All Forum Posts by: Joey Allison

@Brandon McLendon I just completed an auction where they needed "proof of funds", but I didn't end up using the funds. I have a line of credit for my business so I moved enough money over just long enough to take a screenshot of the funds in the account. The transaction didn't close for 30 days so that gave me time to find a hard money lender. The hard money lender ended up funding 75% of the purchase price. At closing, I paid the 25% with a cashiers check. The lender is also providing funds for 100% of the cost of the rehab. 

So I just completed this deal with $22,000 of my own money which will be returned after I flip the house and/or refinance the property. Hope that helps. If you cannot move money around to show proof of funds, you may need to find cheaper auctioned properties around $30k or maybe find a private money lender that will work around that with you.

I would absolutely pay down that mortgage to the 20% LTV mark. Then invest the rest in cash flowing properties. Good luck!

What I would do is find an auction property nearby that you can flip. I know your local market is tough, but maybe you are near the border of Oregon, Nevada, or Arizona? If so, maybe you can find a property in a border town. I would find a hard money lender to buy the property. Use your $30k as the down payment. Flip the house and try to profit $20k. You can use that $20k and the $30k to buy a couple rental properties in other areas. Repeat the process if possible.

I agree with everyone else. Appreciation is nice, if only it were guaranteed. Yesterday I backed out of a deal where I could receive a 10% ROI on a multifamily property. I suspected it would be a great long term investment once I factored in expected appreciation in the area. However, the fact that appreciation is not guaranteed made me uneasy. I want 15-20% ROI on my first few MF deals as my primary goal is replacing as much income as possible as I will be losing a fair amount after selling a business. Once I have accumulated a few deals at 15-20%, then I won't have any problem taking a 10% ROI + expected appreciation.

Well noted. I’ll pass. Thank you!

@Mike Dymski they say every deal is a good deal at the right price. What rate of return would have your interest?

Hey guys, I have a deal that I can go after, but I wanted to get some Bigger Pockets perspective first. Here are the details:

The property is a duplex in a rough part of town, but the cashflow makes sense on paper. I can buy the property off the market for $80K. I would like to put $10k into the land to replace the fencing on the property and replace the ugly yards with a low/no maintenance option. After doing this, I think we can raise each rent easily by $50 on each unit to $550 each. I think the property will appraise for $100k. The duplex itself does not need to be rehabbed. The ROI on this property is 19%.

SIDE NOTE: The property has room for a third apartment to be added later.

After purchase and rehab, refinance, I would leave $16k into the deal. The property would have a net cashflow of $260 per month. That is after saving for vacancy, maintenance, cap expenditures, property management etc....

My question is, the tenants in the area would be lower class and I am not sure if the $250 per month is worth the potential revolving door of tenants or issues they may bring.

@Geordy Rostad absolutely! Love that idea 

@Jim K. 🙏🏻

@Jim K. wow, thanks for the confidence lift. I believe a lot of what you’re saying about the existence of mold throughout history. I am feeling a lot better about rolling up the sleeves and getting after this rehab. Thanks again Jim. Be well.