All Forum Posts by: James Gates

 Hey Joie,

I have a great handyman who specializes in the outdoor aspects (landscaping, yard remodels, sprinklers, etc) in the area. I use him on my own residence and he is fantastic. Message me if you would like his contact, and good luck on your project!

-James

 Hey Kamyar,

This deal looks like a dud.

The numbers do not make sense, wayyy to thin, and the risk is too great with the added variables. I would caution to walk away. 

Onto the next one!

-James 

Hey Collin! Welcome to BiggerPockets. The BRRRR method words best for purchasing a property in cash for 2 reasons.

1) Usually the home needs a significant amount of work, so a traditional lending institution will not provide a loan on the property. The property can only be purchased cash.

2) Closing Costs are expensive. In my market, to close on a hone in cash is about 1K in closing costs. When you refinance the property, that's another 3K in closing costs. 4K Total.

If you wanted to take a loan on the property when you bought it, and then refinance the property after the rehab, you would have to pay full closing costs twice, which can severely cut into your profit. 

 Absolutely Alejandro!

 Hey Seth, we don't meet on a regular schedule (yet) but we have been meeting up about once a month so far this year. We would like to make it a regular thing depending on everyone's schedule.

If you are thinking of making the trip out, I highly reccomend that you TAKE ACTION and come have amazing coffee and fantastic discussion with local investors!

Looking forward to seeing everyone there,

-James

Hey guys,

A couple local investors are meeting up this Saturday (April 27th) in Riverside at 10am for coffee, message me if you are interested!

 Hey Eric,

So my HELOC payments are interest-only with a minimum payment of $100 a month. during the initial 6 months before you refinance you will have a tenant in the property within 2-3 months that will be paying full market rent, but you will not have a mortgage on the property. Your cash flow per month during this phase will be more than enough to cover your interest-only payments as well as build a reserve for the property. I generally do not plan on taking any "profit distributions" for a rental property until the property has stabilized after the refinance. When you refinance you can pay off the HELOC in full, and then Rinse + Repeat.

-James

 Hey Mirzet! 

Our goal is $150 a door cash flow year 1. This is after accounting for mortgage, taxes, insurance, property management, vacancy, and maintenance/capex. With the markets we are investing we feel confident that this cash flow will increase yearly with rising rents and population, as well as the property appreciating with the desirability of the town. If your goal was $5000 a month you would need 33 units. I know that seems like a lot, but we already have 6 and we just started last year. It is very possible to get 30 units inside of 5 years. Also, you may find that you do not need as much cash flow as you think, and remember your cash flow number is not accounting for equity build up, inflation, or appreciation. So every 5-7 years or so when you exchange the properties via a 1031 tax-deferred exchange you are going to sharply increase your net worth and your cash flow position.

-James

Hey @Sophia Fong, I lived in Riverside for many years and am located just a few minutes away in Redlands. Like many of the posters have mentioned, Riverside is not for cash flow. It has come up a lot since the recession, but there is still likely more upside to the city with all of the new developments happening downtown. I'm actually hosting a small BP meetup in Riverside tomorrow if you are interested shoot me a message!

Hey Bryce, I am working on adding central AC split units to some properties I have in Huntsville, if you don't mind me asking what were the quotes like to add the AC units and ducts?