All Forum Posts by: Chad Deberry

Looking for small community banks around town that will loan on rental properties. My first three properties were through Everbank. It was hard getting the third loan, which seems to be the case with bigger banks. Any advice is greatly appreciated.

Chad

Hey guys,

Sorry if this has been asked on the forums but I tried looking and found nothing. I'm going to do some flips with my uncle who will be doing all of the work. I will put up all of the money. Should I pay him as a contractor or is there a standard way to split profits? 

Yes included all of those except property management since I will be managing myself. However, I should probably plan for it anyway. 

10% capex

10% maintenace

8% vacancy

taxes $550

Insurance $600

There's a great rental property calculator right here in Bigger Pockets under the Tools drop box at the top. I believe you can analyze 5 deals for free if i'm not mistaken. 

Hello BP,

So I went under contract on my second rental today and looking for guidance/reassurance that i'm getting into a descent deal. It's a 3br/1.5ba within 2 minutes from downtown Jacksonville for $64k (listing price $69K). It will rent for $800. The listing price was slightly below or avg with the comps. 

After all the expenses it will cash flow $192/month. I'm having it inspected this week. When I looked at it with my realtor last week it seemed to be in pretty good shape, some small cosmetic repair if anything but for the most part looked good inside and out. After running numbers in BP calculator this deal gives me 9% pro forma cap rate and 14.4% cash on cash. 

I guess I have two questions. 

1) When analyzing a rental, what kind of cash flow are you looking for after ALL the expenses. Do you have a target number? $100? $200? etc

2) Where would you go from here? I guess part of me is worried since I can't add any immediate value. Since it's doesn't need to be rehabbed it doesn't quite fall into the BRRRR strategy. Since i'm putting 25% down is doing a cash-out refi the standard here? (after 6 months to a year of course)

Hey guys, broad question here, and I know there are a lot of variables but i'm wondering what you're looking for in terms of cash flow when buying a rental property.  For instance if it's only cash flowing around $100 after ALL the expenses are you even dealing with it? What number would you call a "deal?" By the way, i'm talking about your typical single family home (3br/1ba etc). 

I went under contract on my second rental today and looking for reassurance that i'm getting an ok deal. It's a 3br/1.5ba within 2 minutes from downtown (arlington) for $64k. After all the expenses it will cash flow $192/month. I'm having it inspected this week but when I looked at it last week it seemed to be in tip top shape. Couldn't find much wrong with it and looked good inside and out. After running numbers in BP calculator this deal gives me 9% pro forma cap rate and 14.4% COCR.

Thoughts? 

I'm looking for wholesalers as well in Jacksonville. Best way I know of is through the BP "meet" segment. 

I wrote this down and put a note on my computer. Great stuff!

I'm with the upgrade camp. It's a small fix and you want the tenant to feel like it's their home. Therefore they're happy and take better care of it. 

@Chris Webb Awesome, very inspiring.