All Forum Posts by: Mack Lengel

I've been going hard at real estate and am looking to do a flip soon. Does anyone know of any attorneys, CPAs, and contractors that are good to work with in the Greenville, SC area? Any feedback is helpful, thanks!

My go-to RE CPA is not taking on any more clients at the moment, unfortunately.

My father is a licensed GC, I do not know if he is able to take on any more projects at the moment but shoot me a message about it and I'll see what he can do.

2 Votes

Greenville, South Carolina

Quote from @Zach Fulton:

This property is well below market price because I am buying from a wholesaler. It is right in Greenville, 5 minutes from downtown. The property has new construction homes all around it and is in a very desirable area. They are offering seller finance.

Purchase Price: 155,000

Downpayment: 30,000

Interest rate: 7%

Length of Balloon: 10 years

Length of Amoritized: 25 years.

Below are my calculations.

"Monthly Payment $883.48
Balloon Payment Amount $99,174.21
Loan Amount $125,000.00
Total Interest $79,308.33
Total Paid $204,308.33
Payoff Time 10 Yrs"

2/1(Under 900 sqft)

Repairs(If I decide its worth it, its not needed): 30,000

ARV: It could easily go for 250,000 after a general rehab, probably more. I think it could sell as is for around 200,000.

Market rent: As is I think it would rent out quickly for 1300(Currently 1100). After Rehab I would estimate 1500-1800(Again, it depends on the repairs)

Taxes should be under 1,000

I estimated insurance around 1,000

What am I missing? This could be a good opportunity to get my foot in the door with sellers finance. I see the real opportunity as the chance to hold this property and cash flow a little bit along the way, or rehab, refinance(If I can find a better interest rate), then rent it out for an even better cash flow. Either way I see holding as the best move.

I always encourage people to hold whenever possible because that's where the wealth comes from as opposed to just the riches

To me, this seems like you'd be better off flipping it than holding with the current numbers given. It would be a great learning experience and will hopefully help you snowball into the next deal that might be more lucrative.

Just my 2 pennies

2 Votes

Greenville, South Carolina

I have not personally invested there but my cousin just got her cabin up and running: https://cherokeerosehomes.gues...

0 Votes

Quote from @Saranya Sundararajan:

$750k property 1112 sq ft with view in the smokies 1 bedroom + loft with a killer view.The property grosses 85-95K a year. Have asked for 2019 numbers

my gut tells me nahhhhhhh. It’s wayyyyyy overpriced

Yeah, I just put a 2-2 modern A-frame under contract for 590k that should do around 75-85k a year so I would say you could do better than that!

0 Votes

Quote from @Brittany Stradling:

Quote from @Mack Lengel:

Congrats on getting into the STR game in the Smokies!

Would love to learn more about your deal. Does your cash invested include your downpayment?

Thanks! I am excited! I am a veteran, so I have access to a lot of favorable loan products. I used a 5% down, no PMI vacation home loan from Navy federal. I also asked the seller to cover most of the closing costs. I end up having less cash flow since its only 5% down, but I just wanted to get started and have some skin in the game

That is great! Thank you for your service.

I bank with NF and did not even know they have a 5% no PMI vacation loan, very cool!

2 Votes

@Oliver Dow I hate to say this but it depends

Are you looking to sell these? If so, do what will get you the highest sales price, likely the 4/3.

Are these going to be rentals? If so, who is your target renter, and what size is most in demand or underserved in your area?

Those would be the biggest things to consider in my eye. A more spacious feeling is nice but only goes so far.

Hope this helps,

Mack

1 Vote

I believe both FHA and USDA have construction loans but they aren't always easy to, lots of hoops, and most lenders won't do them even if they can.

10% down construction loans shouldn't be a problem for you to find. You could always refi after construction if needed (maybe interest rates will be lower at that point).

1 Vote

Congrats on getting into the game! I would love to hear more about this deal. Where is it and has it doing for you?

4 Votes

Congrats on getting into the STR game in the Smokies!

Would love to learn more about your deal. Does your cash invested include your downpayment?

1 Vote

All Forum Posts by: Mack Lengel

Mack Lengel has started 3 posts and replied 126 times.

Post: Looking for investor friendly Attorneys, CPAs, and Contractors

Post: Looking for investor friendly Attorneys, CPAs, and Contractors

Post: What do you think about this deal?

Post: Blue Ridge Ga

Post: What do you think of this deal?

Post: STR Smoky Mountains

Post: Should i build a 3/2.5 shf or 4/3?

Post: FHA new construction owner occupied one time close loan

Post: smoky mountains cabin

Post: STR Smoky Mountains