All Forum Posts by: Alex Diaz

Does anyone have any tips on decision making for a new investor. For example trying to move the numbers around too much to make a deal work or just overall letting emotions dictate your decisions when looking for real estate and getting overwhelmed from all the other things you have on your plate at the same time as trying to start off investing, thanks in advance.

Hello everyone I’m in a tough spot at the moment, I have found a motivated seller willing to sell me their single family home at 245k in move I’m ready condition’s I have not been in the property but I am assuming it is just outdated no major repairs needed. The market value of the property is between 270k-285k as is. I’m looking to do fha and move in for a year or so afterwards rent it out although the numbers do not work the expenses would be much higher than the rent. I don’t think I can Wholesale it due to it not being at low enough price for investment property or else I would just keep it for myself but it is at a price where it would be a great deal for a retail buyer. Another thought I had was to refer it over to a realtor I know and get a referral commission (I have a real estate license) but I really want to make this deal work as an investment property for myself. Any suggestions? There is also currently a mortgage on the property but the owner has a high equity position I was told they only have 4 years left on the loan. Thanks I’m advance!

Forgot to mention taxes: $5,900/yr and insurance $840/yr

On my end I’m showing a 2.01% cash on cash return with $105 monthly cashflow with as is rents. taxes being 5900/yr repairs & maintenance 8% cap ex8% vacancy 5% management 8% 

My main concern is that when I do wish to cashout refinance (6-12months into the deal) with a traditional bank to pull my money out of the deal along with get a lower interest rate, the 5% prepayment fee will bite into my profits a bit too much

Hello I’m currently looking at a deal and would like to know what some of you think it’s a Single family home divided into 2 units with total rents of $2600 in a neighborhood I would consider  A- / B+ . There is numerous houses in the neighborhood and near the neighborhood selling for over $500K including the one right next to it that sold for $850K due to smaller houses being replaced with big newer ones. Purchase price is $283K, I do believe I can raise rents a few hundred dollars if updating is done. I am currently looking at 20% down with a 5.225% interest rate on a 30yr fixed rate since I am not eligible to go conventional or fha due to my employment history. All together I’m looking at 6K at closing + 20% down payment, and a 5% prepayment fee if I want to cashout refinance before 5 years, just wanted to get some thoughts on what more seasoned investors think given that this is my first deal. Thanks I’m advanced 

@Patricia Stiener yes although I do not have enough money for the 20% down payment.

@Joseph Cacciapaglia Thank you, I do have money put away for a deal although no where near what I would need for a 20% down on this property. I asked seller if owner financing was an option but he said no, also do you have any advice on finding a partner?

For the past months I have been searching for a duplex, I am already pre approved for $150k on an FHA I just came across an off market 4 unit building for $350k (price is negotiable) I am a new investor with no previous deals how can I go about getting financing for these kind of properties?