All Forum Posts by: Chris Webb

What is the Cash on Cash return for the building? 

I wish I knew about this earlier, I would have made plans to attend. I'm out in Lynchburg.

@Jacob St. Martin I am in Lynchburg, let me know if you want the name and number of my HVAC guy.

Chris

I just replaced my AC and Furnace for $7500 in Central Virginia. No duct work - 2300 Sqft home.

Hi @Thomas O'Donnell, I am unclear on your negative cash flow. Is this because you will be living there and not be collecting rents? If so that is fine, just analyze the deal as if you are collecting rents. If you were not living there, you would be paying rent/mortgage somewhere else. Analyzing the deal based on possible rents should allow you to see if the deal earns cash on day one when you move out. I would not bet on appreciation like we had over the past few years. I do not think prices are going to collapse like 08, but I also do not see 20% appreciation like some markets saw recently. Best of luck and always look at Cash-on-Cash to see how hard your money is working. 

I wanted to provide some context on the town of Mexico Beach. A few years back a category 5 hurricane ran right through the town. In this case it might be cheaper to build rather than buy since there might not be any inventory. I lived in Tallahassee during this time and remember the devastation. I am not sure if they did rebuild or not, since I moved to Texas short time after and did not keep up on the area.

Immediately after the storm.

A recent picture. 

Hi @Charles Seguin, I do not. I have created a cash on cash return excel spreadsheet which I use everyday to review what my return would be on a percentage basis. Once I hit my number, I verify my assumptions with my property manager, insurance agent and lender. 

I know that Steven Dao with Velocity Mortgage has a 50/40/10 product where 50% loan, 40% owner carry, and 10% down on investment properties. He does this with the YouTube channel of "One rental at a Time." At least that is where I heard it. Best of luck!

Hi @Idowu Babalola, I would look for the properties within your area. Multi families are difficult to come by in north Texas. One thing you could look at is getting a large home 5-6 beds and renting out rooms. Todd Baldwin does this in Seattle. Also, I am sure that @Lucia Rushton can help, but if she cannot let me know, I know a few agents in the area. 

Google "Dion talk Financial YouTube" and learn about his story. No BRRRR and he is financially free. Still works, but as he says "it's optional." He might give you some inspiration about moving forward. He talks about the income snowball and how it takes time at first, then it builds up. I hope this helps.