All Forum Posts by: Ryan Rogers

I have done some research into look at multiple different insurance companies. I am now getting blown up from every insurance company out there. Any recommendations that has good policies but on the cheaper side so it won't eat into any of the projected  cash flow?

Thanks,

Ryan

@Sherief Elbassuoni I was pretty conservative and only did 5% for each expense. Property management later down the road will be about 10% but so will rents!

@Marlen Weber thank you!!!

Hello BP,

I am excited to announce I have my 1st duplex under contract. In the last 3-4 years I have invested my money in two house hack single famiy homes. I just sold my 1st house that became a rental and got a decent size profit through appreciation over time. I am going to rent out my current primary in Tacoma, WA once I move into my owner occupancy duplex. Here are the #'s.

Duplex PP: 399,000 2 bed 1 bath 844 sq ft. .43 of acre and zoned multi family. HUGE backyards.

Money down: 59k= 15% down owner occupancy.

Closing costs: May be negotiated but we will go with 10k.

All in 69k. Fair market rents are currently 1,495 a unit. 2 bed 1bath. 2990 total income. I will live in one side. and rent out the other room. House hack my side. Renting room for $500 a month. Making $250 a month living in my own dupex!?

Locked in at a 2.625% interest rate. Also bought out the mortgage insurance W/points. Giving me a 1,753 PITI.

5% cap ex 5% vacancy 5% repairs 5% Property management. Which I will do myself. 

1 year later potential: 2990 income-600 expenses-1753piti = $637 cash flow. $318.5 each door. 637x12= 7644 annually/69000= 11% return 

What do you guys think? Nervous about this one. Looking to park my cash somewhere from my 1st home rather than it sitting in the bank. Please, any advice helps! Inspection Tuesday!!!

Ryan

Hello BP Family,

I have stumbled on a property just 30 minutes south of Seattle, WA and I would love to hear your opinions on this.

I know someone who owns this property outright and the home is completely vacant. The home seems to have good bones. However, will need some cosmetic remodel around the whole house and the house will not go through financing in its current state. Toilets are off, plumbing is out, dry all is open in some areas, mostly cosmetic. Siding is toast. Needs new windows. Electrical and plumbing are all attached and doesn't need to be gutted.

The owner of the home lives in Oregon and does not live in WA. She has told me that she would like 300k to pay off her house free and clear in Oregon. 

I had 2 real estate agents come with me to the home and comp the home on the conservative side ARV @ 600k.

Seller Financing is the way I see I can move into this property. Pay monthly payment to the owner and live in the home non Interest flat monthly fee for whatever we negotiate. (She is willing to do no interest payments) for 18-24 month term to fix the house. ( I would actually house hack the home and have my tenants pay the monthly payment) and fix the home over the 18-24 month term. These payments do not go towards any type of principal towards the loan. Just showing to her that I am dedicated to fix this and make this happen.

After completing a full renovation. I refi the home. Pay her what she wants out of the deal 300k and I take on the loan of the home and live in it, potentially rent and or house hack. My question would be how would this refi transaction work? 

Purchase price 300k

ARV=600k

Is it 80% LTV? So 480,000.

Rehab 50,000 (Rough Estimate)

480,000-300,000-50,000 = 130,000? Is this left over cash or equity in the home? What would the loan terms be after a Refi like this? I guess I am just confused on the #'s or deal. I go to the bank and I want a 30 year fixed after I pay the owner off. What does my loan look like? This may be a lender type question. 

Anyways, let me know what your thoughts are on this. This deal is off market and I don't want this one to slip away if I can think of some creative financing options. Especially since the home owner owns the home outright.

Really appreciate your input,

Ryan

Hello BP,

Looking for some advice. I currently have a Manufactured Double Wide on its own land that I bought for 230k 3 years ago to date. Currently the PITI on that home is 1587. Currently renting for 1,825. $238 extra monthly is very slim margins! I may be able to get it up 1,925 max. Which still doesn't cover cap ex, vacancy, property management - I do myself. I basically save the $238 for repairs each month.

I have GREAT tenants in there currently. This has been the only reason that has lead me not to sell the property. They pay well ahead of the time. They fix minor issues. Take great care of the property. 

My interest rate on the home is 4.625 and I can really get that any lower (Refi) due to it being a manufactured home. I have had 3 real estate agents comp me at a selling point at 320k for the home. I currently owe 214. Netting around 80k. 

This loan is a FHA loan. I lived in this home for 2 years and currently house hack another SFH home. My goal is to scale higher and get into a multi families. I am only into year 3 of the home and a considerable amount is still going to interest rather than principal. Heloc's are tough to get right now on rentals and I would have to look at the 1031 exchange. My goal is to buy a duplex, triplex, 4 plex or higher. I do live in the Tacoma/Seattle area and it is expensive here. However, with my savings and potential sell of the home I would have over 100k to get into my next property. Since this isn't necessarily cash flowing and I have a decent amount of equity. Should I sell and move onto bigger and better things? I plan to rent my current home I live in as well which will cash flow a lot better than this current one. Any advice helps. I appreciate it

Ryan

@Corby Goade

Will there be an issue as far as an investment property or primary residence? Single family residences or multi family?

Ryan

@Corby Goade,

If I were to get the Heloc. I know it is used as a credit card. However, since I am tapping into my equity. Will my mortgage change? Or is this only when I refi?

Ryan

@Aaron Nelson

Thank you for your response. How is your duplex producing? 

My current home is a long term buy and hold property. 

The 1st home was before I got into investing. Now, I am just curious on how I approach the equity in the 1st home and what makes the most sense moving forward. 75K, and additional savings can get me a decent down payment on a multi family. 

Ryan

@Corby Goade

I have about 70k equity in the 1st home. If I use that as leverage, my mortgage will start over and go up correct? The interest rate wont affect much of the total mortgage even if it was a half a point lower. 

The fair market rent for my current home will allow me to cash flow 150-200 with a property manager and all expenses after running the #'s multiple times. I like the idea of house hacking with low money down 5% until the bank stops me from financing and ill have to look into other financing options.

Ryan