All Forum Posts by: Clint Jusino

Hello Everyone,

I currently have 2 rental properties averaging $3,300/month in cashflow. I have 1 mortgage in my name (about $1500/month). My income is on the lower side since I have declared smaller amounts since 2022. (I still haven't done my 2023 returns since this has been weighing the decision).

That being said, I have a goal to buy another investment property this year and possibly do the BRRR strategy or a flip to get more capital on hand. I currently have 30K cash from the cash out refi I did on another property as well that could serve as a DP.

I would love to hear thoughts on what the best course of action would be to get more cash flowing into the portfolio. I would like to possibly purchase a multiplex 2-4 units that is a proven winner when comparing costs to return. would this be ideal? if so, what would be the best way to get the money to fund this without having to do partnerships?

Below is the thorough analysis of my recent BRRR deal. Let me know your thoughts:

Buy:
- It was an off-market property, and the asking price was $232,500
- My hard-money lender said he'd finance 80% of the as-is property value.
- The as-is value was $265,000, and I was able to get a short-term loan for $212,000 (0.80 * $265,000)
- My down from hand was ($232,500 - $212,000) = $20,500
- Including the closing costs, appraisal, inspection, and all other charges, my total BUY was $32,598

Rehab:
- It was a fixer upper. Just cosmetic rehab. Fresh coat of paint, new LVP flooring, landscaping, fixtures, some basic service, and deep cleaning
- It was a total of $14,091, and it was from my pocket. Didn't go with HML/PML for this.

Refinance:
- After fixing up, the property's new appraised value (or After-Repair Value - ARV) was $312,500
- Lender was able to give me 75% of the appraised value as the conventional loan
- Conventional loan was $234,375 (0.75 * $312,500), and they gave me back the difference between this conv. loan and the short term loan ($234,375 - $212,000) = $22,375 to me as loan modification
- Refinance closing cost (incl. appraisal and others) was $13,502

Overall BRRR Analysis:
Purchase cost:           $32,598
Amount on rehab:    $14,091
Refinance closing:    $13,502
--------------------------------------------
Total in the deal:      $60,191
Loan modification:  $22,375
(Lender gave back)
--------------------------------------------
NET IN THE DEAL:   $37,816
--------------------------------------------


Why is BRRR so great compared with conventional? With just 12.10% down, I was able to get 25% equity in the property :) 

Hello, happy weekend! I thought it would be better to throw a new post here about the rent deduction question. We had an leaking issue in the last post when the previous tenants stayed for their last two weeks. It was caused by AC unit dripping. After they moved out and the new tenants soon moved in, we must have the handyman to fix the upstair carpet and board and downstair ceilings. Since the tenants usually go out to work and our handyman will have to book 3 days in a week to have the work done, the tenants want to discuss about the rent deduction or prorated rent for July. We will try to coordinate with handyman to come over the weekends, but the tenants seems will be out for weekends as well. Is it normal to give them rent discount? If so, how much should we consider, like do we need to calculate by their salaries by hour or how much day/hours spending so they will be deducted from the rent? May I have any advices from you guys? Thank you so much!

Hi everyone, 

We are a group of real estate investors that invest in rental properties overseas. We are looking to purchase the first investment property in the US (looking at a few cities). We are interested in Section 8 - going over the HUD rents and doing the math on the CoCROI we sometimes come up with 20%+ ROI (accounting for capex, repairs, vacancy, management, etc.)

Going over some of the forums here I see a lot of 10%-12% CocROI of investors with Sec8 properties. Can anyone tell me if there is something I am missing? Are the rents posted on the HUD website not the actual rents that are being paid to landlords? (assuming the property is in good condition). 

Thanks. 

Afternoon BP Fam, wanted to hear your opinion on a rental property. My friend is going to supply the money for the down payment. I will bring $0 of my own money. But, I will be finding/negotiating the deal, listing the property for rent, screening tenants, and handling all maintenance myself. I will essentially be managing the entire property/collecting rent and my friend will not have to lift a finger. 

Curious how others have split the ownership of the investment property on situations like this? Is a 50% - 50% split fair? 

I am working in land development and would like to connect with others. Let me know if there are any established meetups.

Lots of rules about boarding houses in a place like Dallas.  I'd guess it is prohibited, but there may be some exceptions. If it is is a group home, chances are you are going to need a commercial sprinkler system and fire control devices(pull alarms) and panel installed. That gets expensive.

Also you might search on the recent case of the group home coordinator/manager getting arrested for murder in Arlington.  Probably money to be made, but plenty of risk.  Let's say you rent it to an operator, and their business fails, but they leave all the residents in place.  That will be a fun eviction process and you get to be labeled as the bad guy.

In other parts of the country this is quite common, but no so common in Dallas.

I do! The best channels may depend on the market but overall these are the best ones for my markets (San Diego, Los Angeles, and San Francisco): 

1. Facebook marketplace

2. Zillow (make sure to mark it as a room) 

3. Craigslist (somehow they still are going strong)

4. Furnished Finder (great if you're near any hospitals)

5. Roomies.com

6. Airbnb (30 day minimum)

I would also give Padsplit a look and see if Dallas is a core market for them. They have some significant fees and they take control of the asset but it might be worth your time. 

In regards to the city, just reach out to your local city hall. Most likely you need to speak with the planning department and they'll tell you if it's allowed. Unless it's a very restrictive area, typically this type of housing is allowed with 30-day minimums. 

Feel free to message me if you have any more questions.