All Forum Posts by: Zac Vaughan

Hey BP community, I am currently looking at DSCR loans and my numbers never seem to add up to BPs, and I can never get a 1:1 it's always way less than 1.

Here is an example of a property I picked out just for practice. 

BP is telling me that my NOI is $56,424 but when I do the math ($6,800x12=$81,600) - ($4,584x12=$55,008) = $26,592 NOI 

I then take that $26,592/ ($2,487x12= $29,844) = .89

I've tried this formula with numerous properties and have never been able to get over 1. Can someone please explain what I am doing wrong?

It is my understanding, when I do a subject-to, I am taking over the mortgage. My question is, will I then take over the title and own the property? If so, I will then own the equity in the house? Is that essentially how it works? Thank you!

I have made a couple of posts before but wanted to re-introduce myself since I have not been on in a while. My name is Zac and I reside in Kansas City, Mo. I currently have 10 short-term rentals, 9 of which are rental arbitrage and 1 SFH that I own myself all in the KC metro area. I have been slacking on my investing goals so I am stepping up my game and just purchased BP Pro! I would love to find a mastermind group to help one another out with accountability, analyzing deals and more. My current goal is to purchase another property within the next 30 days with either seller financing or subject-to. Would love to connect and help others out in any way I can!

As of July 7th, I am now a homeowner! 

I would appreciate everyone's opinion here. I have short-term rental arbitrages and this new house will be my 10th STR. I purchased the property for what it appraised for so it has no equity.

My question is, should I take a chunk of my profits from the STRs and build up enough equity that I can eventually take out to buy the next property or should I take a chunk of my profits and set it aside to where I have enough to purchase the next property. Thanks!

I have been working with a lender for the past 2 months now. I do not have the best credit(work in progress) and he told me he could get me pre-approved for $250,000 with 3.5% down(FHA), but I have to improve my credit by paying off debt.

I agreed and paid off just under $10,000 of debt from my business income. After getting a property under contract, it turns out we can not use my business income as proof of income and now I can only get approved for $170,000. 

After getting another property under contract, I received a message from my lender saying due to my debt to income ratio, the lender is NOW requesting 10% down instead of the original 3.5% AND the lender was still going to charge points. A $148k purchase was going to cost me $13,000 and that was just with 3.5% down, not the new 10%. 

If I would have known I needed 10% down in the first place I would have never started looking for a property. 

2 months of my time and my agent's time were completely wasted. Not only that but I spent an additional $4,000 in appraisals, inspections, and earnest that I will not be getting back. 

I told that lender I will not be using him. Any advice on how to avoid this in the future?

The roof did not meet FHA standards so it was difficult for my agent to notice that.

The earnest money is still in escrow. The seller is refusing to sign the release form due to them thinking they deserve the earnest money even though the purchase agreement states that the deposit should go back to the buyer. 

With the duplex still being in escrow, the property can't even be sold so it is really only hurting the seller, is that correct?

Thank you!!

I currently have a SFH under contract with an FHA mortgage. The purchase price is $148,000 with $5,000 in closing credit. I'm doing 3.5$ down and I have about $13.5K in closing costs with the mortgage company.

From my understanding, that $5,000 in closing cost goes towards that $13.5k so I will only have $8.5K in closing cost. Is this right or am I looking at this wrong? I am starting to second guess myself. Thank you! 

Hey guys! 

I recently had a duplex under contract. After inspections, it turns out the duplex is not up to FHA standards and the seller was unwilling to make any updates. The seller is refusing to give back my earnest deposit($2000). It has been 3-4 weeks since the cancelation of the contract. My agent is thinking that I should hire a lawyer. What should I do?

I am a 25-year-old small business owner. I focus on short-term rental arbitrage with 9 properties currently. Two of which I have partnered on. I am currently looking to purchase a property that I can short-term rent out as well and from there, start to really scale my business. 

I work a full-time job (overnights) while running my business so it is difficult for me to network and meet like-minded individuals. Most meetups are during the weekly that I can not attend and their arent a whole lot of meet-ups, that I know of, on the weekends. 

I would love to chat and network with individuals like myself!