All Forum Posts by: Kyle Tullis

I’ve recently been going through craigslist ads and see a lot of homes that advertise “assignment of contract available”. I have no idea what this means. If anyone could clear up the buying process of something like this I’d appreciate it. I’d also like to know if any traps or things to look for on these types of deals. 

Alright thanks for the advice spoke with a broker today and they have a better deal than the banks

The average price is around 70,000. 

CoCR example-

Financing 

70,000 purchase price 20% down=14,000 down + 3,000 closing costs, 56,000 borrowed money. 

My cash spent = 17,000 Expected rent 800 Taxes and insurance 175, P&I 336 with 30 yrs at 6%.= $289 monthly income. 289X12=3,486

3486/17000=20.4% return on my cash 

Cash buy 

Bought for 70,000. 625 monthly profit 625X12=7500

7,500/70,000=10.7% return on my cash. 

I think this is the correct way to calculate if not please correct me. Unless I’m wrong anytime paying with cash will increase your cash flow because of no mortgage.

Hello BG I currently own 3 rental properties in my area but have paid for all 3 in cash. I’ve been researching and it seems like I could be doing a lot better through financing. I have plenty of cash on sidelines for down payments so that’s not an issue credit is 750+. When talking to most small banks in my area I’m running into max loan term 20 years with 6%+ interest that really kills my cash on cash return calculations even if I could extend the loan term to 30 years it would help a lot.Anytime I ask about 30 years they say they can do it but i would have to live In it for at least 6 months. I’m wondering if this is common and should just take one of these loans or if there’s better options out there and I just don’t have the knowledge to find these.

Hi guys I’m located in east Texas I currently have two rentals in Jacksonville. Each one brings in 800/month I’ve had one two years and one for a year. Purchase price for the homes were 57,000 and 59,000, paid for in cash I’m looking for cash flow so I can quit my current job. Problem is home prices seem to have gone up to the 70-90k range and I feel like the most someone would rent for would be 900. I manage my own properties so I’m saving cost there taxes are around 1400/year and insurance is 780 on current homes. I have extra cash laying around and I’m wondering if it would be beneficial to buy homes at a higher price or wait for them to go down or look elsewhere any advice would be appreciated.