All Forum Posts by: Austin Smith

Thanks for responding!  I'll look into that.

I started the new year with the daily habit of contacting 10 seller's a day. Got a couple lists, skiptraced it, and set it up on RVM and text blast (I may change the text blast portion). 

The reason why I like this system so far is that it eliminates almost immediately those who are not interested and quickly has me speaking with sellers. I already have had some appointments, some scheduled, a small potential funnel, and even got one property under contract.

Problem is.....with my current budget, until deals start closing, so I often find myself not being as consistent as I would like to be.

My partner and I are going to start FB ads to keep the leads coming in. Another attempt to keep marketing dollars low.

I'm not against cold calling, it's just that the skip tracing (using REI Skip), when done on a large scale, can have a lot of wrong numbers. I'm not concerned with that, but I couldn't imagine cold calling all those wrong numbers lol

Thoughts on current strategy and where I can improve on consistency ?

Ok here's my scenario, I have a developer who's looking to build a duplex in my area. 

He's willing to sell it to me and provide a commission percentage that would be slightly above the down payment, fha. 

Looking ay numbers I'd come out of pocket nothing and after living there for a year, I'd cash flow 5-600. (Accouting for vacancy, and repairs bit considering it's a new construction I'd don't think the roof will go out in a year).

My dilemma is that I feel the price is on the high side and I also realize I have an appraisal contingency. 

Easy house hack or slow ya role? 

1. Buy 4 rental properties with nothing less than $850 a month in cashflow. 

2. Hit 10 Million in salea in my real estate business as an agent. 

3. Bring 3 agents in under my brokerage

 Excellent question so on average, about 10-15k. 

HOWEVER as an agent, I get a commission check to offset the cost so I'm only into the deal 5-9k. With 1k a month cashflow. However my equity is only 5%. Should I care about being overleveraged? 

I could care less considering the cash flow and ROI, but I also don't want to be naive. Not to mention I'm buying fairly new properties to offset risk of a major repair wiping out my cashflow.

Hello BP'ers !

I currently have 2 properties 6 units on total. One in my name, the other in my wife's. The original goal has been to buy 4 properties using our FHA/Conventional 5% down.

Should I care about over-leveraging when buying with these types of loans if the cash flow is great? (For example, buying with a 5% down loan, but cash flow is $1,000 a month). Obviously I factor in ROI and others, but I'm just talking about the equity position that is being taken.

The plan was to buy two more under conventional 5% down. 

This is seperate from any BRRR investing I'm doing.

Thoughts?

 They're both 3-family properties. 

When I move out of the unit I'm living at currently, $2,500 will be the monthly income. 

The honest 1st tier goal is 10k net cashflow. 

Average net cash flow per property I buy is about 750-1000.

Hey all just wanted to get your opinion. I'll make it nice and easy.

9 units stretched across 2 properties. 100k in equity in one, 75k in equity on the other. My wife and I bought these FHA.

The original plan was to buy two rentals with FHA, refinance, then buy two more with conv. 5% (I've already consulted with a couple underwriters and they have confirmed we can do this as long as it's a major upgrade from our current living situation - please let's not debate this part lol).

Not sure if I should:

1. Sell and now use those funds to start the process over (Doubt I would sell).

2. Continue with the plan

3. Go with an alternate plan which is to break into a cheaper market near me and use the equity as down payment via heloc.

4. Or just do all the above lol

What would you do? 

I have a short sale that came across my desk that I have started to work on for the sellers. I've wholesaled in the past, but not a short sale. Does the bank allow this?  The servicer is Mr. Cooper - formerly Nationstar Mortgage.

Has anybody done this before ?

Thanks for that insight!  @Rick Pozos . 

Not many 20k rehabs in my market. Homes are naturally big so the sq footage adds up.