All Forum Posts by: Michael Johnson

Hi @Sean Richway. Went to ur site but didnt see any additional info. Where can I find additional info? You can Send me a private message 

@William Laurent you can add me to your list. Message me. 

It is, but be sure to factor the additional costs for a double closing and transactional funding fees into your end buyer purchase price. 

@Patrick Zanders which HML are you using for a 90% purchase and 100% rehab loan? Can you private message me the info?

Hi Richard, can you send me some info regarding your loan programs for FL properties and any additional details on the referral program. [email protected] 

@Richard Burke It depends on the areas you are looking at. There are some fairly good deals out there. I just got a 2/2 condo in Ft. Lauderdale, tenant occupied @ below market rents and returning 14% on the purchase price after HOA,Taxes, Repairs & Cap-x. I manage my own properties so that is the only expense I don't factor.

If your looking for some properties to invest in, send me a message. The return off purchase price is usually 10-14%

Hi @Eric Benzenhoefer any plans to extend into Florida? 

Well... To start...if there are separate water and electric meters, you would want to have your tenants pay that on their own.

I like to calculate both the Purchase Price ROI and Cash On Cash ROI.

Gross Rents: $2650 monthly. $31,800 Annually

Guestimating:

-17% of gross rents towards Vacancy, CapX, repairs/maintenance would total $450 per month. - Annual Expenses $5,400

-Debt Service $1146 monthly- Annually $13,752

*Total Monthly Costs: $1597. - Annual Costs: $19,164

*Net Profit: $31,800 - $19,164 = $12,636

1) Your simple Cash on Cash ROI calculation would be: Net Cash/ Expenses.

-$12,636 / ($19,164 )= 28.61% cash on cash.

2) To get your ROI on the Total Purchase Price which is (Purchase price + closing costs + renovation costs).

The formula is (Net Annual Income/ Acquisition Cost)

To get your Annual Income: Take your Total Annual Expenses of $5400 and add your annual Property Tax & Property Insurance, lets estimate that as $4800= $10,200. And Subtract that from your Gross annual Rents of $31,800- $10,200= $21,600

Purchase Price ROI is $21,600/ $227,800 = 9.48%

Seems like a good deal no matter how you slice it. 

If you need help on the repair costs, depending on how sever the repairs are, you may be able to get a Title1 loan which is part of the FHA program. Its a one time loan that you can get to finance repairs on a primary residence for $25k with a 20 year repayment... Equity is not factored.

Admirals Bank offers this loan in addition to a PLUS 1 loan for another $25k. Check their requirements on how long you have to own the home before applying. I think they require 3 months. But if you were to get a private loan or use CC's for repairs, you can use this to repay it. 

I used this loan for my home renovations at decent interest rates.

Hey! @Eric Griemsmann

A full update of the kitchen/appliances, 2.5 baths and misc touch ups would be $20k-25k paying retail costs for materias and labor. An investor with some experience can get it done for $12-15k, if purchasing all materials and hiring installers, or less if DIY'ing some of the work.  

I would be more than willing to help a buyer coordinate the completion of the upgrades. There are many suppliers here in south fla with quality materials at a fraction of 'big box store' costs, as well as some investor friendly contractors that do good work. 

***GREAT Investor Flip Opportunity***

Pembroke Pines Single Family home:

2050 NW 188th Ave Pembroke Pines, FL 33029
3 Beds/ 2.5 Baths 1668 sq feet
-Could use minor updating in kitchen and baths for max value- Currently tennant occupied and will be vacant prior to closing!

Asking: **$275k cash or hard money.** (Wholesalers- Please add your Commission)
*All reasonable offers will be considered*

Located in the highly desired West Pines area:

Excellent Flip opportunity:
Recent comps from $335k- $350k:
*18481 NW 19th St. 33029 3br/2.5ba -- Sold: $330,000.00 on 9/25/2015
*1040 NW 190 Ave. 33029 3br/2ba -- Sold: $324,000.00 on 10/17/2015
*19230 NW 12 Mnr. 33029 3br/2ba -- Sold: $335,000.00 on 2/5/2016
*18731 NW 1 St. 33029 - 3br/2ba -- Sold: $345,000.00 on 2/8/2016
*1252 NW 192nd Ave. 33029 - 3br/2ba -- Sold: $347,500.00 on 3/30/2016

A Great Buy and Hold:
Active rents ranging from $2,000-$2,400 per month.

*Property is occupied, Drive by and make an offer contingent on inside viewing- Tennants are moving.

For more info contact:
Mike @ 954-559-6117
[email protected] or [email protected]