All Forum Posts by: Lacy Tilley
Lacy Tilley has started 7 posts and replied 23 times.
Post: Lender over charging? Tips? Using your tax credits?
- Cleveland Ohio
- Posts 24
- Votes 1
Hello on property number 2 everybody!
Using my previous lender which i feel may have been a mistake. This is the second time I have been "misquoted" or just "b/s'ed" about a charge that was immediately fixed.First loan (2 months ago)I was verbally quote 500 for appraisal then it went to 600, said some thing it was fixed.This loan was told me it'd be 700! (there working on fixing it now)but apparently if i had not noticed or said anything a correction would not have been made on there end.
Also lend has talked about using tax credits to buy down points... but was i was initial told was the rate ex. 5% not 5% +1.5points
Has anyone encountered these suspicions things?
Have you all noticed any thing else out of the ordinary that others should look out for?
Post: Lowering qualifications for applicants
- Cleveland Ohio
- Posts 24
- Votes 1
@Anthony Wick that was my concern. Thanks everybody for you opinions. And setting my expectations.
Post: Lowering qualifications for applicants
- Cleveland Ohio
- Posts 24
- Votes 1
1st property is bought and rehab is finished.!!
I have had it list for a week with 4 showings and no applications.
I’d say I’m in a C+ neighborhood on a very nice street. I dropped the advertised rate from 1100 to 1050 to help appeal new prospects.
I feel my qualification standards are to tight.
700 score and 3.5x income.
I’ve messaged many people and credit seems to be the big issue.
What would be the best way to lower my qualifications and can I possibly re advertise at 1100 again?
I was thinking 675 score and 3x income?
Should I re call all interested parties? I dont want any fair housing laws to be infringed as well.
Post: First Deal, am i being to optimistic?
- Cleveland Ohio
- Posts 24
- Votes 1
@Brian G. Thanks for the out look. I would be managing my self and rehabbing my self. There is not much to be fixed up and i feel my numbers there are pretty solid due to my experience and flipping my last house. My plan would be to have buy cover closing cost because I have money in reserve.
Post: First Deal, am i being to optimistic?
- Cleveland Ohio
- Posts 24
- Votes 1
First deal working on negotiation. This deal would be a duplex side by sides. rents are currently low, very low. My plan would be to go in and raise rents close to market units are in decent shape just need minor updating 5k max each unit. My concern is where i would go in. It is bad idea to go in with little cash flow per unit?
These are my numbers going in each unit 525 (seeing rent in area go for 730)
| Sale Price | $75,000.00 | ||
| Down Payment | 25% | ||
| APR %% | 5% | ||
| Closing Cost | |||
| Repair Cost | $2,500.00 | ||
| Income Info | Monthly | Anual | |
| Rent | $1,050.00 | $1,050.00 | $12,600.00 |
| Additional Unit | $0.00 | ||
| Additional Income | 0 | ||
| Total Income | $1,050.00 | $1,050.00 | $12,600.00 |
| Expenses | Monthly | Anual | |
| Mortgage | $294.44 | $294.44 | $3,533.34 |
| Property MGMT | 10% | $105.00 | $1,260.00 |
| Vaccancy | 7% | $73.50 | $882.00 |
| Repair | 8% | $84.00 | $1,008.00 |
| Capex | 10% | $105.00 | $1,260.00 |
| Utilites / MO | $0.00 | ||
| Tax / Yr | $2,900.00 | $241.67 | $2,900.00 |
| Insurance / YR | $876.00 | $73.00 | $876.00 |
| Other | $0.00 | ||
| Total Expenses | $977 | $11,719.34 | |
| Total Cash Invested | $21,250 | ||
| NOI / YR | $880.66 | ||
| Monthly Cash | $73.39 | Per Door | |
| Cash on Cash | 4.14% | $36.69 |
Potential number after renovations. 675/unit (safe numbers)
| Sale Price | $75,000.00 | ||
| Down Payment | 25% | ||
| APR %% | 5% | ||
| Closing Cost | |||
| Repair Cost | $12,500.00 | ||
| Income Info | Monthly | Anual | |
| Rent | $1,350.00 | $1,350.00 | $16,200.00 |
| Additional Unit | $0.00 | ||
| Additional Income | 0 | ||
| Total Income | $1,350.00 | $1,350.00 | $16,200.00 |
| Expenses | Monthly | Anual | |
| Mortgage | $294.44 | $294.44 | $3,533.34 |
| Property MGMT | 10% | $135.00 | $1,620.00 |
| Vaccancy | 7% | $94.50 | $1,134.00 |
| Repair | 8% | $108.00 | $1,296.00 |
| Capex | 10% | $135.00 | $1,620.00 |
| Utilites / MO | $0.00 | ||
| Tax / Yr | $2,900.00 | $241.67 | $2,900.00 |
| Insurance / YR | $876.00 | $73.00 | $876.00 |
| Other | $0.00 | ||
| Total Expenses | $1,082 | $12,979.34 | |
| Total Cash Invested | $31,250 | ||
| NOI / YR | $3,220.66 | ||
| Monthly Cash | $268.39 | Per Door | |
| Cash on Cash | 10.31% | $134.19 |
Any input would be great! (Properties would definitely apprises for 100K)
I have done one live in Flip which worked out very nicely, would be using profits to fund this deal
Would you do this deal?
Post: Good Cash flow calculator for iPhone?
- Cleveland Ohio
- Posts 24
- Votes 1
@Brad Penley you can move your excel to google sheets
@Mario Perkins That's the objective!
Post: Live-In Flip Advice for a Newbie
- Cleveland Ohio
- Posts 24
- Votes 1
Not your area but Ohio. Best advice if you dont have connection. Is First Look Owner Occupant homes on the mls!
I used HUD 5 % down on a 64k house. (bad house, no basement out dated GOOD VERY GOOD neighborhood)
If you find a stellar deal through owner occupant ( like this one was) do not offer less than asking. You will probably lose it.
MLS listed used the selling realtor.
Post: BRRRR: Does 20% down also work for this strategy
- Cleveland Ohio
- Posts 24
- Votes 1
BRRR could work with any percent down. Depending on your buy. My live in fix and flip was 3.5%down on 64k house. . ARV was 142. After repairs i was able to get a 55300 HELOC. Which allowed me to put the mom and grams into a duplex. With 20k left in my heloc im under contract to the sell house @151K.
I bought my first house from HUD and lived in it while it was being fix. Bad house in a good neighborhood. Instant equity bought for 64k now under contract for 151K.