion DePaoli  Sorry it's confusing... The tune always sounds clear in one's own head.

Yea I can see the confusion already lol There is no seller financing involved in either deal. I'm looking to Cashout through creating a Note on the property.

BP needs to add an "Edit Post" feature... @Joshua Dorkin  

Dion, the 30% was intended to be 70%. I cleared that up in my post later lol I'm not selling a house for $100k off. I'm not that nice of a guy!

There isn't a $10k downpayment. The $10k is the profit we would have if we cashed out through the note and we would have a total balance of $42k to pay off through the loan.

lol I gave you a VOTE for the explanation of how the seller financing would work. I appreciate you taking the time to respond in depth, but yea, it's definitely not what's happening here Sorry about my lack of illustrating this transaction correctly...

Bah! It shows in the reply window like it's in a table format, but it definitely didn't come out that way...

Here are my numbers in Google Spreadsheet. You'll get to see the semi chaos lol The forecasting sheet is under construction!

Jennings Home and Property FORECASTING

@Robert Leonard undefined

Haha sorry about that... Yea it's supposed to be 70% LTV I was being rushed out of the house by the wife and have been dealing with too many numbers today.

X out the "selling a note" we have established that I will be creating one.

There's a nugget! I wasn't aware of the mortgage being a non-taxable event. Is it considered a non-taxable event on however many houses you acquire and do a cashout refi?

I could google it or find it on BP I'm sure, but if it's not too much trouble... How do I calculate the taxable pay day amount?

Here is my breakdown for your number viewing pleasure!

(I'd be surprised if it all made sense to somebody other than myself lol)

@Gilbert Ross Jr I agree. The need for cash is really what matters, but how much does somebody actually need?

I'm thinking I'd be content with a few thousand. Then to know I have reliable cashflow coming in and equity sitting on top of it would be nice.

Taking a bit less on the front end so that I have a sound foundation for the long term is really starting to make me wonder...

@Shawn Holsapple Everyone keeps saying need capital gains, but it's still like $10k lol That is pretty significant! Then to have the cashflow on top of it... I mean it's making more and more sense to me to create the note.

I guess I should look into a private bank around town to fund them instead of a private lender first right? 8% is high right now...

I can't do anything until I close on our first primary residence though! I'm a little nervous because I have 6 houses under JHP, but I'm the personal guarantor. Not sure if that will be overlooked or not when we try to qualify for this first time home buyer loan.

Back to the private banking... Do I need to look into a credit union or something?

 Yep, you got me on the note. I would be creating a note. Thanks for mentioning that!

I could be wrong here, but I believe the CAP Rate would change from #1 to #2 because I would be selling the property to another investor @ 10.5% CAP and the purchase price of $48k in #1.

In #2 I would be "creating a note" at $42k (30% LTV) and my Operating Expenses would drop slightly for insurance and prop management (which I didn't mention in the details) so my CAP % should go up to 13% with cash flow increasing and purchase price dropping?

Oh, I should have mentioned the property is in Indianapolis so all my local buddies can participate in this post =)