All Forum Posts by: Robert Howard

Because of bigger pockets, I completed my 1st deal I brought a home from a non-profit that gives small business loans. I paid less then $5k and put in about $6K. I have linked the report to this post. I wipe out my savings for this property, but I'm happy with it. I brought it last year in September and finally finish everything. I got a tenant on January 13, 2017. I have a goal to buy one property a year until I get to five and then maybe two to three until I replace my active income with passive income. So today I went to the bank to attempt to get the equity out and I was advised that I can't refi because it has to be at least $50k. I can't obtain a equity line of credit because its not my primary residence. I have replace I can't with How can I, but it's not working. I went to 4 different banks and obtain the same answer. Please help me understand what I'm doing wrong. I want to draw out $25k for my next deal. I thought it would be like a piece a cake, but it a wall that I can't seem to scale. Any suggestions on how to get my equity out would be greatly appreciated. 

house

Because of bigger pockets, I completed my 1st deal I brought a home from a non-profit that gives small business loans.  I paid less then $5k and put in about $6K.  I have linked the report to this post.  I wipe out my savings for this property, but I'm happy with it.  I brought it last year in September and finally finish everything.  I got a tenant on January 13, 2017.  I have a goal to buy one property a year until I get to five and then maybe two to three until I replace my active income with passive income.  So today I went to the bank to attempt to get the equity out and I was advised that I can't refi because it has to be at least $50k.  I can't obtain a equity line of credit because its not my primary residence.  I have replace I can't with How can I, but it's not working.  I went to 4 different banks and obtain the same answer.  Please help me understand what I'm doing wrong.  I want to draw out $25k for my next deal.  I thought it would be like a piece a cake, but it a wall that I can't seem to scale.  Any suggestions on how to get my equity out would be greatly appreciated. 

house

I'm not in tourist type town. So airbnb wouldn't be good in my area, but it is a college town. Another problem I have is that there isn't any comps to compare the property to, so I don't know how to find out the ARV. Any suggestions? Also thanks for the replies.

I just wanted to get the consensus on what the community thought about one bedroom rentals? Please share!  I'm thinking about purchasing a duplex side by side 1 and 1 both sides, but the owner is house-hacking.  He advised that his last tenant just up and left.  He also advised that even when he sells, he wants to stay.  Something doesn't really set well with me with that statement. So any advice would be appreciated.  Also what are some of the questions I need to ask the owner to make sure he isn't hiding anything.  I guess this is a two part question.

@John Leavelle the 6% PM, I found him through an associate of mine that rents his house with PM.  I talk with PM and he advised that he ranges from 6% to 10% depends on the area.  So those two property are in "GREAT" areas and would be in the 6% category.  I will say the other two PM(s) I talked to were 10%.

@John Leavelle thank you so much. So, I have an better understanding. Only if its distress does the 70% "All-in cost" apply. But if I can find a rent ready property with just some cosmetic issues I need to be concern with Cash flow and COC ROI. That helps a lot. The area I'm in doesn't appreciate much if at all, so I'm cautious to purchase a fixer-up in a C or D neighborhoods Some of the ones that may have value are in flood planes and that kills the deal most of the time, because flood insurance is high and the rent in those areas range from $500-$625 We have been hit by two tornados One yesterday and the other about 2 weeks ago. A lot of people are displaced and looking for places to stay. It is a tragedy, but I see lots of opportunity, with people looking for places to stay and property that people may take the insurance money and leave. I want to jump on a property now and hope to parlay it to another property, so that is the reason I was looking at the 70% ARV. So I would be able to get money out and strike while the market is in disarray.

@Brent Coombs Ok. So I have gone back to the tax assessor site and there is a button that says recent sales in area. I see what you are saying know. Here are the comps 09/28/2016: $120k; 08/31/2016: $140K; 7/7/2016: $135K; 03/18/20016: $219K. So should I take the middle number of the first three prices since the $219K seems to be an outlier or take the average to come up with a more realistic ARV? I also look for properties in the area that are actually on the market with a for sale since and called and they start at $155k asking. I really thank you have your help. I'm learning a lot. Could you send me a copy of one of evaluated properties?

@John Leavelle I will change the numbers in my estimate. I have a question . I obtain ARV from the tax assess value. My agent seems to think the owner will sale for $110k. John what are your parameters for a purchase ? I thought I need to buy all my deals with all-in-cost at 70% ARV, but when I look at it who would sale their property this cheap unless there are issues , but I don't want to think negative .

@Brent coombs I think I have confused you and myself. The $72k is the short sale property and the $110k is the duplex being sold by an investor. I have not made any offers on anything. I have just been playing with the numbers to see what works when I'm ready. But, I very interested in your parameters when you analyze a deal.

@brent coombs it is true. The story is told from where I want to buy at. I talked to a contractor who told me it takes around $2500 to turn a unit out. I have looked in the short sale and nothing much other than paint and carpet clean. The privacy fence needs mending but I thought about tearing it down. I haven't seen the duplex but it's in a great area. I have a friend who lives in the neighborhood and I have seen the layout. The realtor seems to think the buyer will take $110k. Now I'm a beginner and all the information I have been taking in says don't buy more than 70% of ARV. So if it doesn't fit my parameters, it's not a deal. Right? The short sale is currently listed at $72k. So tell me what are your buying parameters?