All Forum Posts by: Henry Lazerow

Make sure you go to Tacos Castillo 🔥lol 

You should be sub 5% for cash out right now and not much over 5% for a heloc. Regardless, sounds like will be best to just sell with very low rent to price ratio and buy some multi units.

A lot of people miss the actual profit drivers on investments it's not just cash flow.

1) With 25% down and a 2.5% appreciation per year is a 10% return.

2) Depending on your rate mortgage paydown is at least another 5% return

Your now at 15% return not counting cash flow and with leaving 25% down. If you can refi out even half and still cash flow in a safe nice area it's a home run. With 50% refi out you are at a 30% return with zero cash flow. 

I always push first time investors towards B or A- as the numbers turn out in real life vs just on paper. Plus these the client can be happy living in and get the high returns of 5% down owner occupants financing.

What rents do you all have for C class and below? One interesting thing about Chicago is our D and F class still has $1000+ per a unit. I can't imagine how awful these would be with cap ex costs if rents were only $5-600. 

I always ask my clients why they used me the #1 answer is because I send them good deals. I also use auto search like other realtors as it's a nice addition but what's important hand pick deals and just send each client a few a month only the good ones don't go sending them every new multi unit in their price range if numbers aren't good on it. 99% of realtors are just putting investors on auto search which is also the #1 reason people have said they switched realtors. 

I always recommend clients a middle ground. Use some leverage, do a light value add, etc. It's not all or nothing. You don't need to 100% cash out BRRR to get rich in real estate but leverage is what makes real estate return higher then stocks. Mortgage rates are at 4% right now investing is very profitable with a moderate amount of leverage.

In regards to the 10k a month awesome goal!

Wanted to add to #3. Facebook Marketplace for appliances. I found great shape front loading washer and dryer for $500 from LG. Lots of nice barely used appliances on there for CHEAP. 

I'll add to that if willing to buy low down owner occupants use some of that $50k for a cosmetic rehab to force value.

VA loans are awesome for this 0 down!

It's very market specific. Find areas gentrifying that are growing at faster rate then overall US Market for a bit of a buffer. I personally don't think real estate will fall in near term but always good to be safe in your analysis.

Tell them they can stay 30 more days and give a new notice. Also tell them they need to pay or you will be suing them for back rent. I would also probably start an eviction process now as doubt they leave.