All Forum Posts by: Fang Underhill
Fang Underhill has started 12 posts and replied 51 times.
Post: What is your rental equity expectation?
- Posts 54
- Votes 13
Originally posted by @Kenneth Garrett:
If your taking about the BRRRR strategy then you should shoot for 75%-80% LTV after rehab. Run your numbers so the rehab forces the equity. Although, the concept of the BRRRR strategy is to get all your money out, that is not very realistic many times. I generally end up with $5000 stuck in. This allows me to have all my money out in 12 months via the cash flow.
Will you have any cash flow after BRRRR?
Post: What is your rental equity expectation?
- Posts 54
- Votes 13
Originally posted by @Jonathan R McLaughlin:
@Fang Underhill I don’t want to go in under water, so that means the purchase price + all get ready costs including closing costs, repairs commission fees for sale need to at least equal market value so that any cash or pay down is immediately positive.
Lots of ways to do better with value add etc, but the above is a decent rule of thumb for NOT losing money
That means 6% equity in the property (that's the commission rate in dfw area)
Post: What is your rental equity expectation?
- Posts 54
- Votes 13
Hi, folks,
When you buy rentals, how much equity do you desire to have when you buy it? This equity means the margin between market value and all in price after repairs.
Thank you for your input. Let's build some passive income.
Fang
Post: Purchasing small community retail strip-good or bad?
- Posts 54
- Votes 13
Originally posted by @Marc Rice:
@Fang Underhill
I’ve heard certain stores do well in these small strips such as barbers, nail salons, etc. Could get it very discounted but you’ll want substantial holding costs to ride out vacancy
Thank you for the info. Yeah. This is our trial run. We decided to go in all cash and prepared two yrs vacancy holding cost.
Post: Purchasing small community retail strip-good or bad?
- Posts 54
- Votes 13
Originally posted by @Ethan G.:
What is the price you are looking at buying it at?
We are buying $500k-600k.
Post: Purchasing small community retail strip-good or bad?
- Posts 54
- Votes 13
Hi, everybody. Happy Sunday.
One of my past client is also an investor in Class C small strip investor. There was a small strip center by his current one is on sale for 3 y and we are going after. The retail has been hit hard by the pandemic. Do you think it is the time to buy some discounted Class C small strip and start renovating them and build some small community must needs things? Thank you for your input.
Post: Dallas Real Estate Investors - Women
- Posts 54
- Votes 13
Hayden, what kind of topics do you think she will be interested to her? I can help organizing it.
Thank you
Post: Journey to financial independence
- Posts 54
- Votes 13
Wonderful, Gualter! Would love to partner up in the future.
Post: Dallas Real Estate Investors - Women
- Posts 54
- Votes 13
Hi, I am in Dallas and would love to help promoting real estates to more women.
Post: Experience building a flex warehouse?
- Posts 54
- Votes 13
I was thinking about doing the same thing in Dallas, TX. Will keep you posted too.