All Forum Posts by: Adam Sieg

Ok that's probably fair. So I suppose the question would be - what amount would I have to contribute for the bank to be ok with it? or does it still need to be 20%

Alternatively, (conceptually I understand) but what if this was a partnership as opposed to a private loan? Does the bank have to look into the partners finances too if they are providing the down payment? 

I've searched through the feeds but haven't found a good answer to the question I'm searching.  I'm hoping others with more experience (or opinions) can provide thoughts and feedback. 

I have a family member interested in REI and willing to put forth $50,000 as a private loan. I'm trying to figure out how best to structure for a buy-and-hold property (that's currently my interest and only options right now).

So, if I can utilize $50k as a down payment (20%) on a $250,000 house with a potential cash flow of $800 (Cash on Cash ROI of 20%) would the following terms be acceptable - ie would you do it?

Interest rate: 8%

Loan terms: 20 years

Payment per month: $418.22

Cash on Cash ROI - 10%

The plan is to 1031 exchange in a few years, whereby the principal would either be paid back or would the terms would be discussed and revised for a better cash-flowing property.

If, I have any math errors or oversight please let me know.  Curious to get peoples feedback  

I'm looking to go for my first deal using the BRRRR method. Wanted to get peoples thoughts/opinions. Based on the realtor purchase price is $120k; rehab 10k with an ARV of $185k. Estimating a monthly rent of $1200 for a cash-flow of ~$50 but a cash on cash ROI of ~20% after refinancing. Interested to get other peoples thoughts.

Thanks

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I've done a fair amount of research on rent to retirement. Most people within BP indicate that they are satisfied or very satisfied with what they offer (eg good cash flow, strong market, solid ROI, helpful information - especially working with Zach). I'm really interested in learning more from more seasoned REI with respect to if this is a good starting platform for real estate investing? If this company/group has found these real estate investments - what has prevented you from acquiring them or moving forward with purchasing them? As a beginner, it seems like a solid "internship" in which you have something well established/evaluated that you can invest in and then build upon to further your portfolio. I'm really interested in the perceived (or actual) downside to pursuing.

thanks all

Thanks Jeff for your response and input.  I understand that there wasn't enough information to give a specific quote - was just trying to better assess whether one indicator was potentially a better predictor as well as getting peoples thoughts on the accuracy (or inaccuracy) of these "Zestimate".

Thanks

I'm curious if anyone has thoughts on the accuracy of rental property analysis from property management companies as compared to expected rent from places like zillow or realtor etc?  Obviously, the companies will try to boost up the rental to entice you to choose them as they indicate they can get this rent; however, I've had analysis done with separate companies both came back with similar figures ~$2100/month rental (they have not performed an in-depth analysis just based on location etc).  When I look at zillow or other sources it suggests a monthly rental of closer to $1800.  Full disclosure, we own the property and are renting to friends currently but are looking to transition this to an actual rental property shortly.  I'm not sure if this significantly alters the zillow quote.  

Currently looking to hire a property management company but want to make sure that I'm not paying too much.  I've looked at 2 thusfar with both charging a monthly fee (when there are tenants) but they also charge a "leasing fee" which is equivalent to the estimated rent.  I've seen loose quotes on the internet that you can expect to pay 8-12% for these services.  Based on a monthly rental income of $2000, this would give a leasing fee of $2000 + 125/month = which comes out to nearly 15% of the total rent which to me seems high.  Wanted to see if the group had any thoughts or if I should dig deeper into their coverage to see if it is warranted and if there is significant benefit to these companies. 

Thanks John!

I hadn't thought about it specifically in that context but it absolutely makes sense.  Thank you for the insight.

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $210,000
Cash invested: $15,000

Originally this was my wifes first house, which we kept after getting married and moving to a new state. We've held out hoping for long term appreciation but are looking to be more aggressive with improving cash flow.

What made you interested in investing in this type of deal?

As previously mentioned, originally a starter home which we kept and rented to friends - solely to keep in an effort to appreciate over time. Great location near a major medical center which is why we have kept the house.

How did you finance this deal?

Conventional FHA loan

What was the outcome?

Going to transition into a rental investment once current tenants move out.

I am new to BiggerPockets but excited to learn and grown my real estate knowledge!

My wife and I both had houses when we were first married.  We ended up moving almost immediately after we were married and decided to sell my house but kept hers as we thought it had a higher ceiling from a rental perspective.  It has been 3 years since we left and we've been lucky to have some friends stay in the house who paid us some money but nothing that I would constitute as rent to appease an investment property.  Our friend is getting married and will likely be moving out and we are stuck with the question of to rent it as an investment strategy or sell and begin our real estate pathway closer to where we currently live.  I have looked at various investment calculators to determine if it would be beneficial from a cash flow standpoint - but they all are based on purchase, down payment, etc and don't quite fit with our situation.  

On the one hand, as long as we aren't significantly losing money on a month to month basis I feel it best to maintain the property purely from an appreciation standpoint (strong location close to the a large medical center) with an dramatic increase in housing.  

I can provide specific numbers and figures if anyone is interested, but a quick breakdown of figures pending the rental income I believe is a good price (lower than a rental analysis I had done on the property) - we would come out essentially even annually or maybe barely in the red (if we are conservative with savings for improvements, maintenance, emergencies etc). 

I'm hopeful the community can help provide some advanced considerations for the best strategy moving forward. 

Thanks and I look forward to any advice people are willing to share!