Jacksonville FL Looking for my first deal/deals
9 months ago I posted a post titled, Pulling the Trigger in 2017, where I said that I was finally done reading, listening, evaluating, etc... Well here it is July and I am not much further along than I was 9 months ago. The first part of the year was pretty hectic. I was finishing up my MBA while working full time and raising a family.
The last two weeks I've spent reviewing BP podcasts and watching Brandon's YouTube videos. One thing that really hit me in the face was one of Brandon's videos where he talked about time management. I probably spend at least 2 hours of my day checking Facebook, surfing the web, or watching Naked and Afraid. That's two hours of my day I could be using to be more active here or running test deals through the BP BRRRR calculator.
Another thing I did was to actually determine what exactly I had to invest with. In episode 40 one of the first tips was to line up your financing. So instead of estimating what I had to spend I called NavyFederal and went over what I actually had to work with.
We used the rental I have in Va Beach and come up with the following numbers to compare a HELOC to a Fixed Equity Loan.
When I run the number the HELOC seems more attractive. It's more flexable, pays down on the principle quicker, and currently has a better rate.
| Appraised Value | $210,000.00 |
| Mortgage Balance | $97,508.73 |
| Monthly Mortgage Payment + taxes and Ins. | $691.64 |
| Monthly Rent | $1,250.00 |
| Equaity Available (Appraised Value * .70 - Balance) | $49,000.00 |
| Fixed Equity Loan | 15Yr |
| Fixed Interest Rate (Current Rate) | 8.50% |
| Interest ($49,000*8.5%=$4,165/12 months) | $347.08 |
| Principal | $135.44 |
| Monthly payment | $482.52 |
| HELOC | |
| Variable Interest Rate (Current Rate) | 6.50% |
| Interest ($49,000*6.5%=$3,185/12 months) | $265.42 |
| Principal | $224.58 |
| Monthly payment | $490.00 |
During the last 7 months I've also saved up about $10,000 in cash. So my all in investment amount is about $59,000. This morning on my way into work I listened to another YouTube video from Brandon about ways to invest $65K. Buy one property, buy multiple properties, etc... Flipping back to my notes on ways Real Estate can make you money buying multiple properties not only bring in multiple lines of cash flow but also multiple Appreciation values and tax credits.
So now on to the part I am really strangling with...Find the deals. I have scoured through Zillow, Redfin, REO sites, etc... When I think I find a great deal I run it through gauntlet of calculations (1-2% rule, 50% rule, Not paying more that 70% of ARV, etc..) then that great deal isn't so great.
Is there anyone local that would like to team up or provide guidance on finding that first deal.
Thanks everyone.
Mike