All Forum Posts by: Andre Taylor

Yeah I hear you about that rate. Since I focus now on Commercial property. I don't really worry about the rate like that since rates are only fixed for 5 years for me.  I am preparing to purchase 12-20 unit in the first part of the new year which will require me to refinance and I have 3.6% fixed right now but if I can recapture the hit to my cash flow in the new property then Im jumping in. I do see the feds cutting rates next year and I feel like 5% will become the new 3%. This reminds me of after the 2007/2008 housing crash. I was getting rates in the 4-5% range. the 2-3% range was a blessing in disguise due to covid but if you been investing for a long time; then you know thats not the norm.

As we know the feds are talking about doing 2 more rate hikes this year. With that info; are you changing your investing strategy for this 2nd half of the year?  Whats your outlook on the rest of the year? I personally am not phase by that; if I find a good deal that can cash flow in this current state then I am looking at it as a long term play. I do think 5% rate will become the new 3% once Feds start cutting rates in the future.

Just to add I am doing something similar in St Louis, Mo. I bought a duplex and converting to a 3 unit. Myself and architecture had to go in front of the zoning committee to get the approval since the block was designated for more SFH vs multi family. Lucky I had the alderwoman that support this so its going to come down to the zoning/building department. If you can present a good case about adding more housing then that may help but im not sure of all the rules Rhode Island

WOW Adam congrats!!!!!!!!! I would ask what do you plan to do with the profit if you do sale? If looking to buy more properties where you moving to; in order to scale your rental portfolio.. then maybe. On the flip side assuming your residence is in Orange County; you know those properties appraised aggressively but then there is the migration out of Cali as well.  For me if I was in your shoes...I would sale if I know I am going to re-invest to buy more doors... if not I would keep at least until fed cuts rates and we see even more people jump back in the market which I think prices will go up even more from where they are at.

That is a good question Kaleb!!!! I think alot of investors are thinking about this right now. If your current portfolio can handle the extra cost of debt "AND" you could make that cash flow up on the new property then it may be something to look at. I personally think right now is the good time to grab deals before the feds cut rates in 2024/2025 as economist are predicting. I think once rates go down to the 5% range that the market is about to spike again with inventory and tons of people offering on the same property. So if you can get something this market that can cash flow at higher rates; then that may be something to look into. Im looking at future deals not so much cash flow but long term play

$4700 investment. What do you gain from it? Time, extra income, etc? I would weigh those options out. 

@Account ClosedThank you all @Mike Reynolds @Carol Zeroual @Caleb Brown @Account Closed as soon as this one sells I can start on the next project which has a huge profit to make

Single Family Home

Purchase: $60,000

Renovation: $225,000

Agent Commission: $9-8k

Sale Price: $305,000

Potential Profit about $11-10K

This is a long story but I am going to shorten it and let the pictures speak. Bought this duplex converted to single family home in foreclosure at $60k in South City of ST Louis. Property had black mold in it and that led to a process of gutting the building down to the floor joists. Posted about this on BP and at the end of show 354 @Brandon Turner gave me a shoutout about it! Took about a month to gutted the building all down and then it sat while I was finishing up the refinance process on two of my rentals which took from October 2019 until late April 2020. Back in Feb 2020 I found an architecture that drafted up the plans for the new layout; and shortly after; met a mortgage broker at an investor event that was looking to fund new projects and we connected and two weeks later all the loan programs were shut down as COVID-19 made its entrance. I still pressed on and got the plans done and started on replacing the roof and this is now April 2020. After that I was at a stand still as no banks were giving construction loans out and I was still waiting on the drawings to be completed and city approved. Aug 2020 I received the drawings and at the end of Sept the local banks started to lend money again and I re-connected with the mortgage broker I met at the investor meet up before COVID shutdown. He Connected me with a local bank that took the plans and based those with comps and they gave an ARV of $265,000 and was able to loan me $170,000 which was is 70% of the ARV. Now $50k of that went to pay off the mortgage so the bank can be the first lien holder and $120,000 was for the construction but I anticipated I was going to be around $140-$150k so I was prepare to put in that difference. Construction started after Thanksgiving 2020 and first day the framer ran off with my $3500 deposit. The framer was the only contractor I never worked with but all the others ( HVAC< Roof, Electrial, Plumbing, Masonry, etc) I been working with for years so my Masonry recommended a framer and we where back up and rolling by second week of December. There where a few unknowns that ate into the potential profit. Lumber cost triple my anticipated budget as I had to reframe a whole house, the plumbing line that runs from the building to the city line had to be replace so I had to dig up the back yard and the masonry cost double as the building needed to be more structurally sound. At this point I was only concern with breaking even as I focus more on the experience I was going to get from this especially this not being your typical first flip where you literally rebuilt a home. During the process I got my real estate license so I will be the listing agent to sell this property that will go live on July 1st. All in all my confidence level as a rehabber, General Contractor and Investor is stronger as I was able to deliver and the bank was impress with what I have done; they guaranteed approval on my next project once the building has sold which I already bought the next property which I found on FB marketplace. So to be able to finally have a relationship with a bank and their confidence in me not only as a landlord but as a rehabber is priceless.. also the framer finally paid my money back as his name was circulating around the community as a bad contractor and he could not get any work so he decided to rectify things with investors and workers he ripped off.

Illinois has some of the not so friendly landlord laws so best way is to try to do a cash for keys vs spend more money to go to court and then the court allow them to stay there for a few months. Talk with the tenant and see if they are motivated to pay rent; maybe take that one month and spread across other months rent. I done that to help a tenant who was laid off due to covid and was waiting for a long time for unemployment to kick in

You can go to that local post office and give them a key for that particular mail person that does that route to enter the building for the mail. That is what I done for my one of my quads and I have deadbolt lock with the lockpad code and I dont have any issue with the tenants giving the code/key out as they are more concern about their safety so in hindsight it depends on your renters if they dont care about keeping the building secure or not.