All Forum Posts by: Troy Forney

So we have purchased 3 single family and 1 duplex in the past 3 years.  They are cash flowing fairly well.  About $200. per month per unit after expenses, cap. ex etc...   Averaging 40k equity per property and I do see the tax benefits.  It just seems every time I turn around taxes are going up or I have to fight the assessed value.  With only 4 properties it seems to be getting a little bit of a hassle.  We do have a management company also, but are hands on working with contractor, cleaning etc...  So it is not bad, but I just wonder is it worth it?  I need like 20 units or properties at this rate and I fear I may regret if I keep going.  

I just need someone to convince me to keep going.  Thank you.

I ended up selling that as a flip. Never did the cash out refi. We bought a duplex on a 30 year fixed with a local bank. Commercial deals are usual ARMs which I am not comfortable with.

To get the lowest rate which is 7 ish right now, its 60%  ltv and at least a 740 credit score.  They have a table on their website.

I took my information to a bank and a broker. My debt to income is too high to qualify with Fannie or Freddie. Over 50% on the back end. They are counting a portion of the HELOC against me even if it is paid off, they assume you will always use a portion. Is the conventional rehab, a FNMA/Freddie product? I have been using 70 to 75% as my rule of thumb yes. I don't like borrowing too much and eating up my cash flow. $200. a month after reserves, and all all expenses just seems so little. So I usually take a smaller mortgage. I usually borrow 60% or less the value. Maybe I am being too conservative.

I just found Real Property Management in Corpus Christi by googling.  They are a nationwide franchise.  I have been using them for a few years in my area and really like them.  Good Luck.

Hey BP,

We (my wife and I) have been buying properties cash and also rehabbing them with cash. Then we do a cash out refi and pull out most of our original investment. BRRR, right? I do think I have seen it also done with hard money to buy and rehab then refi into a more permanent loan. Now I am at a point where if I continue, buy cash and rehab cash, all of our money (reserves also) will be tied up. As of of now our HELOC is close to maxed out, well some room, about 6 months reserves on the current mortgages. I planned on paying down the HELOC, but now it seems I maybe buying this cash. I have talked to LIMA ONE, it seems it will be quite expensive to finance the rehab and then refi again. Two closings, plus all the fees and interest. Is it worth it to use less of your own capital?

Speaking of Lima, anyone know of a better rate then Limas?  30 year fixed at 7%+?  Looking for a 50k loan.  I know that's not bad considering investment.  Used them on my last cash out refi got 6.95%.  Just not real familiar with all the different financing and the game of moving money around.  I would appreciate some thoughts and suggestions.  Not real creative in this department.  

Appreciate the wisdom.  I am currently well diversified and know the reasons for it.  I just was hoping to get many responses.  I like to have many different opinions to ponder.  

I recently listened to both Grant Cardones  podcasts.  He stated, he does not believe in diversifying.  Find the right vehicle and go all in.  I am still contributing a good amount to my simple plan (self employed 401k) .  What is everyone thoughts on this.  What is the general consensus among BP investors?  I think it makes a lot of sense.  I would have more money to buy more properties if I stop my contributions.  Feels risky, but am I just used to mediocrity and fear?  How has everyone else dealt with this? 

I actually know what the bills are currently.  I am just trying to see if the market will bear raising rents high enough to offset the cost of the heat.  It is not typical in the area, but I have found some rents that include heat.  

Which do you think is the most cost effective?  Even if I went with electric, either way the boiler pipes will have to be reconfigured.  You think installing second boiler makes most sense?  I just don't want to get into a situation where I estimate $6000. to do this and it be $12,000.  I can get a furnace installed for like $2500. plus extra for duct work.