All Forum Posts by: Rivy S.

@Shane Baganz oh, ok.  That makes more sense.  Thanks!

So if you start with a 1000/month payment,  the 25th years payments would be 2032/month.  The buyers are ok with that?

@Rick Pozos oh I guess at higher price points the numbers work better. 

@Rick Pozos I'm having a hard time seeing how you cashflow with your scenario.  I did an example with a property that you acquired for 70K, and seller financed for 100K.  Your monthly payments on a 10 yr, 8% 70k loan would be 849, right? and the payments from the end buyer (10%, 100k, 25 yr) would be 909. That's only $60 per month.... is that the kind of cashflow you're talking about? (I know it's an infinite return because you've got nothing in it, but still)

@Andy Webb yes, I'm looking to

@Andrew Farmer Why is it a problem for my name and credit to be attached to the 1st lien? Because of DTI?

Also the reason I said rehab was because most banks only loan up to 70% LTV, so if you want to pull all your capital back out, it has to appraise for significantly higher than you bought. (Also the house has to be insurable, so no roof or foundation issues. ) I guess with private lenders things can be more flexible? In which case the rehab isn't necessary.

@Shane Baganz so you charge a set amount, that includes property tax and insurance? But don't those change from year to year? The difference comes out of your pocket?

I've been attempting to find a property to implement BRRRR on here in the DFW area. Since I don't want to get involved with hard money, I need my all in price to be about 100K. From speaking to various people here in the industry, it sounds like that price point is more ideal for owner finance deals than rentals. Tenants on 100K properties are more difficult to manage, and turnover costs have a real impact. However, the main advantage of BRRRR is that you don't leave capital in any one property, because you pull it all (or nearly all) out when you refinance, thus allowing the Repeat step.

So what I'm wondering is: Is it possible/advisable to combine these two strategies? Buy a property, fix it up, refinance it to pull capital back out, and then turn around and sell it via owner financing? Will the bank who I refinanced through allow that? Will they know? Who pays property taxes and home owners insurance during during the period that the owner finance is being paid down? Will people be hesitant to purchase a property from me if I've got a secured loan tied to the property? And lastly, has anyone done this here in the DFW area that would be willing to sit down and chat with me about it?

Thanks in advance!

@Jay Hinrichs This is super incredible of you.  Can I request that you have the "team" you select start a "deal diary" and link to it at the end of this thread so we can follow along?

And request number two-- can you do this in DFW next year??

@Mark Allen I'd love to see more details on that.  Can you PM me, or send to my email?

Wow, where can you get a 10 unit for 130k? What kind of work is needed on it? What is the rent/door?