All Forum Posts by: Andrew Neal

I've seen it mentioned a few times here but Leverage in real estate is key. I'd take 2-3% yearly returns on my $415,000 home over the few thousand I may have has in the stock market.

Real World Example: my wife and I bought our first home on FHA loan with roughly $20K out of pocket plus or minus fees etc. Our home was $413K. Two years later we sold for $501K and none of our proceeds were taxed. That same $20K in the bank MIGHT have earned me what? $4,200 (20K x 2 years of 10% avg growth)

@Scott Trench I have a friend who got one of his products into Home Depot, I can reach out to him and see if he may have any contacts.

Hey @Dustin Ruhl I am also interested in the Fort Wayne and surrounding areas, I would love to connect.

@Bob Okenwa thanks for the info. I am familiar with delayed financing. Would the play then be to pay for everything cash and later apply for a LOC on the new appriased value? I know that many lenders have different seasoning requirements etc. Certainly would want to have the exit strategy figured out prior to purchasing.

@Jim Goebel how did your financing workout for yours?

@Louis Collins interesting take on rentals and your market. My wife is from a small town East of Dallas and I often look at homes out there. Was never sure of the rental opportunity but then again. People need a place to live small town or not.

@Jim Goebel thanks for the response. Brentwood is in the Bay Area east of SF so yes no interest in investing here. A triplex around the corner is fully renovated on the market for 1.1 million, gross rents of about $6,400 and we are a two hour (with traffic) commute from SF. I guess the alternative would be to deploy that 100k across more than one property at a time utilizing financing (i.e. Two properties at 50k each). I like the cash approach because you can be more competitive in your offers and still pull all/most of your cash back out to have very little of your initial capital tied up in it. The overall goal is buy and hold for cash flow.

I have a question and would love to know who may have implemented this strategy or could advise for/against it. Let's say you have 100k to invest. Would it be wise to buy a lesser expensive home cash for say 70k, put in some updates for maybe 20-30k and then try and take out 80% of your money to do again? I am familiar with the Brrrr strategy however most often times people talk of buying with low or traditional down payment as opposed to buying the property and doing all the rehab with cash. Anyone have some examples of why you would or wouldn't want to do this?

@Alon Helman I'm not a lender but that loan seems complicated. If you are looking to conserve cash and plan to hold the property for a short term anyways you may want to consider doing a simple 5% down conventional. Also I thought FHA loans are for primary residences only but perhaps you will be acting as though this is your primary residence while rehabbing, I don't know your situation just my two cents.

If you count a long term ( 2 years) live in flip then yes, close. Netted 91K after all fees etc.

@Phillip Overpeck I would payoff the car. That $470 is counting against your DTI (debt to income) and will vastly change the amount you can get qualified for. Even a few hundred bucks makes a huge difference.