All Forum Posts by: Louise A.

@Glenn Russo

I haven't used Amazon Services.  Great news that the appraisal is good and that you're closing tomorrow!  Congratulations!  

@Sherri Somers

If you can sacrifice space and comfort for the year in the duplex, then I would move out of your current home and rent for 12 months but tell the tenants you'll be moving back in at the end of their lease.  No renewals possible. You're only obligated to live in the house hack property for a year but you can keep the good financing in place forever.  

Its a great way to acquire your first properties with low down payments and great mortgage terms.  Almost everyone who is successful in real estate can tell you stories about sacrifices they made to get to where they are now!  Let me know if you have any specific questions I might be able to answer.  My husband and I lived in a 4-plex we own and now live in a duplex.  We don't have any kids though, so that makes it easier!  Good luck!  

@Glenn Russo

I have a lot of mortgages myself, so understand the concern about being over-leveraged!  As long as you have a plan to pay back your 401K after a cash-out refi, you should be fine!  I think you can only get 65% on cash out refis using conventional residential mortgages (30 year)?  

My husband and I are house hacking and totally loving it.  Living for free (possible in Indianapolis) is a beautiful thing.  Let me know if you have any specific questions that I might be able to answer.  

Making big moves can be really scary, but it sounds like you're on a great path to real estate success!  

Crane Federal Credit Union.  Call Mark Dunn - tell him I sent you!  I've also worked with MainSource, but am not sure they're comfortable with un-stabilized properties.... Good luck!  

@Cp Rahaim

1. When analyzing a deal do you look at cash flow per unit after debt or cash on cash return? I ask because I've seen people saying they like $100-$200 per door but if that equates to 3% COCreturn that's no good. And if you are making a good COC return but the dollars per door are tiny that's no good. Seems like you need a combination of $X per door AND a COC return of Y%.

This is personal preference and is something you have to decide based on your own goals.  If I have no money in the property at all, but I'm still maybe making $100/month, maybe that's okay.  Or maybe I don't want to manage properties for less than $200/doors.  Completely subjective.  

2. Cash on cash returns are typically after debt. But what if there is no debt? Do you have a cap rate or a before debt cashflow that you like to see? Similar to question #1 but looking for metrics to use before debt.

The cap rate is the return on your money without debt.  If your NOI (net operating income) is $10,000 and you bought for $100,000 then you're buying on a 10 cap and your return is 10%.  That could also be a 10% cash on cash return, right?  

Again, this is personal preference.  There are people that are okay with a 5% return on their money, and I have friends who won't get out of bed for less than a 25% return.  I want to make at least 12% on my money.  

3. How do you account for turnover costs? painting, repairs, commissions, etc. I don't think I've ever seen such costs in an analysis.

Turnover costs are generally a part of repairs and maintenance.  I use a 15% repairs and maintenance number, which some might argue is high, but I like to be conservative!  

PM me if you have more questions!  

@Ryan Guittare

Are you looking for conventional mortgages and an investor friendly broker, or are you only looking to do creative deals?  I have a great lender who helped mortgage most of my investment properties.  PM me for contact info...  

@George Gonzalez

Hey!  Welcome to BP.  I don't know anything at all about NJ, but my husband and I are house hacking and love living for free.  Probably not possible in NJ, but in Indianapolis house hacking is fantastic!  Let me know if you have general questions that I can answer...  

@Paul Shannon

Hey!  Welcome!  Come to our meetings as well to connect with other great investors in town.  CIREIA, INREIA, and the Alpine meetup are all great meetings!  

@Ryan Merrell

Welcome to BP!  

If you have time, definitely try to attend our local investor meetings: CIREIA, INREIA, and the Alpine meetup.  Meeting like minded people who are where you want to be is inspiring!  I'm buying multi family properties in town.  Let me know if I can help in any way!  

@Jack Middleton

Definitely drive it!  It might clear your mind quickly.  Some of my colleagues are buying in Haughville at the moment.  If you're close to the river to the west of the city, its possible that downtown and IUPUI will spread that way.  Good luck.