All Forum Posts by: Will Proulx

Joseph,

I'd love to talk to you about this property. 

-Will

@Eric C. Thanks for your reply. Yeah that's the idea is that I would not have a PM, so that expense is gone, so what I was thinking is even if I'm not living completely for free it would be cheaper than what I'm paying for rent now and if everything works out when I refinance so I can get rid of that original FHA loan my plan would be to find somewhere else to live and then put a tenant in the house I had been living in/rehabbing, thereby more than doubling the rental income and having an inf ROI due to the refinance.

Hey BP members,

So I understand the concepts and numbers behind BRRRR, flipping and some other strategies but I am wondering which calculator to use, or what exceptions to make within another calculator to analyze a property I would like to acquire.

It would be sort of a househack/fixandflip/buy and hold depending on which opportunity presents itself once I am ready to move out. It's a nice 3BR1BA house which needs no major repairs and could use cosmetic upgrades such as paint, flooring, landscaping, appliance and cabinet upgrades possibly (which I will all be doing myself while living there). There is a double-wide trailer on the property as well which rents for 550 and is currently occupied, same tenant would like to stay when property is sold. 

My question is if my mortgage on the property is say 350 and it's renting for 550 won't I technically be negatively cash-flowing due to the probability that the 40% cushion initially factored into the deal will probably cause me to have to put a small amount of money in monthly? Or is this still ok due to my living in the other unit and essentially not paying any rent/full mortgage monthly?? Basically want to hear from anyone who has done an FHA loan w/ or w/out a 203k attached on a similar property or even a duplex?

Thanks in advance!

@Andrew Kerr Yeah, sounds awesome, thanks for the heads up, did a search online. Which meetup/group are you talking about specifically? We will definitely check it out. 

@Eric James Awesome. Very helpful. That's where I'm at, sort of frustrated because I've come to a point in my "self-education" in REI that I realize that the BRRRR method (if you want to get all or even all+some back out) ONLY works with downright exceptional deals....I am not discouraged by this, if anything, I'm more fired up to sniff out the deals, but man...it seems like it's gotta be WAY below market value AND be situated in an area in which upgrades will drastically increase the ARV for me to be able to make the refi work for me and continue reinvesting that money in more properties.

Thanks for your help Eric, greatly appreciated. 

@Eric James Thanks so much for your input Eric! Please expound on this as it sounds like you have experience with it and my partner and I were JUST discussing portfolio loans today. If possible, specifically explain to me if there are contingencies on portfolio loans you've used in the past? Do you have to refinance X number of properties at once? etc..

Also, I know it's sort of long, but please read through the reply I just made a couple of minutes ago..you sound like you may have some answers/corrections to make for me. 

THANKS AGAIN YOU ALL HAVE BEEN GREAT!

@Jeff Kelly @Andrew Postell @Jorge Ruiz

Sorry to blow up the thread but one more thought! The following is an excerpt from Andrew's original post...

WHICHEVER IS THE LOWER AMOUNT (super important)

I understand the caution in all this, but entertain a scenario..I'm having a very difficult time passing up cash-only deals based solely off the knowledge that the ARV really isn't going to go anywhere due to the home being livable/only needing cosmetic upgrades/being sandwiched in between 2 or 3 other units of a multiplex...I say again I'm having a hard time forgetting these deals because they would cash-flow nicely and are affordable. BUT....bearing in mind Andrew's original caution about the "lesser of the two number's" you could still get all your money back out of the deal fairly soon no?? 

(1) 25k 2BR1BA unit (sandwiched in a 5-plex), spoke with some people in the are in the game, they confirmed my inclination that the ARV would not move much...but say I have 28.5k in the deal after cosmetics and closings...The home's ARV ends up at only 32k...that leaves 24k at 75%...would it be possible to do this with the cash strategy, ending up with basically only a few thousand of your money left in the deal which will be paid off in no time by actual rental profit after all expenses??? Unless I'm totally missing something that seems like a way to get around the hassle and headache of relying totally on the accuracy of your ARV (not to mention the bank/appraisers willingness to match that when the time does come to refi) concerning the BRRRR method.

@Andrew Postell @Jorge Ruiz @Jeff Kelly

I'm having a difficult time finding ANY other good info on this particular "finance-to-self through your LLC" strategy. I am simply finding a bunch of heated debates on the efficacy of using an LLC for REI period, can't find anything about the details we have been discussing.

I am, however, coming across some discussions mentioning that a prospective lender or bank you'd be working with on the refinance may be able to see that the title on said property was slyly financed to yourself through your LLC and this could/would be likely to trigger a "Due on Sale Clause" which would screw everything up totally?? Thanks so much for all the help everyone, I'd like to keep this discussion going! 

Hi BP members,

My partner and I are starting out on our investment journey, focusing specifically on deals in Greenville, NC at the moment. My partner currently lives there most of the year. I'd love to connect with an experienced REA in or near the Greenville area, I have a few questions I'd like to run by you and would love to talk shop! Thanks for your time in reading this and best wishes in your future endeavors. 

@Andrew Postell very interesting and informative thank you so much. Any advice on who to speak with or what to search for in terms of the actual logistics of taking a loan out of the LLC? And this method would negate the delayed financing option would it not?