All Forum Posts by: Rivy S.

@Account Closed as someone who has been burned by that market, I highly recommend staying away unless you are very sure you have a good team on the ground who you can absolutely trust.  If you do have that, let me know, maybe you want one of my properties there :)

I'd love to hear all the details @Dejahn Renrick.  Can you tag me also? That's a crazy return. 

@Ori Skloot @David Faulkner Oh I agree with you 100%, this is a home run of a deal.  I was just wondering about the $800/month cashflow statement.  Also, what I meant by regular investors is people who need to treat real estate as an investment rather than a business, due to capacity/time constraints. 

@Ori Skloot well then that kind of reinforces the opposite point... for "regular" investors -- who aren't GCs, agents, and managers, deals in your area, even ones that are as fantastic as this, won't cashflow ;)

I'm curious about the statement that this is cashflowing at $800/month. That's the total amount left over after PITI payments. If you take out 10% cap ex, 5% maintenance, 5% vacancy and 10% property management, you're left with negative cashflow... Even if those allocations are not exactly accurate for the property, you're still looking at very minimal cashflow. What am I missing here?

Thank you for the responses @David Dachtera @Roy N.

I know that in the end of the day, I am the one who needs to make sure it gets paid. Just trying to figure out if I have a legitimate case to make the property manager pay.  I am not local, so I'm not sure exactly what happened with the dumpster, and how long stuff was left around for.  

I just received a $500 ticket in the mail for one of my properties in Detroit.  It was for "vacant property blight", and referenced furniture and other things in the yard.  This property is vacant, and was undergoing renovations at the time.  One of the things I paid for was $750 to remove all the debris from the house, which would require a dumpster. So my question is, who is responsible for this ticket? Me? The property manager? The contractor who was emptying the house?

I'm going to use this thread to chronicle my first BRRRR. All advice and suggestions are welcome!

The property is a 4/1.5/1 located in SE Dallas. It is currently tenanted on a month to month lease for $825.  My offer of 69K was accepted on Monday 1/23, and we will be closing on Feb 1st.

Until that time, I am trying to figure out insurance, what my property management options are, and to begin researching cash out refis.  

I'm considering doing a wraparound note on this.  If I decide to go that route, I will probably not rehab, keep the tenant in place until the 6 month seasoning has passed, do the refi (the question is how much it will appraise for without any work), and then sell with owner financing.  I know that is slightly risky as the bank can invoke the "due on sale" clause, but I will be able to get a hold of the money if I need to, so I'm comfortable taking that risk. 

@Shane Baganz I'm with ya on wanting the money out. I need it out even sooner, that's why I'd want to do it with the cash out refi first. 

Are your loans amortized for 30 years, with a 5 year balloon? Or just a straight five year loan?

@Rick Pozos You're absolutely right, if you can scale it it can work really nicely.  I don't have a ready network of private lenders, and I also am looking to be able to leave my corporate job within the next 3 to 5 years.  But I do like that model, I'm going to try to see if I can work something out along those lines.