All Forum Posts by: John Sween
John Sween has started 7 posts and replied 20 times.
Post: My first buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @Mark Cruse:
@John Sween you probably need to teach classes on this. That may be one one of the best deals on Bigger Pockets history.
Thank you sir!!
Post: My first buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @Mark Cruse:
To net this much on your first buy and hold these days is incredible. Its very good for seasoned veterans. Congrats. Just curious; how did you determine what you net on each door? Just even dividing?
It going to drop because I am going to refi it. But you get the idea.
Post: My first buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @John Sween:
Quote from @Phuong Nguyen:
How did you cashflow positive on that? How much did you down to get that cashflow?
$2000.00 Only. Swear to god.
No private money only myself. FHA (6 years ago) 3.5 down NH first time home buyers program gave me 3% of the loan and I only had to put .5% down which was 2K. A year later refied. it.
Post: My first buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @Phuong Nguyen:
How did you cashflow positive on that? How much did you down to get that cashflow?
$2000.00 Only. Swear to god.
Post: My first buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @Mark Cruse:
To net this much on your first buy and hold these days is incredible. Its very good for seasoned veterans. Congrats. Just curious; how did you determine what you net on each door? Just even dividing?
I did it by my gross rent -subtract mortgage- subtract property manager 10% -subtract 20% for issues, vacancies, repairs ect which gave me my net per door. Now I save it all. Every month but if there was ever a bind, I would feel comfortable taking that amount per door to spend. Hope this helps!
Post: My first buy and hold.
- Investor
- Posts 21
- Votes 10
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Manchester.
Purchase price: $321,000
3 Unit multifamily that cashflows net $2400 a month. $800 per door.
What made you interested in investing in this type of deal?
Passive income.
How did you find this deal and how did you negotiate it?
Zillow and I offered 10k over asking but seller paid closing.
How did you finance this deal?
FHA
How did you add value to the deal?
New floors, updates electrical, new paint and finished the attic.
What was the outcome?
Great buy and hold.
Post: When buying a multi family with 25% down.
- Investor
- Posts 21
- Votes 10
When buying a multi family with 25% down, what is the best way to receive most of your down payment back? Thank you for the knowledge.
Post: My 1st ever buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @Jonathan R McLaughlin:
@John Sween
Wait a minute, a 3 family in NH cash flowing 5100 a month? I don’t think that’s right. Sounds like gross income?
If you define cash flow as gross income minus all expenses including debt service and repair/vacancy/capex reserves of about 20% what does that leave you with? Taxes?
You are at about 1800 a unit GI, it would be a home run to be above 250 a unit using that accepted definition. Also, don’t be shocked by the tax reevaluation to the new purchase price valuation.
Still sounds like a wonderful price to income ratio so congrats.
Thank you! So yes I’m about at $700 net per unit! $700 cash flow per unit. What are your recommendations? Thank you!
Post: My 1st ever buy and hold.
- Investor
- Posts 21
- Votes 10
Quote from @Jonathan R McLaughlin:
@John Sween
Wait a minute, a 3 family in NH cash flowing 5100 a month? I don’t think that’s right. Sounds like gross income?
Yes gross! My fault! Netting about $2600
If you define cash flow as gross income minus all expenses including debt service and repair/vacancy/capex reserves of about 20% what does that leave you with? Taxes?
You are at about 1800 a unit GI, it would be a home run to be above 250 a unit using that accepted definition. Also, don’t be shocked by the tax reevaluation to the new purchase price valuation.
Still sounds like a wonderful price to income ratio so congrats.
Post: What's the move here... Advice?
- Investor
- Posts 21
- Votes 10
Option 1 – Regular Saving/ No new action
Save approximately $7,000 per month. To reach the same $90,000 would take almost 13 months of savings.
Option 2 – Cash out of my primary residence / Buy quickly if something is found.
Cash flow increase by about $1800-2300 per month depending on rents and accounting for property manager.
So New savings goes to $8800-$9300 x 13 months = $114,400 - $120,900
Option 3 – Cash out/ Cant find any property within 13 months
Cash flow decreases by $1,500. Total cash to purchase increases $90,000.
$5,500 x 13 months = $71,500 + $90,000 from cash out = $161,500.
With option 1, you don’t have the ability to purchase if something shows up on market.
With option 2, you increase your cash flow and gain an equity-growing asset.
With option 3, you are still ahead of the savings in option 1 and you have the opportunity if there is something that comes to market.
I own (2) houses say A and B. My interest rates will go from House A- 2.35% to 5%. House B- 3.5% to 5% as well. The biggest thing that is killing me is the interest rates. I probably wont see them this low for a while.