All Forum Posts by: Rivy S.

@Jay Hinrichs The property taxes (at least in the DFW area) are out of control, especially for non-homesteads.  And they increase so unpredictably, that I'm wary of holding rental even if they pencil out now. 

@Robert Tinker I've been happy with FS Houses in Indy. I can't tag Ryan Mullin (the owner I think), but I believe he's on BP

I think it depends on what your goals are for investing... If you are trying to generate as much cashflow as possible to leave your job, for example, I'd say skip.  If you're trying to put your extra money to good use so it's not just losing money in the bank, and can afford to hold onto this for an undetermined amount of time until the time is right to sell, you can make a lot of money in the long run.  I would just caution you to make sure you are accounting for the other costs that come with landlording (vacancy, increased taxes, maintenance, capex, PM, etc) and make sure you wont have a problem covering those. 

@Louis Porter Jr.  In general your two options are going to be 1. Delayed financing or 2. Cash out refi.   Delayed financing can be done immediately, for 70-80% of appraisal, but is capped at purchase price. So you maximum loan would be 70k.  Cash out refi's usually have to season for 6 months (some lenders require 12 months), and then will be based entirely on appraisal. 

@Andrew Postell has an excellent post on a 3rd way, which I've never tried myself:  https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property

You can also try to find a bank who will do a cashout immediately, but I'm not sure how common that is. 

@William Thomas I would recommend getting a 30 year loan, and paying the 15 year payment if you want to.  The difference in the interest rate is usually minimal, so you can capture the advantages of the 15 year loan, without losing the flexibility if times get rough. Run the numbers on how long it will take you pay down the 30 year loan if you pay an extra 300/month. I'd expect it's very close to 15 years.  And in my opinion that small amount of extra time is definitely worth the flexibility of being able to put that 300 to a different use in the future, should the need arise

I agree with those that said that property taxes are making it really difficult in this market.  I've begun to try to do wraps instead of rentals for that reason.  I recently completed my first, and it's bringing in 435/month.  I'm in middle of another that I will either flip or wrap. 

Well it all depends on how you're defining cashflow. If you mean rent - PITI, then 200 is nowhere near enough. My calculation is rent - 10%(management) - 10%(maintenance) -8%(vacancy) -10% (capex)-PITI. With those calculations, I'm lucky to get 200/door/month. However, I don't have to worry about expenses eating up years of cashflow, because those expenses are accounted for. Yes, my reserves are conservative, but I need each rental to be able to fully support itself and pay for its own expenses.

Wow sounds like a winner! Did you buy this mobile home with the land it was on? If not, where did put it? In a park?

I've got two duplexes in Indy, and the are performing very well.  These are completely passive investments, I spend about an hour or two a month looking over bills and statements. 

Doesn't work as a brrr but seems like perfect numbers for a flip

@Nicholas Aiola  Can you explain to me the tax ramifications of a wraparound around mortgage? For example: I bought a house for 110k, spent 30k to renovate it, and got a loan for 110.  My monthly payments to the bank are 615.

Then I sold the house with owner finance for 159, with a 143k loan.  The monthly payments to me are 1045.  What is considered my taxable income? For my loan to the bank, the fact that I'm paying down the loan doesn't help me, because I'm not gaining equity in the property since I've sold it. So can I deduct the entirety of my payment from the 1045 that the buyer is paying me?