All Forum Posts by: Justin Seng

@Brandon Wieschhaus

Thanks Brandon.  I did start to read some of that info for PA.  I'll have to start to learn if this changes anything come tax time..

@Nathan Gesner

Thanks for the info Nathan!

To keep up with running my rental properties as a business and not a hobby I wanted to have business cards and for rent signs made up with a business name on them. I wasn't planning on creating an LLC yet as I only have one property so far. Is this legal or could I run into some kind of issues having a business name without a legal business in place?

@John Leavelle

Thanks again John

@John Leavelle

Thanks John.  I did mean after refi $5500.  I did not however account for the first month holding cost like you mentioned.  I am glad I posted this because it forced me to look at the bigger pocket calculators a lot closer.  

Loan Fees were closing cost for refi and it was an estimation.  I haven't found a good way to figure out closing costs yet.  I hear 3-5% is a rule of thumb.  

I will learn from my mistakes fast because they accepted my 60K offer.  I close in November!

@Chris Jensen

Chris also have inspection as a contingency so if anything crazy comes up I can back out.

@Debra Grumbach 

My agent who has many properties agreed with the 10K and the ARV is based on similar homes on the street that have recently sold. My thinking is that if I need another 2-3K I can swing it, it will just take some more of my own cash. That cash will get tied up and possibly delay a second deal but I have it if needed.

@Chris Jensen

Chris thanks for the long reply! I'm leaving hard money as an option just because if I do cash it will tie up all my cash for 6 months and I wont be able to jump on any properties if a good deal pops up.  

The 286 days had me concerned also but when we walked through with my agent who has about 15 properties we couldn't find any major issues.  We agreed on the 10K rehab.  I may do one more walk through to double check to rehab number.

I will double check all my numbers.  Thanks for all the advice.

@Christopher Phillips

Thanks for the reply.  I put cap ex and repairs together but have them separate on my analysis at $62 each.  Sewer and trash are included in the taxes for this township.  I was going to do property management myself.  Wasn't aware that I should add that in. 

Possible first investment property: BRRRR Up for $75,000 3 bed 1 bath (On market 286 days) Purchase $60K Rehab $10K Closing Costs $3K ARV $100K Cash Purchase or Hard money if it works and I can get it Refi after 6 months for 70% ARV... $70K (30 year at 3.8%) Loan Fees: $2500 Rent: $1250 Payment: $325 Cap Ex/Repairs: $125 Vacancy: $60 Insurance: $75 Taxes: $365 Cash Flow $300 Total invested $5500