All Forum Posts by: John Truong

What numbers do you use in your cash on cash return?

@Mehran K.  $150/unit/month => $1800/year. At 20% CoCr your out-of-pocket is $9000. Is your loan down payment very low and minimum repair?

@Aaron Montague  $100/door/month => $1200/year. At 15% CoCr your out-of-pocket is $8000. Again, is your loan down payment very low and minimum?

@Elizabeth Colegrove  $200/month => 2400/year. 15% cocr => 16,000 out-of-pocket. This is more understandable for me.

@Scott Wessels  Thank you for your post. I also need to know but never think of asking.

@John Chapman I really like your 5 criteria. Do you also use a rent-ARV ratio (I assume more than 1%) and/or a minimum cashflow per SFR? Thank you.

Hi @Huy N. ,

Thank you for posting. Looking forward to see the finish product.

How did you find this property (mls, wholesale,...)? And which part of Houston is it located? Thanks.

@Aaron N.I don't know if this answers your question. I've seen this definition on an auction.com page:

What is your purchase price?

@Kyle Kelley What  are those guidelines that prevented you from using delayed financing? Thank you.

@Doug McLeod Thank you for sharing this experience. I wished I had learned about the delayed financing last year. I probably could have gotten better deals paying with cash then do the delay financing.

Did you do some work yourself or were they all done by contractors? I put $10k and $15k on two houses for similar repairs, but did some work myself (+ friends and family) and hiring some cheap handymen.

Hi @Sonny Ngo ,

Can you please give examples of class A, B, C... neighborhoods in (southeast) Houston? I still have difficulties figuring it out. What class is Sagemont area? Thank you.

-John

@Katharine Chartrand

If I understand this right (sorry I am slow), the contract stated that buyer would pay for all delinquent utility bills, and more... But no where in the contract it showed how much. Wow that's bad. Buyer would have to do due diligence before bidding/signing.

So to do it the right way, I need to have a signed addendum that seller will pay for the utilities, buyer will not. Am I correct? Or I don't need that addendum in the first place, because the owner/bank is required to pay for it in the first place?

I bought a Homepath property 7 months ago. After seeing the appraisal report, the bank demanded for some repairs ($3000 worth) or they will not finance. Fannie Mae refused but extended my contract so I could find a different lender that offered Homepath loan. A week later, F.M. decided they would do the repair so I could close with the initial lender.

This was in December, maybe they needed to close quickly.