All Forum Posts by: Austin Fruechting

I think the larger shift is that the world is becoming smaller, and as such mobility of the person increases.  

Today young people graduate, get their entry level job and gain experience in their field. Then they can hop on the computer and find a job all the way across the country for advancement. 25 years ago the ability to be mobile in that manner wasn't as much of a thought. So of course more will rent until they are more established in their careers and know where they will be longer term. 

As tech increases and the world continues to become smaller, renting will continue to rise IMO. 

Ok, so let's just say $850 for the 2beds and $700 for the 1beds.  

$124,800 in annual gross rents.  

Expenses:  I would assume around 50% +/-

NOI: $62,400

CAP: 6.7%

Assuming you don't have to put anything in to it immediately. If you have to put $100k into it right away you're in it for $1,025,000 and that's a 6.1 CAP for section 8 tenants.

AND you could get a HELOC against that instant equity to fund more flips. Double win! Keep up the good work!

That's crazy.  You need to verify a lot more numbers if you're going to syndicate or wholesale this.

Gross monthly = 8900 = 106,800 per year and she's saying her net was $97k?

What do the units actually rent for?  

@Brynn Misener - absolutely it's stunning!  Flip a few more then you can flip one for yourself!

@Mike Reynolds is correct.  The $45k for the rehab is paid out in draws as work is completed.  I've used these loans a few times and if something got completed, I would pay the contractors and have them sign a lien waiver.  Then I could take the receipt and lien waiver and get reimbursed by the bank. Or I could write checks from the $45k construction account.

Lien waivers are always a must. 

The bank would inspect to make sure all work was done before the final draw.

Gr-eige... of some sort

(gray is the new beige) 

You may not get any additional rent, but it could mean a tenant chooses your property over another one. One month of less vacancy over the life of the appliances would more than make up for the cost.  Another thing to consider is stainless has different cleaning concerns. 

My mission/goal was: Achieve financial freedom and live life on my terms. 

Not much of statement, but was great inspiration/motivation. 

@Marsalis Long - good luck! Take a little notebook, make notes about everything, and figure out your offer. Even if you go forward you'll have your due diligence period to really line everything out and if something else comes up then you can adjust or back out if necessary.