All Forum Posts by: Marvin Z.

@Dan Rowley I just came across FIG today and am trying to get more information on them. Do you mind if I message you directly just to get a bit more insight?

Thanks, let me retry with the brrrr calc. 

I believe youre referring to the 2% “rule”?

The deal appears to cash flow well which is what made it attractive to me. I’m not nearly as bullish on the appreciation side of deal, as I factored into assumptions. 

You’re right that the neighborhood seems like a solid C area. This prop specifically is in Tulsa OK. I’m still learning more about the area to find out if this is a location I’d like to invest in. 

Thanks for the insight! 

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*This link comes directly from our calculators, based on information input by the member who posted.

Hi all, just interested in getting feedback on a deal I'm looking at. I used what I believe are conservative assumptions for the area:

0.5% rent growth

0.5% prop appreciation

Vacancy/R&M/Capex each at 8%

Mgmt at 10%

I confirmed property taxes online and insurance quote is a high estimate.

I also added in some immediate repair costs for items like replacing AC condenser and possibly some roof work.

The deal will be all cash upfront, but I would expect to do an immediate cash out refi to get 75% of my purchase price back, leaving 25% down in the deal.

Thoughts and insight are appreciated!

@Eric Johnson Thanks for the insight! Single Family Rental deals (I think that's what you were asking). I have solid conventional W-2 income and I do have a prequal letter in hand with a lender who already qualified me for a purchase price that's much higher than most of the cash deals I'm seeing as well so I think I'm covered there.

@Annchen Knodt Thank you for the article. If I'm reading that correctly, the takeaway is that a delayed financing will top out at 75% LTV, but if I can nail my purchase price and any rehab costs inside of that number, it would be possible to take out the full amount via the delayed financing loan (by including the rehab costs as a Settlement Charge on my Closing Loan Docs)? Implied in that statement is that the appraisal comes in at a high enough market value as well?

@Mack Benson Thank you Mack. I had not heard of Delayed Financing in my research so thank you for putting me on the right track!@Annchen Knodt

Some lead sources I'm working with throw out deals that require all cash. I like some of these deals and want to participate. I have the cash to purchase but ultimately I would rather use leverage so I keep as much of my capital freed up for more investments.

Is it possible for me to purchase the property outright in cash, then once the deal is over and I own the property, take out a loan or refinance into a conventional loan with a more typical 20% down and get the rest of my cash out?

Thank you in advance for any insights you can provide here!

@Jc M.

Also a Bay Area resident here, in a similar situation, looking to make my first investment in RE. For my first property, I'm considering purchasing through an OOS turnkey provider in a midwest market.

I think most people scoff at the idea of turnkey because you're buying a house at market value, which may be right. But I do like the idea of just getting into the game, learning the hard first-timer lessons, and being able to lean on the team of people that a turnkey offers while still earning some modest cash flow.

I don't have any delusions of knocking it out of the park with such a strategy to start with, but I'm optimizing for getting that 'base hit' that Brandon Turner always talks about, then building from there.

Interested to hear how your story goes from here and what direction you take. Good luck!

@Jc M.

Also a Bay Area resident here, in a similar situation, looking to make my first investment in RE. For my first property, I'm considering purchasing through an OOS turnkey provider in a midwest market.

I think most people scoff at the idea of turnkey because you're buying a house at market value, which may be right. But I do like the idea of just getting into the game, learning the hard first-timer lessons, and being able to lean on the team of people that a turnkey offers while still earning some modest cash flow.

I don't have any delusions of knocking it out of the park with such a strategy to start with, but I'm optimizing for getting that 'base hit' that Brandon Turner always talks about, then building from there.

Interested to hear how your story goes from here and what direction you take. Good luck!