All Forum Posts by: Tom Rottler

Do you think it is possible for those fees and interest to be over $50k? It appears to have been in some type of foreclosure process for over a year. 

Looking for some insights here, old google didn't have them. I found a listing for a short sale that meets my investor parameters. I also found the foreclosure proceedings in the county clerk of court filings. It appears that the lien amount is approx $153k from the original 2008 loan but the listing amount is >$200k. That doesn't seem underwater so not sure why it is listed as a short. There doesn't appear to be any refinances in the public record. Their agent has shared that list price is the bank approved price and won't go lower. Any thoughts on why a seller or sellers agent would list as a short if it isn't underwater? 

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Thanks for the insights. I decided to pass on the property. With the unknown expenses, like property insurance and stepped up property taxes, and the known expenses and mortgage, the property didn't cashflow at all or enough to make the investment worth it. Risk was nice and low, but low risk=no reward. 

@Greg Dickerson Yes, I think the insurance is low. The commercial rental is triple net, so they cover building insurance, but I"m not yet sure how that affects building insurance costs for the residential rental side. 

@Sam B. Idea is 20% on my primary residence Heloc, and 80% on conventional financing. Talking to the lender next week on whether that meets lending standards. 

Yep, amortized over 20 but fixed for 5. Trying to weigh low cash flow vs low risk/equity increase. 

I have an opportunity for a small mixed residential/commercial property in a college town. Two apartments up on annual lease and 1 pizza franchise downstairs on a 5 year NNN lease. 5 year old property. Need some BP eyes on it. Would you invest if you saw these numbers? Low risk, low expense, cash flow not great, long term 25% IRR, 7% cap rate.

$700,000 purchase, 100% financed at 4%

$56,473 rents

4% property management fee

$2500 property tax

$1000 insurance

new building, low expenses

https://www.calculator.net/rental-property-calculator.html?cprice=700000&cuseloan=yes&cdownpayment=0&cinterest=4&cloanterm=20&cothercost=5000&cneedrepair=no&crepaircost=10000&cafterrepairvalue=150000&ctax=2804&ctaxincrease=3&cinsurance=1000&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=2000&cmaintenanceincrease=3&cother=200&cotherincrease=3&crent=4973&crentincrease=0&cotherincome=0&cotherincomeincrease=0&cvacancy=2&cmanagement=4&cknowsellprice=no&cappreciation=2&csellprice=200000&cholding=20&csellcost=8&printit=1&ctype=

Looking for some financing insight. I've got equity in my home and can access up to a $350k HELOC. My idea is to use the HELOC to make cash offers for single family, and up to 4 unit multis, then BRRR. I'll then pay back the HELOC 80-100% with a cash out refinance on a 30 year fixed personal residential loan, then do it again on the next property.

I'm in the final stages of the HELOC but I'm trying to decide between getting the maximum HELOC limit ($350k) with prime + .85% APR or stay with 70% LTV ($250k) and get a better prime - .25% APR. Considering my interest in getting traditional financing on the properties, is it better to have access to a bigger HELOC and more capital up front or keep LTV lower to get better rates and have a better DTI for future refinancing of the investment properties. Any insight experts? Thanks! Tom