All Forum Posts by: Alexander Ball
Alexander Ball has started 12 posts and replied 90 times.
Post: Bought 1st Property, working 3 jobs, with 5 kids under 5 yrs old
- Ann Arbor, MI
- Posts 90
- Votes 20
>I saved up the money, was on the MLS everyday. It took about 3 months after deciding to get into real estate.<
That's great. I'm in the hard spot of selling my home while moving into a house hack situation myself. If you're on the MLS everyday, do you mean realtor.com? Or do you mean that you are licensed and you have access to the MLS?
Post: Please Help me with this
- Ann Arbor, MI
- Posts 90
- Votes 20
Im a newb here, and haven't made a deal yet, but did you sign something with the contractor saying it cant exceed 100k? How solid is that number? Could it be 150k if they find a buried problem?
Post: Subject-to and your realtor
- Ann Arbor, MI
- Posts 90
- Votes 20
I have looked at a property with my Realtor, and I have worked the numbers to a point where I can't find myself getting more than 12% COCR -- not enough for this investor, so now I am curios on how to pursue this property further.
I think I can convince this seller to make this a subject-to deal. This is a seller who is in pre-foreclosure and who bought the property in 2004 for 165k and it is now appraised at 85k ARV with about 20k in repairs.
Would my Realtor not get paid in this situation, or would she have to take a fee based comission? Is the old financing on this house too bad to want to hold on to?
Post: whats the catch?
- Ann Arbor, MI
- Posts 90
- Votes 20
And does your 20% figure already factor in inflation?
Post: whats the catch?
- Ann Arbor, MI
- Posts 90
- Votes 20
Originally posted by Wheatie:
Another way to evaluate it is to compute a cash on cash return. Take the annual actual returns after all expenses, divided by the total cash invested. If this is 4-5%, forget it. You can get that at a bank for no risk and no effort. Stocks, over the long term will give you 10% with more risk, but equally little effort. For real estate, I want to see 20% or better. Or, I want to be convinced somethings happening that will drive up prices and demand.
So if I take my NOI of $600, less my mortgage payment at 20% we have 600 - 335.62 = 264.38
cashflow x 12 = annual cashflow = 264.38 x 12 = 3172.56
Annual cashflow /total investment (repairs and principal) = 3172.56/32000 = .099145 = 10% cash on cash investment BEFORE APPRECIATION. So, does this deal depend on whether or not I can realize 10% yearly appreciation?
Post: whats the catch?
- Ann Arbor, MI
- Posts 90
- Votes 20
"Buying cash flow with a downpayment does not change the quality of the deal. "
Definitely something to consider.
Post: Is this a deal?
- Ann Arbor, MI
- Posts 90
- Votes 20
Know anywhere I can get a healthy primer on excel?
Post: whats the catch?
- Ann Arbor, MI
- Posts 90
- Votes 20
So I saw this property today. Realtor, who is a buyers agent with her own rental properties, estimates repairs at around 20k. Listed at 85k, but I am going to put in an offer of 60k. Cash flow estimates are based on a 20% down (12k principal and 48k load) 30 year loan at 7.5%. How does this look?
Rental Income = 1200 (seller said he had it at 1400 before)
Expenses:
Mortgage - 335.62
Taxes - 396 (gross I know)
Maintaince - 25
Repairs - 80
Total -- 836.62
Rent Income less expenses = 1200 subtract 836.62 = 368.38.
Total investment = principal + repairs = ~32K
32k for a 5bedroom house with comps at around 120k
In my e-mail inbox: order confirmation of Wendy Patton's lease option and subject-2 book.
Isin't the 4 loan limit avoidable? Our four properties make us income, we gain equity, and when we want to get cash out for another down payment, we refinance out the equity and THEN we can start doing sub2 or inverse purchase (whats that?)
Does the order of how we finance our properties matter?