All Forum Posts by: Andrea Castor

I am in the Dayton area and depending on exactly what you are looking for there has def been some deals popping up. Are you working with a local realtor? If not, I can highly suggest ours.

Have you looked at SFHing instead of multi-families? I personally am finding all the multis to be over priced but I mainly focus south of town.

I will say though that in general, yes, the taxes really hurt the cash flow on some deals.

@ Brent Coombs, I think I'm misunderstanding what you are saying...

Are you thinking we won't be able to find a cash out refi on a condo?

Comps right now are right around $96k when averaged in the complex, so that's why I stated $90k conservatively.

We plan to buy and hold for approx. 5 yrs. I do not foresee any reason to get a property manager during that time. Worse case scenario it would be 11% and we'd still be cash + $62/mo. We have experience in a nearby similar complex and typically see longer term tenants (empty nesters or young professionals).

As for the CapEx, I may be confused on this. Being that this is a condo, I figured the only expenses that would be covered under that would be windows, furnace and water heater, all of which should be fine in the next 5 yrs. I figured in the 5% for those just in case though to be conservative and I also find the 5% vacancy very conservative as well based on my experience.

Our offer got accepted on a short sale! I'm pretty excited because this is a condo complex I've wanted a rental in for years.

Purchase price: $65k

Rehab $15k (nothing upfront but a good clean) but eventually will rehab kitchen, two full bathrooms, replace carpet with laminate wood, sliding glass door to deck

ARV: $100k

Monthly rent: $1000/mo

Taxes:           ($192)

Insurance:     ($20)

HOA: ($196)

Maint 5%:       ($50)

Vac 5%:          ($50)

____________________

NOI $492/mo

Cash on cash return $5,904/$65,000 = 9% return

In 6 mo, we plan to refi. Worse case appraises for $90k, pull 70% out ($63K).

NOI with new mortgage payment of $319/mo would be $173/mo (+~$85/mo in equity).

We do plan on managing our self so I did not include that in the numbers. We have another similar condo in the area and they are very easy to manage. Anything I'm missing before we close?

Congrats and thanks for sharing your story! Having time to coach your kid's soccer team is definitely hitting home for me because that's my goal too! My uncle owns several large complexes here in the Dayton Ohio area and this is always something I've been curious about, but didn't think you could even listen in with $100k. Glad to know there may be a way...

Congrats! Being a family of 6 ourselves, I totally understand how tough this is. Kids want it all - UA and Justice clothes, trips to Disney World and the beach every year, select sport this and that and not to mention you feel like you deserve some nice things to since you make the money. BUT, we have a big sign the second you walk in our garage door saying "CASH IN KING." It's true! We operate on envelopes and going to the grocery makes you reprioritize if you really need that $12 bag of shrimp or if you could just sub in some leftover chicken from the freezer, or if you take the time to cut a few coupons because that $6 you saved will allow you to splurge on a bucket of ice cream for the kids. Many of our friends don't get it, but they are also totally confused on how we could possibly be paying cash for our investment properties and maxing out our IRA each year. It's not magic, it takes hard work, planning and determination! Good for you for realizing this and even more awesome that you are a team in it!

One popped up in our area like this. Had just been flipped, still a great cash flow and cash on cash return. It was BEAUTIFUL! BUT, it was priced at the top of the market. I even went to the open house and wanted it so bad. I knew it would rent in a heart beat, BUT, at the end of the day I realized that by paying at the top, I only had one exit strategy and it was to rent. For me, my threshold is 70% rule AND good cash on cash return. So in the end I didn't make an offer. It's pending the 1st week.

I'm not finding a ton of info here on BP about land development so I'm not even sure if this is possible. We are personally looking for ANYTHING in a small town close to our home called Waynesville. The schools have become some of the top in our area, but are still very small (less than 100 kids per grade). Lots of people looking into the area, BUT, not a lot of real estate going on. There has been quite a bit of development of streets with 2-5 acre lots but houses are not attainable to the "typical" family and are over $400k+. There is one main builder in the area that is booming but again, custom builder $300k + lot.

Anyway, long story short, there is a farm house currently available for $850k. Comes with a horse barn as well as 66+ acres. This is way out of my price range for a typical home and way more land than I would need. But to make it attainable, I'm wondering if there is a way to divide off the land and sell/develop. Where would I even start?

We are currently in the position that we would like to buy land (2-5 acres) and build around the $350-$400k range. We currently own one rental (Value $90k loan $36k, $350/mo cash flow) and have approx $45k cash to buy one or two more. We have our eye on a few around $100k, with $400/mo cash flow (assuming 20% down 30 yr fixed mortgage) and 20% cash on cash return. We keep freaking out that it'll ruin our chances of qualifying for land/construction loan. Without these rental properties, I dont thinI we'd have issue. Gross income 4x PITI, 800+ credit scores, no other debt including student loans.

Is this something we can ask our bank? The place we typically use has $250 closing costs but is extremely conservative. That's prob my biggest worry is getting my dream plot lined up and not qualifying because we are "too far extended."  

never heard of it but I'd love details. .