All Forum Posts by: Chris Davidson

I agree with @Michael Plante. It really comes down to what your goals are. If you flip it you will have more cash for the next deal, or if you have limited time but decent income adding one LT investment now could fit your goals better. Just have to figure what your plan is and work it. 

Best of luck!

The 20% I referred to in the first post was the $176 cash left over after paying the mortgage or 176/900=.19555. I think that was where I caused confusion. As long as the ARV is 120K and you can get an 80%LTV you should be able to pull all your money out and some, and still cashflow a little if managed well.

@Christopher Reiser Sorry wasn't clear but if I am understanding your numbers above correctly I believe it will work with the BRRR strategy. 20% of 67K is 13,400(downpayment) and rehab of 15K takes you to 28,400 Cash invested with a note of 53,600. If you Refi for 96K which would be 80% of the 120K ARV 53,600 would pay off the existing note and leave 42,400 for you. You put 28,400 in the deal and so now you have an extra 14K (excluding closing cost) and should have a payment of around $724 (taxes and insurance included) with a rent of $900 leaving $176/month for operating cost.

@Gabriel Torres I haven't used Cozy in a few years as I wanted more services than they were offering at the time. However, I think you could work around it by just entering the address's and adding an A,B,etc to the end. I would just check out the other sites like RentRedi and TenantCloud. I am a fan of TenantCloud as I get to store info on appliances and like the structure of lease renewal or continuation of MTM. When I used Cozy once the lease ended it was up and I had to redo everything, and they didn't have a mobile platform yet and my tenants wanted that.

I would spend some time watching their youtube videos to get a better grasp of it and put those videos on 1.5 playback speed to save some time. Best of luck!

@Sean Dezoysa are you bringing any money to the deal? If you are bringing the downpayment and they are just holding the note the equity split would be less. If credit is the only issue I would work on finding someone with good credit willing to take a little risk. I don't know what a reasonable split is, but know if you create a win-win for each party you will be doing well.

If they are brining the downpayment and holding the note, it really then depends on what you are bringing to the table other than the deal.

@Christopher Reiser I am seeing a payment of $582 on 96K(80%LTV) 4% @20 years then 142 for taxes and insurance/ month for a total of $724. which leaves almost 20% for repairs cap-x and management. but that is at a 20 year and year 1. I would check your numbers again and see if the BRRR is possible. If not flip it and roll the rest into your next deal.

@Kimberly Gamez as an agent if you feel like wholesaling is slimy just do it for a fixed commission on the buyer side and find the buyer yourself and run the deal as an unpublished listing.

@Mark McCollum When comparing returns on an index fund, the growth is basically the whole return minus taxes. Wherewith real estate the ROI is one of many ways to look at the performance. To find the true rate of return to compare apples to apples you would need to figure your IRR (internal rate of return).

If the numbers you provided are accurate then yes a low ROI is bad. However, I believe an accurate IRR calculation on the properties will show a different picture while it does take a lot more variables such as PV of Cashflows, and appreciation along with the sale of the property.

If you want a book for understanding all the different ways to analyze property I would recommend What every real estate Investor needs to know about cash flow... and 36 other key financial measures by Frank Gallinelli

@Kimberly Gamez Buy it for 10k sell it for 20-30k.

@Patricia Guerrero in two weeks' time the quickest is to contact a Pest control company and pay for it out of pocket. The HOA will probably be slow and cause the closing not to happen on time. Otherwise, you will probably have the deal fall apart and have to go back on the market. No a fun situation, but good thing you won't have to deal with that HOA once you close.