All Forum Posts by: Clifford Datan

All, 

Thank you for the feedback. I'm grateful for everyone to share their knowledge and insights, this will only lead me to success. I do have a lot more to learn and I'm hoping that this first investment home is a learning experience, thanks again!

@Eric Drum

Thank you for the advice, I appreciate it!

@Grant Schroeder

Awesome great news, I’d love to chat about feel free to send me a message!

@Tim Ryan

This is located in Phoenix, AZ and yes AirBnb is allowed. The potential rent is $2000

@Grant Schroeder

Hi I grant thanks. I’m not sure if Arizona allows that. The lender I spoke with mentioned that MI won’t go away until I’m I’ve reached 20% equity on the investment home. Although, it would be great to put only 10% down.

I currently don't have an interest rate yet for the $163k Loan. But the HELOC that we got is only paying back 1% of the total loan balance for the first 20 year draw period. After the 20 years that's when the interest starts to accrue.

In terms of paying back my HELOC, I will have to refinance within 6-12 months and make sure that positive cash flow is still coming in after we refinance

The way I see it in my head is that if I can get the property for 80% of the asking price and put a down payment of 20%, I essentially have 40% of equity to begin with after procuring the property. This helps me analyze the deal to which if we were to refinance the home, we would still be on a positive cash flow. 

Current sales price: $255k

Offer: $204k (80% of sales price)

Down payment: $40,800 (20%)

Total Loan: $163,200

Total Equity: $91,800

Estimated Mortgage with 6% interest rate : $1177

Potential LTR: $2000

Potential equity of the home after 1 year before refi and 3% appreciation:$102k

@Andrew Garcia

Thanks for the advice we are looking to purchase the investment home in Arizona. I envisioned that the offer may not be as realistic as I had hoped but I thought to ask and see what others inputs are as this will be our first investment purchase.

Hey all, my wife and I are looking to purchase our first investment homes and will be out of state. We are currently pending on our HELOC that we will be using to fund the down payment of which will be coming sometime hopefully this week.

The investment home is essentially a new construction home going for $255k. I understand that this may be a new construction home and all builders are different as well as the shifting of the market but, I was wondering to make the offer below and want to see if this is something that makes sense or if it’s not a realistic approach.

Happy for any feedback, thank you.

Current sales price: $255k

Offer: $204k (80% of sales price)

Down payment: 20%

Total Loan: $163,200

Closing Cost: Builder to pay

@Nathan G.

I understand and thanks for the insight. This is good to know. When trying to run the numbers it does seem like I need to put down more just to be and to have some cash flow. Even then my ROI would take very long unless what you mentioned about the appreciation going up it's still a gamble.

Hello,

I’m fairly new but really hungry to learn and grow my portfolio of owning some rental properties. I’m in SoCal and noticed that there are several new construction homes that are currently being developed by different builders. I’m curious, are new construction homes a good option for an investment property? I appreciate the time.