All Forum Posts by: Chris Webb

There are several ways to finance properties. One way you can do it is by doing a 50-50 deal, so the seller gets 50% cash at closing and finances the other 50. Take a look at the lenders on One Rental at a Time YouTube channel. He has three of them with different loan products that you might be able to use. Good luck!

Look at the useful life of the major systems like AC and water heaters. Also keep an eye out for insulation. You can find a local meetup and talk with some contractors who might walk properties with you. Good luck! Also, I would not be doing my duty if I did not let you know to watch One Rental at a Time on YouTube.

Congratulations on your start! Look for @Dion McNeeley's YouTube channel and One Rental at a Time. House hacking is a great way to develop your portfolio. If it is not an option you can always look for creative financing. Keep an eye on your metrics, I use CoC return only because I want to know how hard my money is working for me. Good luck and take care.

Each area will have different CoC returns, you need to find the average and then do good deals. As far as the 2% rule, I am not sure what this means. Does it mean you should set the rents? If that is the case, I would look at area averages. Generally, owners can't set rents, the market does that.

Quote from @John Morgan:

Quote from @Chris Webb:

Quote from @John Morgan:

@Arthur Nogueira

 Now my total cashflow is $3500/month and I picked up 3 houses basically for free, not costing me any money out of pocket. I actually had about 30k left over that I didn’t use. I’m a fan of using equity just sitting there doing anything for me.

 What was the total cash into the original home? 

I was all in for 100k. Bought it with a 401k loan for 48k. Lol. Then spent 50k on the rehab I got from 0% interest rate credit cards for a year. 

One aspect that you bring into this discussion is time. Originally your CoC return was roughly 14% (14,400/100,000) then it jumps to roughly 42% at the new level. Recycling cash is the strategy to use and in order to do this, you have to give it time. 

Hi @Jesse Bruce I would look for a real estate meetup. I attend one here in Lynchburg and there are some contractors and even people who will walk a home with you and give you an estimated cost breakdown. This way, I can assess the cost based on the price per square feet and then use these calculations going forward. 

Quote from @John Morgan:

@Arthur Nogueira

I just did this. My cash flow was only $1200/month with my paid off rental. I did a cash out refi on it and bought 3 houses with the cash. Now my total cashflow is $3500/month and I picked up 3 houses basically for free, not costing me any money out of pocket. I actually had about 30k left over that I didn’t use. I’m a fan of using equity just sitting there doing anything for me.

 What was the total cash into the original home? 

I believe so. But there is a timeline and an appraisal that need to be done I think. Talk with a lender and they will be able to give you a better understanding. 

Hi @Soren Loftus, you mention that the system is broken, what does that mean to you? I am curious. 

Put yourself in the renter's shoes, how would you go about making an offer on your place? What comps in the area justify your rental price from a renter's perspective?