All Forum Posts by: Louis Porter Jr.

Robert Saunders: No, it is not Lauderhill. LOL. This is in Palm Beach.

Greg Scott: This property could be an amazing fix and rent location if my numbers are right. Even with vacancy at 15% and everything else at 10%, it still would be a money maker. A little money maker, but a money maker none the less. I am just nervous about this property in general.

So I have located a 1/1 600 sq.ft (12 wide by 50 long) C class home is a C and maybe D class area, that I think I can purchase for all cash at $25K. I would like to put in another $15K – $25K in closing cost and repairs to get it rent ready. I believe I can get the value of the location up to $65K so I can perform a cash-on-cash refinance at 70% to get all my money out. I plan to rent the place out for $750 monthly with $441.67 monthly cash flow and 8.15 Pro Forma Cap.

The real question I have is the location. It is a bad location and I mean BAD. But this deal could be AMAZING if the numbers are right. I just think the location is going to be the real obstacle to get this to work. What would you do with this information?

Have you ever send anyone who had put down as low as 5% or even 3.5% for these type of loans, Perry?

Has anyone tried or used the HomeStyle Renovation (HSR) mortgage (https://www.fanniemae.com/singlefamily/homestyle-renovation)? The loan says the amounts typically fund between 65% – 95% of a property’s purchase price and renovations. This means that typical down payments range from 5% – 35% of the loan amount. Has anyone dealt with these?

But what about a HomeStyle Renovation (HSR) mortgage (https://www.fanniemae.com/singlefamily/homestyle-renovation)? The loan amounts typically fund between 65% – 95% of a property’s purchase price and renovations. This means that typical down payments range from 5% – 35% of the loan amount. Has anyone dealt with these?

Thanks for answering, Jay. Do you know why the 20% is the "magic number" for investments? I am just curious. 

I purchased my first investment rental property (a 2/1 in Riviera Beach FL that is renting for $1,075 a month) in October of 2018. I spent nearly all the money I have (All in at a little under $35K) on getting that property, but now I want to purchase my second investment property but I only have $15K left. Is there anyway that I could get a loan where I would only have to put down 3.5% of the values of the property instead of the typical 20% for investment property? I know the 20% will get rid of PMI but I am wondering are there any sources that would do a 3.5% down on a investment property? Any help would be greatly appreciated. Thanks!

This is my first wholesale deal and I wanted to see what people think of it. Please let me know. Thanks!

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Thanks, @Greg B.. This is supposed to be a Buy and Hold rental, NOT a flip. I took your advice and changed the numbers & percentages as you suggested. This gives me a cash flow of $85.85 a month and a CASH ON CASH ROI 2.85%. 

Honestly, if something goes wrong it gives me a good cushion. Better safe than sorry, plus the money will be there if I need it or don't. But like I said, this is my first flip what would you suggest are better numbers @Greg B.?