All Forum Posts by: Joseph Pytcher

@Duane Angell

Yes, if you include your closing costs (which we pay for title policy), the rest is escrow fee, lender fees, deposits for your impounds, then yes the COC would go down a little bit. However, those figures are so subjective I didn't include them.

Yes, the bank will let you rent out the house after you get the loan, as long as the loan was for an investment property. I am a mortgage banker as well, so the figure I gave at 4.75% is completely obtainable as a rental, however, I obviously don't know anything about the buyer's credit scores, financial picture, etc so the rate may change based on credit scores.

The whole point of my first post is to give you the best information I can based on what I know. Obviously the rate on the loan, occupancy loss, etc will all be based on your own analysis and your own due diligence, which I can't do for you. I just tried to give as much info I can however a lot of the figures are subjective.

@Sharon Tzib

The taxes are correct. I can send you a tax cert if you don't believe me. The tax assessed values will always be lower then the appraised value. Not sure how it is in the rest of the country, but that is how it is here.

Sharon,

Yes I do mind actually. I am trying to sell a house, not asking for analysis advice.

Yes, the $1,300 is completely within the range of this area based on comps from the property management company.

If you want to provide yourself 8% vacancy, that's fine, however I have provided a 5% vacancy in this case.

For the deferred maintenance, the roof is in good shape, HVAC will be tested prior to renting, if it is broken, it will be fixed. Also, there are no foundation issues. This is a pier and beam house so even if there were foundation issues 5-10 years from now, it would be very easy to fix as there is plenty of room for crawl space. The house will be practically new so there won't be much of a maintenance expense.

As far as the taxes go, I own this house so the taxes I have provided are the taxes for 2013. Also, I noticed you are from California, we have much lower tax rates so don't be surprised at 1.8%.

@Sharon Tzib

We have discovered Rent-o-meter is not very accurate. I have confirmed that with several properties and with several real estate agents.

Yes, the house is posted online and is currently being marketed with $1300 and we have a few candidates right now going through the application process for the $1300 per month rent.

Hurst is a highly sought after area. Vacancy rates are low in this area and people tend to stay at the same home between 7-9 years on average in this area.

As far as your last concern, the 1% "rule" is really a guideline and not necessarily a rule. Hurst has seen high appreciation over the last several years because it is highly sought after so not only will you see positive cash flow but at least 2-3% appreciation per year.

@Steve Stern why do you ask?

Jesse,

If you have enough to put 20% down, go conventional. It's cheaper, no MI, and is easier to get closed. Hope that helps. I am a licensed loan officer, let me know if you have any questions.

Yes, it's possible.

Hi Steve,

No it is not on MLS as of yet.

Leased and Fully-Rehabbed Turnkey Property in Dallas/Fort Worth Area ($139,900)

This property in Hurst, Texas (in the Dallas/Fort Worth area) is ready for a busy investor looking for a solid investment. Investors do not have to deal with any of the following:

-Rehabbing: This property is fully rehabbed (details of the rehab are provided below)

-Creating a Rent-Ready Package: This property includes all appliances for the tenant.

-Financing: We have vetted lenders and will put you in contact with a reputable lender

-Property Management: We have a reputable property manager (OneProp) working on finding a tenant

-Leasing: Our property manager has several strong tenants interested in renting the property so that we can have a tenant in place for you once the rehab is complete

-Utilities: Tenant pays all utilities.

The rehab will be completed by 5/21/2014, and a tenant will move in immediately afterwards.

Property Details

Address: 524 Hurstview Drive, Hurst, TX 76053 (https://www.google.com/maps/place/524+Hurstview+Dr/@32.817411,-97.176411,17z/data=!4m2!3m1!1s0x864e7ed27d215693:0xec40dc31a408759a)

Post-Rehab Bedrooms: 3

Post-Rehab Bath: 2

Post-Rehab Garage: 2

Post-Rehab Square Feet: 1626

Sales Price: $139,900

Value of Comparable Properties:

1)$132,500 (http://www.zillow.com/homedetails/509-Patricia-Rd-Hurst-TX-76053/29134408_zpid/)

2)$132,000 (http://www.zillow.com/homedetails/773-Briarwood-Ln-Hurst-TX-76053/28920836_zpid/

3)$158,500 (http://www.zillow.com/homedetails/516-Hurstview-Dr-Hurst-TX-76053/29010743_zpid/ (property is right next door)

The Numbers

Monthly Revenue

Estimated Rent: $1,300

Monthly Expenses

Taxes: $210.77

Insurance: $81.66

Property Management Fee: $117

Homeowners’ Association Fee: $0

Maintenance: $20

Vacancy Allowance (Estimated at 5%): $65

Debt Service (Assuming 80% Loan-to-Value ($111,920) and 4.75% Interest Rate): $583.83

Cash Flow

Monthly Cash Flow: $221.74

Cash on Cash Returns (Assuming 20% Downpayment ($27,980))

9.51%

First-Year Return on Investment (Appreciation Assumed at 3% Annually)

24.51%

The purchase of this property also will provide you with two additional sources of returns:

1)Depreciation Deductions: Single-family homes may be depreciated over 27.5 years

2)Principal Reduction: Your tenant will be paying down the principal of your loan each month

The Rehab

Updated Kitchen

Updated Master and Secondary Bathrooms

Updated Floors Throughout

Fresh Paint

Complete Landscaping

Please send me a message for any more details or pictures. This project will be completed in 3 weeks and a tenant will already be in place once it's complete.

Peggy, I am a lender in Texas and can do Texas A6 (cash out) loans. If you want me to check out your deal, send me a message.

Joseph