All Forum Posts by: CJ M.

@Juan Martinez

Still the % mortgage to rent is very scary imo

@Nicholas Glatter

83% of rent going to mortgage seems insane! I have no idea how the average person could scale in CA with the numbers you've shared. Personally I'd sell the property and use that income $250,000 gain (plus whatever you paid originally) to invest in many doors in a different market. Appreciation is great...but you can't spend it.

Here in the Midwest you can get $500 after PITI on $1,000 rent (and properties well under $100K)

Anyway, just my opinion. Best of luck!

@Nicholas Glatter

With those numbers, honestly I would set it all aside. My guess is if you hold this property for a few years, you'll find it's negatively cashflowing over the long-term. Only $550 after that hefty of a mortgage is pretty scary imo...but maybe others can chime in as I'm in a Midwest market.

Can you refi to get your payment down? I'm assuming it's PITI and not just PI? Can you I crease rent more than $3,250?

@Jamal Jacobs

- Conventional loan

- Hard money/Private money loan

- Use HELOC funds from another property

- Portfolio loan

- Seller Financing

@Mary Jay

It's not as simple as a house costs $X and that equates to me wanting $X in cashflow.

I also look at how much time, money and stress it'll take me to get it rent ready/cashflowing? Is it in a neighborhood that will experience quick appreciation? What are average rents in the area? Can I gain significant equity in the property by forcing appreciation through rehab...or just simply buying it at a low price?

That being said, if you want some very "general" numbers, I would say I don't get excited for anything under a 30% CoC return (I shoot for 100%+ after refi). Cash flow can range from $200-$800+ depending if I refi or not...meaning higher end of cashflow if I don't refi, and lower end if I pull as much $ out of the equity as possible.

Hope this helps.

@Mary Jay

Depends on things like:

1. How much of my time will it take before I cashflow

2. CoC %

3. Cash flow

4. Neighborhood

5. Bank terms (but that's really just a component of #2 and #3)

6. How much equity I'll have in property

7. Etc., etc.

@Mary Jay

Who really cares what the interest rates are for buy and holds. Run your numbers on a deal if it meets your criteria jump on it. I have very good cash flowing properties that have rates well above 6%. Heck I'd take 20% interest if the cash flow and deal was right. People get so caught up in the rates when there are so many other components that make for a great deal.

@Alicia Marks

Within a couple months of learning about REI. I just finished RDPD and Millionaire Real Estate Investor and got laid off after relocating and buying a new condo. I was so afraid of being broke and that happening again. That fear forced me to take the leap. So glad I did!! Nearly 40 deals in 4 years now

@Matthew Paul

Thanks everyone. I like the idea of deducting from SD...so long as the place isnt complety trashed when he moves out down the road. Let me see what happens after next week. The mother is the cosigner and does not want an eviction filed under her name so said she would pay it (I'm not holding my breath however). If they don't pay by end of next week, I will post a notice

@Wayne Brooks

Can I contact someone at the city and ask them? If so, who would it be? Even my attorney was not 100% sure about the lien.