All Forum Posts by: Tyrone Marson

@Jon Whiten thank you.

So once I have my first buy and hold rented out, my intent is to pull a line of credit, secured by the equity in the property and use this to acquire more properties. Which local banks are offering competitive rates and terms on line of credits against investment properties?

@Arta Montero thanks for the tip.

@Tim Jacob thank you. The leasing fee is one month’s rent, the $100/month pm fee does not include tenant placement.

@Marlon Lacayo it is a personal line of credit leveraged against my W2 income and DTI. My plan however is to open a LOC against the rental property and use that as downpayment for another property.

@Marlon Lacayo I could also add my budgeted reserves to my cashflow to pay down credit line faster.

@Marlon Lacayo the margins are wayyyy too thin for a flip anyway. You also have to consider the 6% realtor commission

@Marlon Lacayo the pro forma numbers are as follows for the property.

buy and hold.

Rent: $1500

PITI: $626

Repairs: 6% of rent ($90)

CAPEx: 6% of rent ($90)

Vacancy: 8% of rent ($120)

PM: $100/month (Found a PM that manages for a flat fee).

Net cashflow: $472/mth (which will go towards LOC)

If I sell, then I will at least hold it for a year so that I can do a 1031 exchange.

@Michael Kissi and that is why I’m not beating up on myself about it because I have been learning a lot from it. But you know the naysayers will be quick to say I paid too much, so I diffuse that real quick by acknowledging the glaring fact.

@Marlon Lacayo why I say it’s not a home run deal is that I aspired to have 20% built in equity after renovations. The property is the Brooklyn Park area of Anne Arundel County. My numbers are as follows

PP: $108,700

Downpayment: 20%

Interest: 4% on a 30year fixed mortgage

Renovations: $36K + $1500 for appliances

ARV: $150K (very conservative, a house on the street sold for $165K 2 weeks ago)

Estimated rent: $1500 - $1600

I am not losing money but my net cashflow will go towards repayment of my credit line used for renovations, so not expecting to make any profits until about year 5