All Forum Posts by: Jennifer MacDonald

I have purchased a home that will be ready for either rental or for a flip and I am trying to decide what to do.    After purchase price and renovations minus closing cost I stand to make around $20,000 if I flip this property.  I will have held the property for 45 days at that point.  

Or I could rent this property with a cash flow of $400/month with a tenant that is interested in a lease to own scenario. 

Which would be the better deal?  Thank you in advance for your advice/help.

Looking for advice on which lender is offering the better deal.  

Purchasing a HUD Home. One lender offering 5% with zero points but states they can't close it in 30 days.

Another lender offers 5.1% with 1/2 point but can close it in 30 days.  

HUD contract says a 45 day closing which puts us at March 15th.

Which is the better financing deal? This is a SFH, I will be renting it and holding on to it for some time.

Oh yes definitely! Already have the plumber on standby, thanks for the reminder though! Just FYI -I was able to get this HUD property as an investor at 82% net to HUD. That is the lowest I have seen in awhile.

Yes I did.  Waiting on the fully executed contract in order to do the full inspection.  Anxious to see what that reveals!  

I own Speed Queen washer/dryer in my personal home.  Heavy duty, old fashioned machines that don't have motherboards or other electronics that tend to burn out.  Have had 2 appliance repair men tell me they are worth the investment.  They run forever.  The delivery guys say they have never had to pick one up for repairs.  

The $100/month cap ex is based on 7%. Most of what I have read says 5 to 10% for cap ex so I just went with a middle of the road value. What % do you recommend for a 1500 sq foot SFR?

Here is the breakdown:

Rental rate: $1400

Mortgage/insurance/taxes: $850

Vacancy-$98

CapEx-$100

Repairs-$70

Property management-$125

Estimated cash flow-$150/month

JD, did you mean I paid too much for the property to be a flip?  You said rental but I think I am reading that you meant flip based on the number quotes.  

I should say I did buy with the intention of renting and possibly even making this my home in a few years.  Very desirable area just not ready to move that way yet due to my job, however, in the future for sure.  

I have purchased a single family home: 1550 sq feet, 3 bedroom, 2 bath that I initially bought for a rental. However, due to home prices in my area I'm wondering if this should be a flip instead.

Here are the numbers:

purchase price $142,000

Closing costs: $7500

Repairs/updating: $9500.00

Carrying cost: $1800 

Rental rates are $1400 for a 3 bed/2bath in this area.  

Home sales are $110/sq foot (no remodeling, as is) up to $120 sq foot with updates. 

Any thoughts or feedback? 

What is KSL if I may ask?