All Forum Posts by: Danni Green

Hi Danni! Have you used the calculators in this site to help you determine your cash flow and Cash on Cash return? I’m not going to redo the numbers you and Carl came up with, I’ll use those. So after you refinance, you’ll have $23K. Yes you’re only getting your original $20K investment plus $3K, but that $3K is a 15% return in a short time which is much better than other investments. Monetarily, you won’t be much further ahead in your bank account but you will have your initial investment back. Plus each month you’ll be making income. Eventually you’ll have enough again for a second investment or you trade out of this SF up to a property you hoped for. Sounds like a safe and good first investment!

Hey Jamie!

I did use a deal calculator on this deal after I signed (mistake on my part) and the estimated cash flow was between 100-200 dollars every month. I don't know why I was expecting a 400 dollar cashflow on this but it is what it is LOL.

But the documents are signed - sent earnest $$ and now just waiting on the seller to close. I am now in process of trying to get a loan (25k for repairs) and OMG its so much harder than I thought. I have good credit and steady income but I've been told no by 2 banks already and I am getting nervous (due to me just being young in my career Im guessing). Anyways you didn't ask for this information but I just thought I put it out there in this atmosphere just in case anyone had some advice with that.

0 Votes

Originally posted by @Peter M.:

@Danni Green Congrats on your first deal! It sounds like you've got a great support network and if they are all telling you its a good deal, most likely it is. There's no doubt you will encounter problems and your fear will bubble to the surface but you just have to persevere through it. RE is a good investment and most likely in 5 years you will look back and laugh at how worried you were now that the property is worth 25-50% more.

Ahhhh I hope so. I'm hoping this goes good.

1 Vote

Originally posted by @Carl Millsap:

@Danni Green congratulations. Things don't always go as planned, when opportunity presents itself take it.

1. The benefit of your deal is you'll be into a property for less than it's worth. Once you complete the renovations refinance it for 80% of the value which is $48k.

a. You'll get back your initial investment $20K and the money for your renovations $25k. Now you're into the deal for no money.

b. Take the $48K from the refinance, invest in the multi-family you want to house hack.

2. I imagine you'll have a positive cashflow of a couple hundred dollars once the place is renovated and rented. Again, not a bad thing to have. Put it away for maintenance issues.

3. Thank the people who recommended you jump on this opportunity. You are the average of the 5 people you spend the most time with, sounds like you have a good group.

4. Rinse and repeat this process.

Good Luck!

Thank you Carl. For the b. portion of your reply :

b. Take the $48K from the refinance, invest in the multi-family you want to house hack.

Since I have to pay back my $25k loan (took out a loan for rehabbing). 48-25-20 (payment for the house) = $3,000 left to spare. The reason I am a bit confused is that once everything is done I feel like I will be in the same spot I started in...

But thank you again for the advice. It is appreciated.

1 Vote

Hey People,

I am pretty new to real estate investing. Just a little tiny background on me is that I'm 22 years old, new grad working as a Automation/Robotics Engineer. My family has a real estate business so while I am new to real estate investing myself, I know a lot about the business/ the market/ what needs to be done & what needs to be avoided.

I'm investing in my first property. It's really cheap (20k paid for in cash) needs an estimated 25k in repairs and estimated home value after repairs is $60k, it can also rent for $750 or more once done. It is in the area I grew up in so my family is going to be a huge help assisting in hiring of the contractors and making sure everything goes smoothly.

I'm just really nervous though. I keep thinking what if I made a bad deal... My original plan was to buy a multi family unit and house hack in the town I'm working in, but a couple of people advised me not to miss out on this deal. It took a bit to save up for my cash purchase on this house and it was supposed to be used for my original goal. But this is the way things are moving and I'm just overthinking. *sighs*

Any advice or similar stories? I am new here btw so excuse me if I am posting in the wrong thread.

BTW (might be informational, might not): I just signed the purchase agreement yesterday, but just waiting on seller to sign their portion.

7 Votes

All Forum Posts by: Danni Green

Danni Green has started 3 posts and replied 14 times.

Post: Nervous about First Deal

Post: Nervous about First Deal

Post: Nervous about First Deal

Post: Nervous about First Deal