Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
I am getting closer to my goals! I closed on number 9 today. It is a 4/2 ranch with a 2 car attached garage. I bought it for $133,000 which is more than I have bought any of my other rentals for, but the market and rents keep improving. This home needs very little work; only a but of paint. Has new windows, newer kitchen, newer hardwood and baths.
I put 20% down with a 5/1 ARM at 4.625% and my payment with taxes and insurance is $642. The home should rent for around $1,300, maybe $1,400. There were multiple offers on the first day of course. I think being a Realtor and knowing the listing agent helped me out on this one. Asking price was $134,900.
It was purchased off of MLS just like almost all of my deals. For those saying you can't buy off MLS, I have 6 fix and flips going, 5 of which were from MLS and one from the trustee sale.
Congratulations @Mark Ferguson . I think what I like about your portfolio is that they are all very nice houses. I only have one house purchased for over $100,000 and I struggle to get $800 a month for it. Using the 50% rule you would not have cash flow, but the reality is that it costs just as much to put a roof on my $50,000 rental that I get $500 per month for as it does to put a roof on your $130,000 rental you get $1,200 a month rent for. I doubt your taxes, insurance, vacancy, repairs run more than $300 or $350 per month. Yours have the added bonus of having a high demand 2nd exit strategy of selling to home buyers. Very nicely done.
@Mark Ferguson Congrats on getting another step closer towards your ambitious goal! At what point did you approach your bank about obtaining a portfolio loan? Also, with paying down your loans so quickly how are you also obtaining the 20% down for your new purchases?
Marc, we have the exact same strategy. I use arms and I'm paying them off early. I actually love my ARMs, closing costs are less and closing itself is much less paperwork and headache. Good job!
I was going with private money because they work off stated credit, income & assets. The regular banks want too much docs/info and being self employed doesn't quite meet their requirements. How do you find portfolio lenders? I am going to ask my husband to see if his credit union is a portfolio lender...
I do not know how much the renovation costs are yet. I didn't even get a bid from my contractor. I highly suggest not doing this, I was extremely busy and didn't even realize this until the repairs were almost done. I know my contractor well and trust him, but I still need to get a bid before every job. I am estimating $15,000
I am getting closer to my goals! I closed on number 9 today. It is a 4/2 ranch with a 2 car attached garage. I bought it for $133,000 which is more than I have bought any of my other rentals for, but the market and rents keep improving. This home needs very little work; only a but of paint. Has new windows, newer kitchen, newer hardwood and baths.
I put 20% down with a 5/1 ARM at 4.625% and my payment with taxes and insurance is $642. The home should rent for around $1,300, maybe $1,400. There were multiple offers on the first day of course. I think being a Realtor and knowing the listing agent helped me out on this one. Asking price was $134,900.
It was purchased off of MLS just like almost all of my deals. For those saying you can't buy off MLS, I have 6 fix and flips going, 5 of which were from MLS and one from the trustee sale.
Thanks for the post! Sounds like you are executing a well devised plan. Keep up the good work!
@Henry M. Each property is in its own llc and I have an umbrella policy on all of them.
Hey Mark Congrats! Quick question on the LLC, Having each property on an LLC does that mean you keep a separate banking account for each? and the paperwork for each kind of overwhelming?
Mark, I sent you some advantages of a trust via PM.
This comment is for all... An LLC. will not give you the protection needed in many scenarios in regards to real estate. For those who have multiple properties, a trust should be the vehicle used for the best asset and privacy protection hands down.
Just my two pesos.
Big Henry
Hey Henry, I am sort on the same situation as Mark and really would like to protect myself a little better. would you mind sharing the infor about the trust vs llc with me? thanks
Mark, I sent you some advantages of a trust via PM.
This comment is for all... An LLC. will not give you the protection needed in many scenarios in regards to real estate. For those who have multiple properties, a trust should be the vehicle used for the best asset and privacy protection hands down.
Just my two pesos.
Big Henry
Hey Henry, I am sort on the same situation as Mark and really would like to protect myself a little better. would you mind sharing the infor about the trust vs llc with me? thanks
Gustavo,
Truth be told, both should work in conjunction with one another. One (trust) provides privacy and the ability to be creative not to mention the ability to conduct business in a much smoother fashion and the other (LLC) provides the protection.
A trust can be combined w/an LLC by the trustor/investor first conveying the property into an LLC, followed by a transfer from the LLC into the trust. Including LLC into this structure adds significant asset protection since, as a trust alone has no liability barrier but does offer anonymity.
The combination of Trusts w/LLCs can present significant hurdles to those seeking to find and sue the property owner. An expert trust builder/trust attorney providing such services can produce such a combination which allows assets and liabilities to be held in insulated compartments.