All Forum Posts by: Account Closed

@Shiloh Lundahl

Just listened to your BP podcast after reading all of this. Definitely inspiring to try and leverage different financing techniques! When you and your realtor partner were starting to scale up into lease options you mentioned the numbers were working in your favor after doing a costly seminar. Do you and your partner use a grassroots excel model to analyze these deals or was it bundled into what you received when you purchased the seminar package?

I was wondering if anyone on here has had any success with a USDA financing on their investment property. Although it’s not permitted to have rental properties loaned through USDA, it allows loans for Multi family housing at minimum 5 units. There’s a few other hoops to jump through (rental income capped at 30% of 115% of median income in area/ must be in a rural area). I only ask this because locking in a loan at the 10-yr Treasury rate would essentially be less than inflation, free money. Is it an administrative burden, or less of an opportunity for cash flow to even consider doing one?

@Dan M.

I appreciate your insight. I've got both feet in the water to invest in real estate. I'm not sure I feel comfortable potentially taking out two mortgages though, more concerned if I should just put down 3% and put the $50k to repairs or instead put $30k to repairs and have $20k in savings just in case. I want a good CoC return so I can have enough for another property.

I’ve been doing paralysis by analysis till my mind is numb. Ready to take the plunge but would like advice on how best to leverage my funds:

Savings: $50k

Credit: 800+

Credit card/vehicle/student loans: paid off

Location: Charlotte

Market: SFH or Duplex

I know I want to put little into this first deal but can't swallow the fact of shoveling out the PMI when I have the funds. I'm interested in putting the money towards repairs and doing a refi. Any suggestions on conventional loan or FHA? % of savings to invest in?

Thanks!

@Patricia Steiner

Got it, this helps! We’ve put a fence down the middle. Florida doesn’t lend itself to the most conducive environment for lush grass without the maintenance. Thanks again!

Hi everyone,

We have a duplex in beautiful south Florida with front and backyards. The bushes and shrubs in the backyard are a little overgrown and both sides are occupied. I was wondering if anyone on here had simple ideas for maintaining their backyard like xeroscaping or even putting in turf or a small pond in the corner. Our neighborhood is 80% blue collar workers to paint the picture so not sure which landscape would appeal most to the tenants. Just worried about keeping it nice and clean. Thank you!

@Jared Baker

Hi I’m just starting out and curious as to why you decided on an llc over an umbrella insurance policy or even a series llc, are there no annual expenses in Wisconsin or do they provide more protection than the aforementioned options?

Thank you. Tyler.

@Kurtis Delahooke Thanks Kurtis, a few comments above have hinted at the rather high HOA.

@Jacob Sampson Yes, thank you Jacob.

Mr. Stephens I am very new at all of this so forgive me if a few things sound rudimentary, but I did some research on the area, Phoenix, AR; This place is 3/1.5. My initial question: Why are you only charging $1,350? I think you might be able to 'juice' your ROE by boosting that rent up to $1,595 based on a comps analysis I performed within the surrounding area. I know that's not by much but a few hundred extra can go a long way per annum. And to address what Guifre and Fedor alluded to above, maybe if your vacancy rate is the true percentage at only 3%, you might be able to play the price elasticity demand in this market and boost the rent up; the methodology is although vacancy is low, increase the rent to break-even in the long-run. I agree with Fedor in that front-loading this investment with substantial CapEx for repairs will help long-term.

How is your credit? Are you getting the 4% from private lenders, commercial mortgage brokers? The second thing I would try doing is getting that rate as low as possible, maybe aim for 20-30 bps lower on the rate with the current economic climate.  For P&I to comprise nearly 60% of your expenses, I would think that's a rather high amount.

Note that your expenses currently show $379.58, nearly half of what you're assuming according to the 50% Rule for expenses.  May I ask what other expenses would be needed in order for the 50% Rule to prove effective?  Again, very new at all of this so I may be off on that last part. 

My very last question; 9% appreciation in expenses, rent, and value?  I am from sunny South Florida and we reached a crazy 6% property appreciation the last two years which is a great couple of years for us.  I see this is in Phoenix but are those projections accurate? Ceteris Peribus, these are normalized and will net zero with the same percentages, but I like to play conservative when I can, especially with rental income.