All Forum Posts by: Brant Richardson

Your numbers look good to me. I use 10% for maintenance, which might be a good idea for something built in 1920.

You often hear people say "you make your money when you buy", I don't think this deal will do that for you.

As Mike D'arrigo said, many more details needed to evaluate this one. Please break down how you come up with a cash flow of $680. The seller started at 105k last August and has had it for 99k for 3 months, if it was a bargain it would be gone. Built in 1920 but it does look pretty nicely updated.

Awesome. What do you think it will rent for if you fix it up with that 15k? Have you come up with a plan for financing #12? Some people put 10 in the husbands name and another 10 in the wifes name so they can do 20 Fannie loans.

@Riley F.

William is the guy making it possible.

Nice, it's so refreshing when due diligence finds a big positive.

@Benjie DeVera ,

Account Closed

Wow, it's amazing how much things have changed since I wrote that post last September, one of my first on BP. I have learned so much reading, asking questions and listening to the Podcasts. Thank you BP community.

I ended up investing in Kansas City instead, figured I would get a little more appreciation there. I have 3 rental properties now. I have a great contact in KC who is realtor, runs my rehabs and has a property management company. Everything an out of state investor needs, and I can buy distressed properties instead of turnkey. Guess where I met him... BP.

I would still like to buy one in South Bend or Michigan City for the cash flow and to visit family as a business trip.

50% rule: 50% of rent should cover all expenses except P&I (HOA is not included in that 50% either). Assuming rent of 1500, P&I of 676 and HOA of 250.
1500/2 = 750
750-676 (p&I)= $74 cash flow before HOA fees.
74-250 (HOA)= -$176 cash flow.

@andrew

I was buying as an investor. I ended up buying in cash. The property needed substantial rehab so the 10% down Homepath loan was not applicable. I almost lost the deal trying to push through a traditional loan.

That is a bummer to not have info after 2012 but still a lot more info than I thought I had. Thaks for the link.

Thanks for letting us see your business through your eyes, great podcast as well. Really enjoy all the creative approaches you take, any size deal, any type of financing, any exit strategy, multiple markets. I was really surprised to see how you combined multiple creative options like buying subject to and selling the same property rent to own, making a profit out of a property that really wasn't a good deal. Lots to think about. Please continue this thread.