All Forum Posts by: Corey Young

Hey Michael,

With just a quick pencil of your numbers, this sounds like you're at a negative balance every month. 2,900 rent- 2,889 mortgage -taxes and insurance -safety net money= MINIMUM $300+ per month in negative cash flow. 

Would you be using the negative cash flow to offset income from another source? 

How quickly can you get to market rents?

 Do you know when/where we will get the book if we bought the boot camp? Will we get it the day the classes start?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $148,000
Cash invested: $173,000

Found a FSBO. She was wanting to move out quickly. I provided the inspection and appraisal before we signed any papers. 3/2 1,700 sq/ft. All cash
Renovated for 25k.
Currently appraising for $240k

What made you interested in investing in this type of deal?

Sounded like a great deal from the start.

How did you find this deal and how did you negotiate it?

I drove by and saw the for sale sign. I told her I buy houses and can do it pain-free for her. I was transparent with all my numbers.

How did you finance this deal?

All cash

How did you add value to the deal?

New paint, termite extermination and repair, Add trim and baseboards to most of the house. Finished out a laundry room. Tore out disgusting carpet in master bedroom and put down brand new laminate plank (looks fantastic.)

What was the outcome?

Currently have it rented out.

Lessons learned? Challenges?

I didn't bother having the gas turned on before buying it, but saw the furnace was relatively new. Come to find out, the thermostat was fried so I had to replace that and a gas line to the stove. Next time I'll make sure to have all the utilities turned on or ask for additional credits for anything we might find after the fact.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nope.

Hi Andrea!

The calculator does suggest 10% but that is for cap ex usually and it is just a general guideline. 5% for every day repairs. If you plan on doing some serious remodeling in the beginning, you can effectively drop that number to 3% because everything is so new. 

Hope that helps.

Good luck!

This is what I was going to suggest. I have an agent looking casually for properties for me, but I just found a really nice deal FSBO that I did all the work for and it's worked out really well. I still like my agent and will continue to work with her, but I can't ask her to put in offers that are sometimes 60% below asking price even if that is the best offer they are going to get on their property

Congratulations on taking that first step Nicholas! Since you are primarily wanting to focus on advice for the finance side, I would suggest taking a look at Pace Morby and his creative financing videos. You can literally put $0 down and come away with a cash flowing piece of property. It's all about how you structure the deal. If you can find someone in your area that is willing to show you how ie another investor, title company, and/or lender that would probably be the way to go. 

Good luck on your journey :)

@Kat Owen I currently live and invest in East Texas. In my limited experience in the East Texas area, now is an increasingly more difficult time to invest unless you have capital or know some great creative financing options. Conventional loan interest rates will eat up way too much of your cash flow right now with 6-8% interest. I can't speak to becoming a real estate agent vs property manager because they both don't sound appealing to me given the amount of training and education involved to be good at it. I already have a full time career where I am constantly having to do research. Hope that helps a little. 

I currently invest with Grant and his company. I haven’t had any major issues. The only complaint I have is they are very slow with tax paperwork. I’ve had to request an extension two years in a row just waiting on them. 

 I didn’t. I just baked it into my numbers before buying the house. Repairs are tax deductible and I just got a better deal by showing the seller what was about to need repairs 

Welcome! Glad to have a family man in the forums. Hope to hear more soon about the steps you’re taking to ensure your family’s future 😊