All Forum Posts by: Chris Purcell

If the painter also did the mud you need to find someone actually qualified to do drywall mudding. Who ever did the job obviously has never mudded before and is not qualified.

Agreed. Can I just hit these spots, or is this a complete re-do?

0 Votes

BP,

Trying to finish up a rehab and hired a guy to paint. Unfortunately didn't babysit throughout the process, and was left with some pretty rough work. How do I pick up the pieces and fix these issues? Are they fix-able?

0 Votes

Originally posted by @Chris Mason:

Originally posted by @Chris Purcell:

Originally posted by @Chris Mason:

Originally posted by @Chris Purcell:

Originally posted by @Chris Mason:

Originally posted by @Tony Rodriguez:

Hello fellow investors,

I have made a decision to quit my 95K/YR job in January ’19 and move to do full time rehabs, I will have about 350K cash of my own and my living expenses are about $1800. I plan to buy in the Chicagoland suburbs area.

My plan is to buy single family homes/condos/townhomes in the $150-$200K range, spend about $20-40K in rehab. I plan to spend 2-4 months in each rehab to avoid any risk if the market changes.

My experience has been 2 flips, a single-family flip I did about 10 years ago and I’m about to finish rehabbing a 2 flat I purchased in 2014, I originally bought this property with the intention of renting in 2014 but about 9 months ago I decided to rehab and flip it do to the increase in value in the last couple of years.

I’m also in the process of getting my real estate license so that I can list the properties myself and my electrician license as I plan to do some of the rehab myself initially to increase my profits.

I plan to buy these properties cash and immediately refinance them so that I have enough cash on hand to buy the next property.

Do you guys think I’m I going to have issues trying refinance these properties without a regular paycheck? Does anybody know if small banks, credit unions and the like have these types of products and are pretty typical? in the worst case I would have to do a flip at a time but I would really like to do at least 2 at a time.

Thanks in advance!

Once your net rental income is 2.5x your personal housing expense, and you have no other consumer debts, and assuming you are only purchasing cashflow positive real estate, you can get a Fannie loan with "Landlord" as your job.

Alternatively there are programs that will lend based on the cashflow of the property only; the rate will be a tad higher.

Chris - how do you check for 2.5x rental income? Basically what are the requirements to that

Go to your local REIA, ask who is doing their mortgages, give all your paperwork to that gal or guy.

Yes. I’m saying as a lender - how do you verify 2.5x income? Leases? Bank statements? Tax returns? Do you have to have 2 years?

All of the above, but no do you not need two years.

What if the rental income is in your bank statements for 2018 but not on your tax returns for 217? Meaning you’ve built it up in the current year and haven’t reported current year taxes yet

0 Votes

Originally posted by @Chris Mason:

Originally posted by @Chris Purcell:

Originally posted by @Chris Mason:

Originally posted by @Tony Rodriguez:

Hello fellow investors,

My plan is to buy single family homes/condos/townhomes in the $150-$200K range, spend about $20-40K in rehab. I plan to spend 2-4 months in each rehab to avoid any risk if the market changes.

I plan to buy these properties cash and immediately refinance them so that I have enough cash on hand to buy the next property.

Thanks in advance!

Alternatively there are programs that will lend based on the cashflow of the property only; the rate will be a tad higher.

Chris - how do you check for 2.5x rental income? Basically what are the requirements to that

Go to your local REIA, ask who is doing their mortgages, give all your paperwork to that gal or guy.

Yes. I’m saying as a lender - how do you verify 2.5x income? Leases? Bank statements? Tax returns? Do you have to have 2 years?

0 Votes

Originally posted by @Chris Mason:

Originally posted by @Tony Rodriguez:

Hello fellow investors,

My plan is to buy single family homes/condos/townhomes in the $150-$200K range, spend about $20-40K in rehab. I plan to spend 2-4 months in each rehab to avoid any risk if the market changes.

I plan to buy these properties cash and immediately refinance them so that I have enough cash on hand to buy the next property.

Thanks in advance!

Alternatively there are programs that will lend based on the cashflow of the property only; the rate will be a tad higher.

Chris - how do you check for 2.5x rental income? Basically what are the requirements to that

0 Votes

@Beth Cannon

No that would be when a tenant doesn’t pay

Vacancy = no revenue = no entry

0 Votes

Originally posted by @Account Closed:

Oh, here is another one. The guy has a unicorn onesie pajamas and wears it with the hood up, so he looks like a unicorn. He offers the visiting buyers colored marshmallows from an easter basket when they arrive. We were dying when we heard this one.

My neighbors put up a stripper pole in the living when the for sale sign went up

0 Votes

Originally posted by @Account Closed:

I think cash flow is overrated. You need appreciation. Cash flow just pays the bills. Only way flow workd is if you self manage and do majority of your own maintenance and repairs.

If people were true to themselves and includ ALL dollars spent they will realize that 9% coc return is only 2-3%

What if you bought it for $0, cash flow every month and will have a fully paid off asset after 30 years

3 Votes

@Wendy Carpenter

Unaudited P&L and Balance Sheet

1 Vote

Originally posted by @Account Closed:

Originally posted by @Kate J.:

Account Closed Do I really have to ask my adminitrator? I am 34 and I have 330k in my retirement account. The projected amount I will have after I retire is 5.5 mil. Of course this includes taking average over the market. But I will not be cashing it out right away, in case the market drops I will wait for recovery. I think you are confusing many people here. I do invest in RE, but this is just to diversify. And yes, I can retire now, but I love my job and it pay well. What you are saying applies only to people who would enter and leave the market sponteneousely, who have no investment education. Then yes, the simplier methods you use the better.

Your Comment: "I am 34 and I have 330k in my retirement account." Correction, you USED to have $330k in your retirement account (Good job though, you are doing well and aren't part Ma & Pa investors I am talking about)

Stock Market is now down another -221 points today

Ooops, correct that: Stock Market is now down another -545 points today (That's about 1,345 points in a couple of days)

So you like real estate over stock

How unique

1 Vote

All Forum Posts by: Chris Purcell

Chris Purcell has started 23 posts and replied 721 times.

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?

Post: Picked the wrong Painter - how to fix tape seams and shoddy work?

Post: Quitting my 9-5 soon and looking for banks that refi without W2

Post: Quitting my 9-5 soon and looking for banks that refi without W2

Post: Quitting my 9-5 soon and looking for banks that refi without W2

Post: How to account for vacancy in QuickBooks

Post: Funny but not funny tenant behavior during showings.

Post: What's wrong with just cash flow?

Post: Quarterly Financial Report for Bank?

Post: Stock Market Stinks (Down -800 points Today) - Real Estate Great