All Forum Posts by: Terron Winn

Good Morning, Good afternoon, Good evening BP. 

I am a new investor looking at purchasing in the Indianapolis market. My strategy in purchasing a home is using a HELOC from my primary residence from California but I am a little confused on what a great rental is.

I have searched Zillow, Trulia , Mibor and I have also had a few realtors send me properties. I see a lot of properties that would work in my favor but I am uncertain on if it will ever be rented out. I take gross profit and subtract 40% to cover PM, taxes, debt service, and other expenses and I still have a decent net profit. However, when I see these properties my mind gets flooded with other questions that are crucial. Like Crime, vacancy rates, a,b,c,d class neighborhoods. 

My question is, If I locate a property that I think will work, would someone be kind enough to go over my finished analyzed project? I would give you my opinion of the property then you tell me why I may be right or wrong. . Kinda like homework for me :)

Please and thank you in advance. 

Terron 

Good Morning, Good Evening, Good afternoon, 

Hello all, 

I see tons of sites when I google vacancy rates and or Crime rates for a specific area of interest  but my question is, What credible sites are you using?

Also, what is considered to be a good vacancy/crime rate? What score should I stay away from?

Thank you 

@Jennifer Beadles The homes that I seen so far are distressed homes that need work and a great team to get it rent ready. After the whole project I suspect I could spend anywhere from 40-50k ( a little closer to the 60K you speak of) Now, I live in San Diego and never really visited anywhere else so using google maps to "view" the area is a big shock to me. I hear people speaking of a c class neighborhood but c class could be different for different people. 

Please introduce me to the contacts that you have. 

Thank you 

Terron W.

Good morning, Good Evening, Good afternoon,

My Name is Terron and I live in San Diego California with a desire to create financial freedom buy following the BRRRR method.

Currently I am looking in the Indianapolis area for distressed homes in the 20-30K range, however, is any one able to guide me in the right direction in choosing the right home/homes that I can create a positive cash flow? 

IE: acceptable vacancy rates, crime and any other factors that I should be looking at. What credible sites are used to determine these demographics 

Thank you in advance

Terron W.

Good Morning all, 

As you may know I have been fighting this up hill battle in trying to turn my PR into a rental and then purchase another home for myself. 

Thus far I have been told that I would not be able to do that because of my DTI and that the only way I would be able to qualify for a bigger home would be to sell my first and then seek a bigger PR. However; that is not what I want to do, I want to keep my first home and then purchase another one.

Here is a little background on my situation:

I bought my home in 2011 for 209k and paying 1460 a month plus $105.00 HOA fee (4.5 interest) . Currently, my home is now worth 390K but is still under MIP. As you can can see, I have equity and the home is still under FHA. My plan is to refinance out of FHA so I wont have to pay MIP in return I would be saving between 100-150 thus bringing down my mortgage.

Secondly, I want to then rent out my place for 2100 per month, but this is where I have a few options. Either take out some equity and purchase another PR but I was told it would have to be a bigger PR than my previous or else the lender would not approve. Most homes a step up from mine are about 500 - 550K. (this is where I was told that due to my DTI, I would not be able to obtain another loan. Or I can go in with my friend and purchase a new home together. (Not favorable).

Again, I could be making some money of my PR, (800 or so with out expenses.) but due to lenders rules, I cannot because of my DTI.

Does anyone have any suggestions on what I can do?

Terron 

@David Faulkner I can take out a HELOC loan but not utilize it and not pay anything for having the loan available to me?

What about the house I am in now, do you also agree that I should REFI now?

When would the income from my primary residence be counted towards the new mortgage when I obtain one?

Thank you so much @Nirmal Khanderia. I will actually follow this link now.

@David Dye I do have many options to choose from and that what makes it a little harder on where to go. I just want to make sure I am choosing the right/best choice. 

What do you mean by my PR leveraged out? 

@Rachel H. I can say that I am almost certain that I do not need to pay a guru thousands of dollars for the same information that I can get for free online; in a book, forums and videos. I guess the only difference is that all the guidance/information they give comes together strategically where else I would have to find bits and pieces and put them together myself for it to make sense. However, I learn better that way rather than having someone just through out the answers to me. 

And you are right, the deciding factor does come from within.

Thanks so much :) 

Hello All, 

I have a question that I cannot seem to find a answer too. Hopefully I can gain some knowledge here. My situation is a little different (i think).

I have purchased my house in 2011 using FHA for 209K. Now my home is now worth 380K and I want to refi by the beginning of next year due to some credit issues that needs to be resolved.

I would love the opportunity to rent out my home to purchase a new PR but I am not sure how to calculate cash flow using the numbers from FHA.

Secondly I would like to take out some equity my first PR to buy a new one so . . . how is that calculated in the cash flow formula?