All Forum Posts by: Thomas Woods

I purchased my first duplex 6 months ago. I live in 1 unit and rent the other. After PITI and all expenses I typically only pay $100 per month out of pocket total. I put 5% down and have a mortgage balance of $160,000 remaining. Conventional loan at 4.5% interest.

I have have an opportunity to purchase another duplex that i'm estimating will net $700 per mo. after PITI and all expenses. I only have $10,000 in the bank and want to purchase this second property. It's valued at $160,000 so my only option (that I see) is to put 5% down conventional loan.

My goal is to own a 6-10 unit apartment building in next 3 years. I'm don't know how i'll get there because if I continue only putting 5% down on my units I can't do cash out refinancing to put towards the 6-10 unit apartment building. Do I continue saving money instead of purchasing more duplexes for 5% down, do I use HELOC since I can't do Cash out refinance (if it's even an option), do I have to sell the duplexes to get my equity money for apartment building? My biggest question is how or when do I liquidate. Do I just have to sit back a few years until more equity is in homes, etc.

John,

Are you buying these duplexes at or near market value? Is there any value add opportunity to increase value?

Do you plan to live in one side of the first duplex long term?

Without knowing the full details, the second duplex purchase sounds like a great deal. $700 income per month after expenses AND debt service. With the plan to scale up, how much money can you save per month moving forward? Would you consider bringing investors in for the next deal? Sounds like selling the duplexes to take the equity out and put towards a larger unit is one option, but it is not the only option.

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Hi Eric,

I've purchased 6 single family homes in the last year and have used Union Bank and Trust and Park Sterling and would recommend both of them.Let me know if you have any specific questions.

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@Alex Klimenko The norm is whatever the wholesaler and who they wholesale it to agree on, it can range as long as the numbers work for both parties. But for this case, if he sells it for $230k have you factored in commissions and closing costs on the resale side? So he'd be making less than $35k on the deal. But to your main question, it's not uncommon or unreasonable for a wholesaler to make $10k on a deal if the numbers are good enough. Where is the property located?

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Moseley Flint - do the online self study course. That's what I used to get my license. Very easy to get through and it prepared me well for the licensing exam.

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Hello,

New member here. I live in Mechanicsville, VA, right outside of Richmond. I am a licensed real estate agent and investor. I currently have 2 single family rentals, and I just bought my first foreclosure at a courthouse trustee sale that I intend to flip. I'm looking forward to learning on here, as well as connecting and network with folks around Richmond.

Thomas Woods

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All Forum Posts by: Thomas Woods

Thomas Woods has started 1 posts and replied 5 times.

Post: Strategy to scale more units

Post: Community Bank/Credit Union Recommendations - Richmond, VA

Post: How much should a wholesaler profit when selling to an investor?

Post: Getting license which class? Virginia

Post: New member in Richmond, VA