All Forum Posts by: Robert Leonard

@Jeff M. welcome to BP! I'm and SFR investor from Lafayette and I purchased my first multi-family property in Alexandria last year. I'm always looking to get to know other investors around Louisiana. I'll see you around the site - it's a great place to learn!

@Account Closed I think a great way to network and learn would be to offer those services to other investors you meet at REIA meetings. You can learn from them and provide that service for them and get to know people in the trades to really set yourself up for when you are ready to pull the trigger and do your own investments.

That's where I think you should start and it will give you a bit of an advantage in networking. When you help add value to other's businesses, they will be happy to have you around and learning from them as you help them promote their businesses! Sounds like a win-win to me.

@Brett Jackson my first question is what kind of insurance did the guy driving the truck have? If it's a good reputable insurer (and he had enough coverage to cover the damages), you should be "made whole" by the insurer. If it's a cheapo obscure named insurance company, they are known to be good at taking premiums but a nightmare to try to collect a claim from.

It might be hard to get estimates and quotes to choose from on one business day? That seems a little unreasonable of a timeframe from HUD for you to determine whether or not you can still make this work. Even with an adequate credit from HUD, if there isn't an insurer to cover the drive through repairs, your whole rehab just dramatically changed!

If you had a paint and carpet rehab, can your contractor do this partial rebuild? Can you fund that? Lots of questions that make this very complicated if you have to take on the new project you have on your hands.

@Joshua Feit I'll buy that one, if you'll manage it!

@Jay M. I think your best option is to seek a line of credit on the property as a second after you cash out at the amount that will allow you to cash flow 200+/mo. You can then use the line of credit (LOC) to make additional purchases or rehabs. That way you avoid saddling your property with long term negative cash flow. You pay back the LOCs when you get your long term financing on the following properties you acquire. Just another option to consider.

@Michael Longobardi 80k for a totally rehabbed property that will generate 1400/mo rental income is a pretty good buy IMO. I know it's not ideal to put that much down up front, but the positive side is increased positive cash flow and a nice boost to your personal net worth!

I see this as the kind of opportunity that you take advantage of, accepting the drawbacks with the nice equity position you appear to be capturing in this purchase.

Congratulations @Pat Burch

@Pat Burch

@Pat Burch

@Pat Burch

@Pat Burch

@Pat Burch

@Pat Burch

@Ace A. there's one good reason that comes to mind - the cash buying advantage. You almost always get a better deal on your purchase with cash.

The rest of my answer is, then you cash out refinance for as much as you can for the full 30 years and you'll probably make out like a bandit! And then put that cash to work on building your portfolio!

Note: Paying $4 to get back or save $1 (25% tax bracket) is not the best strategy for building wealth. Getting something back in the form of the interest deduction is a good thing, but it shouldn't be the reason why you make the investment.

@Account Closed here are my 3 quick tips for you to take action in 2014:

1. Pick up your weekly real estate guide that usually comes out once a week in your local paper and start learning about the retail side of your local market. Go to a few open houses to see what a person can get for $xxxx. Before long you will start to recognize what a house should sell for in certain areas. Get to know what a person can expect to get for $50-100k, $100-200k, $300k+ etc... It's happening all around you every day, you just have to take a little time to pay attention to it (the market).

2. Join a REIA or two and start networking with active investors. Be genuine and make some friends. "Remember, God gave you two ears and one mouth, you should use them proportionally!" (Source, my Mom)

3. Be the sponge. Listen to every podcast. Take notes and every time you find or hear something new, look it up and get a clear understanding of it. After a year of soaking it all in, you will no doubt find a strategy more appealing than others and choose what will be your niche for when you are ready to pull the trigger and get started. The friends you make from networking and being involved here on BP will be there along the way as you learn and grow.

I guess those weren't as quick as I originally thought they would be, but I think they're quick enough for your time line! Best of luck to you.

@David O. a couple key components missing in your equation: what is the ARV of the property? With SFR, that's determined by sold comps with cashflow valuation only used as an alternative when no good comps exist.

How are you financing this deal? Whether you are using all cash or leverage will determine your cash on cash return. Cash on cash return is always higher when you use leverage.