All Forum Posts by: Philip Joseph

 Message me, I'm still buying

 I'm not from Macon and my subs are not either.  After my last rehab, two of my subs said they will not be able to help me on future remodels.  One of them got robbed by high school kids with guns, my trash can and a few other items were stolen from the property, and someone through a brick through the front window.  Nothing like that has ever happened at my properties in Houston and Peach county.  Because of that, I made the decision not to buy there. Cajun 

 I buy in Houston and Peach county...I do not buy in Macon/Bibb county any more.  

Cajun

 The link Andrew provided works.  I just put a section 8 tenant into one of my property for $1,200/month, but her voucher was good for up to $1,400. 

 Well you must have gotten a 2% interest rate.  Congrats on the outstanding numbers for your first rental.  I have 18 properties in the area (manage about half myself) and only the ones I purchased in 2016 before prices shot up that cash flow in the $600s.  If you truly get $700+/month, you need to come to a local meet up and tell us what you are doing.  Congrats again!

So how are you calculating cash flow? Based on your numbers, I believe your cash flow should be closer to $300/ month. What is your mortgage (Principle & interest), plus your taxes and insurance? Then add your management and CAP. A $712 cash flow on a $118k purchase and only $1,300 rent seems high, like you might be missing something.

Cajun

You are running into a common issue with these low value properties in Macon and other areas. Many brokers/banks and hard money lenders will not finance under $100k. The best bet is to get funding from a private investor who trust you. Option 2 is to partner with someone who has the money. Figure out terms that work for both of you. Option 3, keep trying local banks. You might find a local bank willing to finance the deal. I find local banks to be more flexible when it comes to terms. Option 4, pull equity out of your primary home to open a HELOC. Use the HELOC to complete the rehab, but make sure you have a bank that will do a cash out refi based on the $125k ARV before starting the rehab.

Long term, you may need to bundle multiple properties. What I do now is buy, fix and hold a few properties. Once I get 3 or 4 properties completed, I cash out refi them as a package deal. since the value is usually over $300k, I've never had an issue finding a local bank to finance the deal. They will usually only do 75% of the appraised ARV. Good luck!

Matthew, who did you use for the refi and what rate did you get? I'm currently in the process of refinancing 5 properties I purchased back in February. Closing is set for 15 July, but rates are over 6% for 30 fixed. I'm going to need to refinance the duplex BRRR that i have under contract once i complete the rehab...I want to shop around before my next refi to see if i can get a better rate.

Cajun   

 There's GCs that can handle all those things for you by managing the individual contractors, but you will pay a premium.  On a mobile home rehab, the margins may be tight.  

Good contractors are hard to find and many of the long term investors will not share them with just anyone.  Come to a meet up and meet some of the other investors.  Join the Middle GA FB group and get to know the members or just search the comments.  There's also a FB group for locals with many contractors actively looking for work.  Find me on FB and I will invite you. 

Cajun (Warner Robins investor)

@Richard Huizar

Please follow up after this is done and tell us truthfully how it ended up...I am very curious, as I would love to try something like this. But, Having invested in Macon, I see so much risk with this deal. Unless this property is in one of the rare higher value areas of Macon, it will not refinance well. It should cash flow just fine, but the owner will need to leave a significant amount of capital in the deal.