All Forum Posts by: Thomas Shaw

Thanks for the kind words.

As for the deal itself, here are the details.

It's a normal, single family home, a 2/1(~1100 sqft), but it has a detatched garage with a add on 1/1(~450 sqft) above it.

I paid 97150 with 20% down. The closing costs were about 1500. My interest rate is 4.625 and I was charged .04 points. 30 year.

For taxes I estimated about 2700, but I expect them to actually be a couple hundred lower. I just like to be a bit on the conservative side.

For repairs, they are very very minimal. The main 2/1 needs next to nothing. It's in fantastic shape. They even threw in all appliances(which are in great shape) and a TV. It even has a small waterfall in the back yard that the previous owner installed. Also has covered parking for two cars, and the garage that the apartment sits on is a 2.5 car garage, off street)

For the garage apartment, it really only needs carpet, paint, and a new AC(window unit.) So I estimated around 3k for everything.

For expenses I just estimated 8% for vacancies, 8% for repairs, 5% for capex, and 8% for management fees(even though I plan on self managing for the foreseeable future.) For insurance I estimated 200/mo, and it came in a little lower at 180 a month.

As far as rent goes, I should, at the absolute worst case, be able to get 1400 between the two. I'm pretty confident that I can get 1600-1700 though.

That puts my ROI @ 1400/mo right at 8%, which I know is a little low, but I also felt even at this ROI that I'd be happy enough to just finally pull the trigger and learn some stuff.

At 1600/mo my ROI is just a little under 15% which I would be extremely happy with.

I'm positive I've made some mistakes along the way, but I think I'm just really happy to finally stop reading and thinking and just do it.

If anyone has any other questions, please don't hesitate to ask. 

Hey guys,

Just wanted to thank everyone that spent time answering all of my questions(some pretty bad ones too) to this point. I just closed on my first deal yesterday. 

I know this means that I'm still just starting on this journey, but I feel like it's a pretty big milestone and just wanted to share it with y'all.

@Scott Matthew C. do you mean sublet it out essentially?

@Grant Rothenburger

You're a genius. First big name bank I called got back with me(after 6PM nonetheless) and I'm already pre-approved for 30 years at 5.5%.

That's exactly what I was looking for. Thank you.

If anyone else knows of any other places with better interest, feel free to let me know.

I've actually only checked with smaller, more local banks. I guess I've always heard that they're better for/more willing to work with investors, but I'll definitely check out some of the big names now.

Thank you.

Hello,

I'm looking around for an investor friendly bank that offers a 30 year amortization without being over 6% interest. I've checked around a few places without much luck. 

When they find out it's going to be a rental property I stop getting the conventional loan rates of 4-5% for 30 years. And a 30 year makes my CoC ROI look so much better.

So, does anyone have any contacts or suggestions of places to hit up?

Thanks a lot.

I've likely got work that evening, but I will do my best to make an appearance that afternoon. Thanks for the invite.

I guess my ultimate goal. With both real estate and my day job is to retire.

I'm not one of those that hates their job. All things considered, I've got a pretty good job. But, I wouldn't say I love my job. It doesn't fulfill any of my needs(outside of money.) It is just what I do to earn a living. 

And I believe most people fall into this boat. Some genuinely loathe their job, and some(probably a smaller percent) love their job. Most of us are in the middle. 

With all of that in mine, I earn money to eventually become financially independent and no longer HAVE to work. Keeping my day job while working on RE seems to be the best way to become financially independent. At that point I'll be free to pursue anything I like and spend ALL of my time as I choose, not just the hours I'm not working.

That is the goal.

Hey guys, I found a property that I am going to take a look at. It's pretty much gutted. Would need new everything. It's a 4/2 with 2 half baths. ~2150 sqft.

I have no idea how much this would cost to rehab. I'm looking at getting it around 50k, and the ARV should hopefully be around 140-150k. That leaves me a reasonable amount to play with for rehab. Rents should be in the neighborhood of 1300-1400 dollars.

But, this would be my first deal, and to be honest I'm pretty intimidated by the size of this project. Does anyone know of any good contractors? I'm looking for good and cheap. Time isn't an issue. Or if anyone would actually be willing to come take a look at the property and give their thoughts, that would be great too.

That's really awesome @Tony Castronovo. I'm sure it's a little scary to pull the trigger on such a huge change in investment strategy. But if you handle the MFH as well as you have the SFH, I'm sure you'll do well.