All Forum Posts by: Brian Mineau

@Ramada Evans

Hello! That’s awesome and congratulations!

Depending on the equity you are trying to pull I would say let’s do a break even analysis and figure out exactly what we need to do for it to make sense.

I think it is wise to invest the way you are, that is how my wife and I got started about 8 years ago and we have over 300 rental doors now!

A lot of people don’t like PM companies and I get that, I have been burned more times than not by bad PMCs. However, once you find a good one it can help you get to the next level.

I would look for a 2-4 unit to start, below is a deal we closed last week.

This deal in ohio was off market, it’s worth $260,000, we locked it up for $187,000. Now this one needs 5/10k in repairs but we will get to that later.

25% (the down payment) of $187,000 is $46,750, that leaves a loan amount of $140,250, at a 4% investment rate, including taxes and insurance your total monthly payment (PITI) is $934.49

The gross rent for these 3 units are $2,800, the 10% property management is $280 take that and your PITI and that leaves $1,585.51 each month.

After a 35% expense ratio you should net $1,030.58 or $12,366.97 a year.

Your cap is $12,366.97 / $187,000 = 6.6%

Now the great thing about this deal was when we got our purchase loan upfront we also got a 5/10k rehab loan, after we do some minor cosmetic repairs we are going to wait 6 months then do a 75% cash out refinance off the new value which is the $260,000

75% of $260,000 is $195,000 which means you pay off the loan you have (the $140,250 above) the rehab of 5/10k and after those two numbers $150,250 you still have $44,750 which was only a few thousand from your original down payment, which means you put that money back in your pocket.

So within 6 months, you bought a triplex, refinanced it and got your cash out and it’s making you 12k a year. Then you can take that $44,750 and find another one ;)

@Lawrence Briggs

Congratulations

@Seth Patzer

I invested from CA all the way in Chicago and all over Ohio for the longest time. Over 200 projects.

The one thing I will say is find someone you trust and you need to visit as often as you can, if it’s a flip once a month at least, if it’s a cash flow at least visit to meet your team and then do quarterly visits.

Build your team before you buy anything.

@Alicia Marks

Absolutely we are! Between the amazing CAP rate and forced appreciation we are closing a deal a week right now!

These were the numbers on the desk last week!

our cash to close was $392,404.82 that includes the insurance for a year. The rehab is at 100k flat after we got our bids back. Basically it’s 30k for 7 HVACs

30k to turn the down stairs into 1k sq ft of office space and 2k sq ft of a 2/2 with full kitchen that will be airbnbed/leased out for company use 36k for the 6 units upstairs that’s 6k a unit to finish in full, kitchens, appliances, flooring, etc. With a small buffer that’s 100k rehab.

All in was $492,404.82

The building at a 10 cap is at $800,000 with the new units we pulled this month.

75% of $800,000 is $600,000 after our principle is paid back that puts $107,595.18 in to that company bank 🏦 account 😎

@Drew Sygit

I have worked with two property management companies that have been amazing. (Not counting my own company I started)

BTTT in Dayton, ohio. They manage over 100 doors for me and Todd Pultz goes is amazing. He is honestly, trustworthy and gets it. As an investor himself he always looks at things like we do and knows when to spend money and went to charge a tenant.

Melanie Westbrook with Sierrra desert properties in CA is the exact same way. She goes above and beyond and I always appreciate when a PMC isn’t afraid to hold tenants accountable. I was burned so many times in CA and IL because PMCs were basically afraid of tenants, Todd and Melanie are not.

@Josh M. I use rentometer to comp out all of my rentals and have never been disappointed.

@Yaniel Suarez

I would encourage you to go for the duplex or even a quad.

My property management company uses cash app and Venmo as well as always the tenants to do direct deposit into our account.

Are you solely set on investing in Florida?

@Janette Proa that’s awesome! Everyone is here to help!

@Jessica Long unfortunately on old homes this happens more than you think. I have probably replaced or repaired about 40 sewer or septic lines in over about 120 projects.

But take heart, once it’s done it’s done!

@Jose Gonzalez

We use two different guys to bid out our properties in OH. Send me a DM and I can share their info!