All Forum Posts by: Derrick McCoy

Thanks for the feedback all

@John Thedford I think your third option is the best option for me. I am currently hosting a Mastermind every 2 weeks to motivate others to join me in the real estate game and learn from each other. Currently there are 35 individuals hat are currently purchasing properties or has a desire to start purchasing for: buy and hold, flips or wholesales. I have several real estate agents and a finance agent that assists with the finance options for the new comers. I plan to grow the group and generate some deals from the group annually. 

@Thomas Rutkowski I never thought about the possibility of the properties going up in value. The reason for this is because I have no control over the market growth for the properties. If the properties increase in value, that is a plus that I did not bank on. I plan to hold onto these properties as long as they are generating income monthly. I put none of my own cash into the properties but I did finance the properties. Sounds like allowing the monthly rent to pay down the mortgage is the best option however, I would like to collect the full rent from the property someday.

@TJ Addison The max interest rate for the properties wrapped into one loan is 10% with the minimum interest rate being 3.75%. With that in mind, I will calculate the worst scenario of the rate maxing out at the 10% then strive to reduce the remaining balance to a point where the properties will continue to cash flow monthly.

@Don Konipol Thanks for the congrats Don. The properties have equity from the 20% down paid at purchase and monthly principal pay down.

@Franklin Romine Thanks for the advice Frank.

Yes TJ,

     I plan to pay down 1 property at a time and then stash some cash for the next market turn. I'm looking for the best strategy to pay down the loans as fast as possible. I have 1 batch of 4 properties that are rolled together under 1 loan with a balloon payment in 5 years. The 4 properties is what I plan to payoff as soon as possible due to the uncertainty of where the interest rates will change to within the next couple years. 

Thought about doing that but then I have to deal with short term capital gains unless I'mm able to find something to do a 1031 Exchange. All of the properties are worth keeping but if I would sell some, I would sell a couple at one time to an investor.

Hello BP,

     This is my first year doing buy and holds in real estate. I managed to acquire over 1 million dollars in assets this year by purchasing properties based on the 1% rule. All of the properties collected are cash flowing enough to cover the debt by 1.25% or more. Now that I have collected the properties and able to make the monthly mortgage payments and pay the investors their agreed on percentage how do I accelerate the payoff of the mortgages to collect the full rents monthly. If anyone has some proven strategies please share with me for considerations.

Derrick

Thanks Ibn,

     I will have to consider both sides as in what I have involved with the deal and what the investors has involved as well. I try to remain in the 1% rule on all purchases. This can be a challenge for most agents but after explaining the rule to them they begin to search for better deals in the market. 

Looking for Multifamily Units in Raleigh, NC but the are is very hot and the properties are usually gone after being on the market for a day. I decided to try my luck in another market. I found a Triplex with 3 bedrooms and 2 baths in Fort Valley Georgia. The property is a block from Fort Valley State University. The asking price was $169k but I managed to get the seller down to $153k. Currently Under contract with a closing date of March 31. The property has management in place and has brought in $2700 over the past 12 months. Property Management is 10% of the monthly rental income. Yes it is a student rental due to its close proximity to the university. Tenants pay all utilities and there is no HOA Fee. Property tax for the year is $2160. My question to the group; is this a deal if the inspection comes back good and the property management has their act together?

That looks amazing! Were you able to get your money back in the Fayetteville Area?

Welcome to Cary, Im currently in Cary, NC on the search for multifamily deals in the area. I'm interested in your ability to produce video's. Contact me. 

Hello all,

     New to the Bigger Pockets Community and would like to introduce myself. I am retired military that managed to aquire my first rental property from a friend that had to perform a 365 day tour of duty to Korea. I assumed the VA loan to alleviate the financial burden of paying for two properties. The purchase has proven to be very lucrative for me and I have continued to make similar purchases. I am now looking for student rentals with one mile of major universities.

     I am currently residing in the Cary North Carolina Area and looking to meet with and talk to like minded individuals. I look forward to collaborating with the Bigger Pocket Team.

Derrick