All Forum Posts by: Juan C Velez

After joining BP I was able to obtain the necessary tools and info needed to buy my first property (out of state) and currently have it rented out.

It was a recently rehabbed property so I just bought it, contacted a property manager and got it rented out without needing to put any work into rehab.

For my second property I am considering attempting a BRRR. My only concern is if I'll be able to do it successfully from long distance (out of state).

I'm pretty sure I can have my property management company oversee the necessary rehab work but what I am wanting to know is if there are companies that specifically work on all aspects of rehabbing a property.

For my first BRRR I am hoping not to have to find different contractors for the different fixes if possible. Just looking for a one stop shop for all single family home rehab needs.

Does anyone know if these types of companies exists and if so, can someone please recommend one in the Indiana area?

Title company told me they can see if there is a judgment or lien on the property but they can't confirm that there isn't any open court case going on between the seller and a previously evicted tenant. 

I'm worried that if there is no lien and no judgment but there is some on going litigation that I and title company do not know about, that the property could be hit with a lien or be transferred over to the evicted tenant because he wins a case claiming he is the rightfull owner of the property for whatever reason.

Maybe unlikely but probably a valid concern right?

Good point. Just a little sad to see a full month of rent and I'm guessing the $500 inspection cost bring down the 1st year CoC return but as you've pointed out, no point in leaving certain costs out of the formula just so the number looks artificially nicer.

My property management company charges 1 month's rent for getting a tenant placed in my properties.

I assume this is an expense I should include when calculating my cash on cash return. Would you agree or should I not include it? 

If I'm trying to target a specific cash on cash %, say 10%, it will make a difference if I include that fee in the numbers.

*if it makes sense to, I would only include the fee in my year 1 CoC return calculation. Not as a yearly or monthly recurring expense.

Ok, makes sense. I'll have to find another source for funding or just have to save up the money for the next DP.  Thanks

I just purchased my first investment property and got it rented out a few days ago. Since it was my first investment property, I wanted to go through the entire process in the most straight forward way as possible before I tried any more involved techniques such as the BRRR strategy.

I purchased the property for 78k and put 20% down. It did not require much work at all and was pretty much ready to rent out.

If the property appraises for the same 78k I purchase it for, I would assume that means I have 20% equity in the house or about $15k.

Does that mean that if I can find a bank willing to do it, I should be able to take out a home equity loan or a HELOC (not sure which one the BRRR strategy calls for or if it really matters much) for the 15k or 80% of the 15k?

Maybe I'll look for something that needs some actual work for the 2nd property but is the 20% down payment I put into this first property, equity that I can tap into now so I can put towards the down payment of my next property or do I need to have more than 20% equity to be able to take out Heloc or home equity loan?

Hello,

I have a SFR under contract in Indiana. Looking to close by August 19th. I have good credit and my debt to income ratio is probably fine.

The problem I am running into is that the property is being purchased for 78k and I am wanting (and probably have to anyway) put down 20% to 25% down payment so I've had a few banks tell me the the final loan amount (minus down payment) is to small for them to be able to provide the loan.

Does anyone have any lenders they can recommend that would be able to provide me with a financing solution?

I was originally looking for a conventional 30 year fixed interest mortgage but at this point I am more concerned with actually being able to get a loan approved and being able to close on the property by August 19th so I am open to any type of financing/loan options that can help me get this deal done. Thanks!

Thanks Michael, glad to be here. 

Great lets connect. Thanks.

I am looking to purchase my first investment property. I have $20k cash to work with and my credit is good. I am guessing my best bet is to look for a SFR in the price range of 70k to 100k and use the 20k as a down payment.

I'm looking to get a property under contract soon (before the end of this month if possible).

At this point I'm just looking to get started so I'm really just looking for a property in a decent neighborhood in state (FL) or out of state (anywhere really) that will cash flow 10% to 12% .

I will be looking to higher a property management company to manage the property. Thanks.