All Forum Posts by: Jason D.

@Adrian Peterson you just need to find a different lender. Fannie mae requires 6 months, so anything beyond that is a bank condition. You can find portfolio or commercial lenders that'll do as little as 30 days.

@Daniel Hughes it depends on the age and expected lifespan of the major items. on average, with a fresh rehab, I'm reserving $75/mo for capex and $100/mo maintenance. For capex, I look at roof, HVAC, and water heater. Divide the replacement cost by the usable life, and then add 50% for things like siding, windows, driveway, etc....

@Brianne Leichliter CAP rate determines value, cash flow determines whether it fits your investment goals. You should consider both....

@Gabriel Kirkpatrick Maybe.... there are arguments for and against it. Weigh your options and see which way makes sense for you

@Cass Lowrie another wrench in your spokes is that, as I understand it, because your active (flip) income is greater than $150k, it can't be offset with passive (ie...rental) losses. It can be held over to offset passive gains, but you're still stick paying income tax on your flip income.

@Fili Aguirre your selling price minus your purchase price, minus any closing fees.

@Shel D. Sounds like you've got professional tenants. You may want to consult an attorney or run a fine tooth comb over their lease and find a way to terminate the lease. They sound like they will end up being a nightmare for you.

@Michael Manni havent used them in years, but freedom credit union is local to Philly and they used to have very competitive rates, and would lend to LLCs.

@Pope Lake the "sweet spot" is a personal decision. Less down will provide a higher COC ROI, and more down will increase cashflow.

Personally, I want as little down payment as possible, because the cash I save will, hopefully, always make a better return that the interest rate of the mortgage.

@Wayne Brooks I had a major hard money lender tell me that they wont lend to you if you dont own your primary. I was very surprised to hear this.