All Forum Posts by: Account Closed

Chase or Wells Fargo Business lines of credit. Anyone have luck getting one of these for your flipping business? I have proof of profits for over three years for our LLC flipping business. If yes did you tell them your business if flipping?

Thanks

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Originally posted by Nathan Emmert:

Originally posted by Mike P.:

As some know I mainly flip. But a buy & hold friend of mine has a property he just picked up he needs out of ASAP. No real room to flip. But rental numbers look interesting.

Single family 3/2 1128 in California. Lower income area. 1978 year home was built.

Sale Price 120,000 - needs 5K work.

If you put 25% down. Assuming 4.5%

1.25% property taxs

$40 a month insurance

Your payment all in is PITI = $700

Property was last rented for on MLS for $1550.

Thoughts. Seems to hit the 50% rule.

You're confusing the rules and guidelines. The "rule" is 2% of purchase price for monthly rents... i.e. if you're paying $125k for it, you want to rent it at $2,500 a month.

The 50% guideline is that 50% of gross rents will be spent on expenses short of debt servicing.

So if you're getting $1,550 a month, figure $775 is going to pay taxes, upkeep, maintenance, management, lawyers, vacancy, etc... the other $775 is available for debt servicing. Assuming 25% down on the $120k (likely won't be able to finance repairs), you'll have a mortgage of $90k @ 6% and 30 years your payment would be $540 a month leaving you free cash flow of $235 a month or $2,820 a year.

Given an investment of $35,000 (25% down + 5k in repairs) you're looking at a cast on cash return of $2,820 / $35,000 = 8.1%.

Looks like you'll make money but also appears there are likely better alternatives. Most on here strive for at least 15% cash on cash, some set the bar as high as 20% minimum.

Interesting. Now I see why people don't preach rentals on here that are in California.

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As some know I mainly flip. But a buy & hold friend of mine has a property he just picked up he needs out of ASAP. No real room to flip. But rental numbers look interesting.

Single family 3/2 1128 in California. Lower income area. 1978 year home was built.

Sale Price 120,000 - needs 5K work.

If you put 25% down. Assuming 4.5%

1.25% property taxs

$40 a month insurance

Your payment all in is PITI = $700

Property was last rented for on MLS for $1550.

Thoughts. Seems to hit the 50% rule.

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I have been investing in real estate since 2003. Ever since I can remember everyone always says California doesn't make much sense for rental properties. I have always agreed with this(that's why I flip)but right now in California I think buy and hold can rival any area.

Example being my last three flips.

These areas are not war zones but definitely lower income.

Triplex 105,000 - aquisition price rents for $2500

Single family 2/1 - 72,000 - aquistion price rents for $1250

Single family 3/1 - 95,000 - aquistion price rents for $1495

Obviously I sold these more than the aquistion price but still any good investor in any area will never pay retail

This seems to rival any area around the country. What am I missing here?

And plus these areas are within 45 minutes of the ocean and San Francisco. And not to far from Silicon Valley etc...

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Carlos,

Looking for a good handyman in Ft. worth around the 76134 area. Let me know.

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Greatly appreciate all the responses. This is why I love BP!!

Final part of this question is I am in California property in Ft. Worth. How would I go about taking to small claims court if I am out of state? Also as far as garnishing wages I imagine I need a judgement first. Anyone have any good contacts for me in Ft. Worth.

Lesson learned for me is to never buy out of state again. Only property I have out of state and it is my only property with headaches.

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Have a rental where tenant was on month to month section 8. Just gave notice. But she owes me $2500 for an insurance deductible I had to pay. She ran into the garage messed up the brick and a bunch of other stuff. Now that she is moving out how do I go after her for the deductible?

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All Forum Posts by: Account Closed

Account Closed has started 28 posts and replied 48 times.

Post: Flippers who run everything through their LLC

Post: Any Members from Chandler, AZ

Post: Any Members from Chandler, AZ

Post: Chase or Wells Fargo Business lines of credit

Post: Rental Analysis

Post: Rental Analysis

Post: Something not adding up

Post: Dallas / Ft Worth REI Clubs - Which do you attend?

Post: Rental

Post: Rental