All Forum Posts by: Kenneth Garrett

@Jordan Regier

A garage is definitely a benefit for storage, recreation area, etc.  The cost is not very much considering the benefits.  A two car garage depending on your market is probably 15K-20K.  Not much of a difference when it comes to a mortgage payment probably under $100 a month.  I use mine for storage of beach toys, drying rack for swim suits, storage of extra supplies and on occasion it’s an extra parking space.  It’s not used for parking very often.  Maybe once a year.  I’ve thought about making a recreation area, but my property seems to book quite easily without it.

@Sam D.

Sewer line costs very from market to market and depends on the length of the run, depth of sewer, etc.  I would confirm with the city that they are responsible for the street side or the right of way.  I have seen some cities require the owner be responsible all the way to the city main.  Where is the break, is the issue.  You’re responsible for landscaping restoration plus 50% of the cost is a nice deal for the seller.  Restoration cost  if you hire a landscaper could be $1000-$2000 depending on trees, bushes, sidewalk, etc.  I hope your getting a good deal on this.

@Clint Rasberry

If it’s your personal money then you would be a private lender. If you prorate the percentage out on an annual basis that’s a 20% return for 6 months.  A great return for you, but probably not to many people will take that deal.  If you were around 12% and maybe charge a point or two, I think you’ll get some takers.

@Breann Acuna

Instead of ROI for rental properties, I would focus more on Cash on Cash returns. As an example if your total cash layout for an investment which includes purchase price, closing costs, rehab (if applicable) and holding cost (utilities, insurance, property taxes, etc) was $45,000 then it's just simple math.

Down payment $25,000

Rehab 15,000

Holding Cost 5,000

That’s $45,000, if your cash flow after all expenses including maintenance and vacancy is $500 a month that’s $6000 a year.  Take the 45,000 divide by $6000.  It looks like this 6000/45,000= 13.33% that’s your cash on cash return.

Hope this helps.

@Anna Washburn

I started out using the BRRRR system. Using private money was a tremendous help after I had done the first two. Using private lenders helped me scale. I never used hard money.

@Marta Cieslak

Do some research first, so you can ask relevant questions.  Find out what zoning district the property is in and then look up that district to evaluate the permitted uses.  That will tell you if what you are proposing is allowed.  Make sure to check whether it’s allowed through a special use or conditional permit.  They will appreciate if you have done your homework first.  If they have a comprehensive plan look at that as well.  That plan is essentially a wish list if a property were to be developed or redeveloped what they would like to see. 

@Taelonn Harper

I use private lenders for my BRRRR projects and refinance them into a DSCR loan when I have a tenant selected. My private lender does 100% financing since I've used them numerous times. I've never used hard money.

@Ramada Evans

Instead of ROI I would use cash on cash return and profit. Cash on cash (down payment and all closing costs) should be no less then 20% and hopefully it's closer to 30%. This means at 20% all of your cash is back in 5 years. At 30% in 3.33 years. Some years will fluctuate on income, but all in all should be very good. It definitely blows away LTR profit.

@Sam Clemons

The last couple of years I have been buying my appliances at ABT in Glenview.  I can get better prices then Home Depot or Menards.

@Ryan Clouser

I does depend. If your market is a beach market, then the closer to the beach the better. You don't have to be on the beach, but a short walk will be a big benefit as well. My STR is two blocks from beach. It is located in a HOA where we have two pools, a clubhouse, workout area, tennis courts and private entrance to the beach.