All Forum Posts by: Jesus Sosa

BP Community, as a newbie investor in Rental Single Family properties what is something I should be starting as a foundation to my future rentals. I hear that if you wait until after a few rentals to contact a CPA and start a system, it becomes much difficult and could even cost you money (not saving money!) When it comes to tax season.

Once I started to begin my RE journey. I began tracking all my mileage and expenses via Excel Spreadsheet. Currently closing on my first rental planning to BRRRR after seasoning period.

Thank you all.

@Brent Coombs Yeah that makes total since. I wouldn't want an 8% interest for 30 years at all. I took the 70% of the ARV and subtracted the rehab costs and it got me 75k which is the PP, but could negotiate it down even more since there is no HVAC unit (it got stolen).

Thank you very much for your assistance. Cheers

@Robert Verdi Yeah I do have an attorney I have worked with previously. I will get her to take a closer look into the amortization and prepayment penalty’s (if any).

Property needs maximum of 10k of rehab. ARV based on comps are at $95-100/sq ft or 115k/120k.

Comp rents are 950-1100.

Cash flow should be well over 300$ accounting for vacancy, capex, maintenance, etc.

Currently have an opportunity to obtain a property via owner financed. Debating on how the terms being structured will effect my BRRRR exit strategy.

PP: 76k

Down Payment: 6K

Interest: 8%

Term: 20 years

Monthly payments: ~550$

Now, my concern is with a little bit of cosmetic work and seasoning period. Could I later cash out refinance this property with a greater value without it affecting the terms of 20years at 8%?

Let’s say I want to wait a year or 2 to refinance, I would have already paid 13,032$ (2yrs). 3,451 on principal and 10,008 on interest. The remaining of the balance is $66,549 (principal). With my refinance would I have to pay those remaining 18 years of interest on it? Or just pay the full remaining balance?

Sorry for making this confusing. Thanks you all on advance.

That is incredible and inspirational. You stepped forward to something new - syndication. Educating and putting your full attention and compassion into one goal will eventually pay off. You weren't stuck in analysis paralysis, instead, you believed in yourself and fulfilled your core value of matching your words with your actions. Outstanding. Congrats on your transition and I am sure you've got plenty more deals to do! I may be new to the game, but I've got the fire and gut to reach my RE empire.

Blessings,

Sosa

@John Underwood When you purchase via tax sales. Do you run title search? How quick do you get that and close on a deal?

Would love to connect if you can! Thank you!

@Michael Breisch I'm currently looking for SFH due to capital. In the near future will turn to multifamily.

I remember hearing delayed financing on a podcast a while back. Has anyone successfully completed a BRRRR with delayed financing instead of waiting for the seasoning period of 6 months (for most banks). I remember hearing something along the lines of including both the Purchase price and Rehab Cost in closing to complete the delayed financing.

My silly question is: Is this possible with a fully paid off (cash) property?

I am seeking capital for an investment property. Due to my 1099 employment, the only opportunities I see for myself is a HELOC or Refinancing (cash-out) of my personal property. Afterward, I'll do a BRRRR, and instead of waiting for seasoning, I can possibly do delayed financing.

Any suggestions would be greatly appreciated. 

@Russell Payne

Short term rentals are definitely easier to handle in my opinion. You won’t have to keep getting calls after calls at 2AM about a complaint. Short term rentals simply go in, and go out. Unlike LTR they’ll constantly be asking to get something repaired/replaced/added/etc.

Then again it all depends if you have the right systems in place. Otherwise you’ll be looking at a complete headache.

I believe STR is great, only for vocational homes at least, unless you're planning to househack. The reason is because you:

1) Have your own get-away house

2) Can write off your expenses

3) Make extra Income

Yes, it comes with more managing, but if you simply advertise for a cleaning crew (or person), on craigslist, Fb, etc. You can very well avoid the pain and headache when it comes to maintaining it. Of course, you've got to do a great job screening and hiring the right candidate for your maintenance work. PM could do the same, but they can eat up your cash flow. Just run your numbers in all scenarios. After completing that, all you have to worry about is advertising it on STR platforms (VRBO, Airbnb, Booking.com, etc).

References: https://evolvevacationrental.c...