All Forum Posts by: Tim Vecchioni

 10-4! Thanks for the encouragement! With that said though, anyone else have some insight!? Looking for all angles of this to be discussed!

@Matt Faix The numbers should be there via the link in the middle of the post. Here it is again for easy finding. 

https://www.biggerpockets.com/buy_and_hold_results...

Looks like that may have expired. Not a Pro member quite yet :( One Second. 

Thanks @Michael Totman for the response. Yea, it is very confusing to me because even @Brandon Turner makes it SOUND as easy as finding someone who has the money, whether it be 1,2,3 + people to make a deal happen! In theory, I can see that working, but the how, is the problem I am having! I have always understood it like you mentioned saying they pay the full purchase price, but finding the people to lend you that amount of money while being new, isn't exactly easy! And I am more so looking to the PMLs not the HMLs at this point. Sure I have found people to lend me the money to HELP with the purchase/rehab for implementing the BRRRR method. But how am I supposed to use it without accepting it as a gift and letting it sit for 60 days!? No one wants to do that!

Hey BP. Back for another analysis question! We own a townhouse that we lived in for a year. We were robbed by our neighbors, which sucks because it was/is a nicer neighborhood, but they are all drugged up and decided to hit us while we were at work. Anyways, the wife didn't wanna live there after that, so we picked up and moved which left us upside down on the mortgage. So we decided to rent it out which turned into our first rental property! However, there is a negative cash flow by far on the property at the moment. But 5, almost 6 years later there is now some equity involved. I just ran the numbers if we were to refinance and continue to manage the property ourselves ( https://www.biggerpockets.com/buy_and_hold_results... ). This would not be a typical cash flow we are searching for ($200+) from a single unit, but it would indeed be cash flowing. Would it make sense to do the refinance and keep the property as part of our portfolio since we already know the ins and outs of the place? The property is in great condition as we have a great tenant in there at the moment. We are also thinking of raising the rent at the end of this lease in August by $25, which would add to the cash flow. 

Thanks!

Tim V.

Thanks @Miguel Garcia for the response! I am not sure it is that easy, but sounds like it could be from your story. Any others have insight on this subject!?

 For sure, This place would need to be rehabbed most likely from the time of purchase before renting it out. At least based off the pictures. I am going to try and see it Saturday. I will report back with some pictures and updated information.

So I have looked been looking all over the net for the answer to this, have watched 2 webinars, read countless articles, and they all say the same thing! If you have little or no money to use on your own, find private money! Ok, well I found it! Say my parents want to help me out after I showed them an amazing deal. Write me a check and let's get going right? Not so fast! According to my lenders that I have talked to, the money that is "gifted," needs to sit in your account for 60 days before Fannie Mae/Mac forget about caring for it. Sure if I had the money for 20%, they could just pay for the rehab costs, etc, but that is not the case! I do not have the full 20% that is needed but still want to push forward and purchase a property! So everyone says they keep investing using other people's money. HOW!? Please explain, because there is nowhere out there, that I have found over the last 2 weeks that explains it well. They always just say they use private money, hard money, etc if they find an amazing deal and need to act fast. Hopefully, I am not just missing something, but I am totally stumped on this one! 

Thanks for the help!

P.S. - Can you also explain if you had a PML/HML for the full purchase price, which could happen in the future after forming relationships, how that would work as far as applying it to buying the house. Because I would assume you are running into the same issue? Or is it considered an all cash purchase at that point and it makes the process easier? Thanks!

Tim V.

 Good to know. I knew there are areas over there that are bad, but wasn't exactly sure where. Thanks!

Also, @Andrew Hemminger , it is off of Greenbriar which is the next street over. Is it still a bad area? I feel I have driven back there before and it didn't feel as bad as when you drive back off ByWater!

 Gotcha, you are happy as long as the equity is being built :)

 Haha! Yea, there is a part down Forest Dr that is Section 8 housing. But it is not really within distance of this place to worry so much about. I am just worried that a 30k Reno budget may not be enough for what actually needs to be done to the place! I am gonna ask my realtor to look into the possible past inspection and go from there. I am curious though, you said most of yours are well under the 1%. I'd only assume you are still cash flowing but is it just not as much as you would like?