All Forum Posts by: Michael B.
Michael B. has started 7 posts and replied 43 times.
Post: A Call for Inspiration: Share Your Overall Success
- Huntsville, AL
- Posts 44
- Votes 31
@Mike H. Fantastic story. That's the kind of thing I want to see. Thanks for sharing.
Could you expand on the principal pay down and how that relates to your monthly income? You mentioned netting about 11k per month in rentals. If I understand correctly you're stating if you took away that 11k a month in rentals, you'restill making just under 170k a year. How does that work?
Also, do you use property management.
Again, thanks for the story. I hope people realize that it's about bragging, so don't feel hesitant about posting. For me at least, it's about showing us what is possible.
Post: Huntsville, Alabama investors?
- Huntsville, AL
- Posts 44
- Votes 31
Welcome to the area @James Phillips. There are some of us Huntsville area folks on BP as @Zachary C. mentioned.
Post: Hello from the Huntsville, AL Area
- Huntsville, AL
- Posts 44
- Votes 31
Originally posted by @Brian Reynolds:
Welcome @Michael B. I'm looking at the Huntsville area also, Multifamily like @Tobias Falzone . I am not actively searching atm, but hope to make first purchase in 2018. I am also a business owner and am being consumed by that at the moment.
I just created a community editable map for Huntsville area, so experts can share their knowledge about certain areas to avoid (say, like Oakwood) and where the path of progress is heading. It's brand new and needs your input!
Google Maps: Huntsville Area REI
Anyone know exactly where the Toyota-Mazda plant is going?
Brian, thanks for the welcome. I grew up very, very close to Oakwood. I wouldn't put a blanket "don't invest here" on areas on like that. Although I get it.
The Toyota-Mazda plant will be out in the Greenbrier area. It's a good ways from Huntsville proper if you will. Try this: https://www.google.com/maps/place/34%C2%B042'01.2%... and this http://huntsvillemegasite.com/
Post: BRRRR single family with before and after pics! Metro Detroit
- Huntsville, AL
- Posts 44
- Votes 31
Originally posted by @Egan Lohman:
@Keith Jourdan - Nicely done!
@Michael B. - Just wanted to chime in on your question:
"So you purchased for 58K and put 21K into rehab so your cost is at 79K. You'll refi at, let's call it 110K, 70% LTV. 70% of 110,000 is 77,000. So how do you get cash out when that's less than 79K? Or is it because the 21K is separate?"
Your numbers are all correct. He put 79k CASH into the project (plus closing/holding costs). He will refi at 70% LTV on the appraised value of 110k. That means the bank will cut him a check for 77k. Remember, he doesn't have an existing mortgage. He owns the house outright. He paid 79k for it :).
Once he re-finances, he will have a mortgage, but he will essentially only have the remaining 2k (79-77) of his own money in the house. That's the beauty of BRRRR.
He will own a property worth 110k, he will have 30% equity because he only owes 77k, and he put 2k as down payment! Oh, and he now has significant residual cash flow from the rent!
Time for the last "R" which really should be two "R"s - Rinse and Repeat!
Much thanks Egan! I appreciate you taking the time to break that down for me.
Originally posted by @Greg H.:
Here is a thread that myself and others have posted some good info about the HUD process
https://www.biggerpockets.com/forums/20/topics/286...
One thing I cannot stress enough is using an agent, title company/attorney and loan officer that is familiar with the HUD process and this is a big reason many HUD deals fail to close
Thanks Greg!
Post: Lead Generation Websites
- Huntsville, AL
- Posts 44
- Votes 31
Thanks @Antoine Martel and @Omar Khan.
I'm referring to "We buy houses" websites to get leads for investors.
Thanks for the response @Brian Pulaski. There are some decent looking deals in my area from HUD. I guess I'm kind of wondering what's the catch?
Post: Lead Generation Websites
- Huntsville, AL
- Posts 44
- Votes 31
Lead Gen Websites: Do they work?
If anyone is willing to provide some numbers such as, website traffic, leads generated, and leads closed that would be great.
Ok, next installment of help me understand: HUD, particularly www.hudhomestore.com.
First, is it a good place to get good deals? It seems safer than a foreclosure. Is it?
Second, why are the eligible bidders sometimes limited to owner occupants, nonprofits, and government agencies? Once its listed that way, does it every change?
Any experience and guidance on HUD purchases is appreciated.
Post: First deal done! First rent check in the bank!
- Huntsville, AL
- Posts 44
- Votes 31