All Forum Posts by: Ryan Young

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $15,000

This was my 1st property to add to my portfolio. I have a great realtor and actually purchased it sight unseen. It already had a tenant in place and they have been amazing so far. I plan on going in and do some renovations after the lease is up to increase my monthly cash flow.

How did you find this deal and how did you negotiate it?

I was working with my realtor for a couple months and this popped up on the MLS. My realtor went and looked at it and we put an offer in the same day. It was listed at $79,900 and I submitted a low ball offer at $60,000. The seller was extremely motivated so she countered at $65,000 and I accepted.

How did you finance this deal?

Conventional loan with a 20% down payment

How did you add value to the deal?

By purchasing the house at $65,000, I initially established $20,000 in equity as it appraised at $85,000. I intend to go in and do some slight renovations (new flooring, paint, countertops, vanities in bathrooms) and the ARV will most likely be around the $115,000 mark.

What was the outcome?

I have been owning it for 6 months now and everything is going great. I was a little nervous at first when I bought it since there were already tenants in place, but they have been terrific.

Thank you everyone for the feedback.  I decided to bring on a partner to split the down payment as well as the rehab 50/50.  Since I found the deal, using my realtor, property manager, and managing the contractors, we reached an agreement to split the equity and cash flow 60%/40%.  We put the offer in this morning and was accepted a little while ago.  Very happy to get this deal done and appreciate the help.

@Alexander Felice

I really appreciate the feedback. That helped put things in perspective and using a conventional loan and a line of credit is not a good option for me right now.

The property will be approved for a conventional loan since everything in the Holme is in operable condition and the repairs are minor (new flooring, Sheetrock repairs, new paint, appliances).

Also, I do have 2 people (close family friends) that have expressed interest in me since I did my first deal about 6 months ago but I am not exactly sure how I could structure it. If I took $10,000 from a partner, how would you structure it? Pay them 10% when I refinance after the 6 month seasoning period? Or give them a certain % of the cash flow each month and maybe a certain % of equity in the house?

I just know that this deal is a great one considering the ARV is where it is and the rent would be about $1100-1200 so I would like to find the best way to get this deal done. Once again, I really appreciate the feedback.

Thanks for the feedback. The seller is extremely motivated and needs to sell soon so I am buying well below what it is worth. The ARV will be around $125,000-$135,000 judging by the other comps.

So I am a little over my head currently on the funding of my 2nd rental property.  I have the funds for the down payment (20%) on a conventional loan, but do not have enough for the rehab.  Here are the details:

Purchase Price: $70,000

Rehab: $10,000

I initially thought I should use (1) loan to fund the purchase price and the rehab, but my lender recommended me to use a conventional loan for the purchase price and take out a personal line of credit through them to cover the rehab.  I am very confused on how this would go.  I am assuming I would need to refinance after 6 months to get money back out in order to pay back the personal line of credit.  I would definitely appreciate any insight on this or advice on how to go about getting this deal wrapped up.  

I am wanting to get advice from you guys on what is my best option to get in the fix and flip game.  I currently have 2 rental properties in my portfolio and am wanting to branch out into the fix, flip, and sell sector.  My 2 partners and I have found a property where we live in Baton Rouge.  Here are the details:

Asking Price: $181,000

Our offer: $170,000

Estimated Repairs: $30,000

ARV: 275,000

We have enough cash for the down payment but not enough for the entire home or the renovations.  I suggested using a regular Conventional Loan for an Investment Property with a 20% down payment and for the renovations, using a Construction Loan.  Like I said, this is our first potential purchase on a flip property and am wanting feedback on this purchasing option.  Would this be better than hard money lenders? Any advice would be greatly appreciated.  

anything?

I have found a property that I am very interested in. I called and spoke with the listing agent and she told me a bunch of info that I probably didn’t need to know. Long story short, the seller is about to go into foreclosure because she can’t make her payments and she just wants to sell the house for her payoff amount. Is this the best time to go in and see if she is willing to offer seller financing? I have cash, but not enough for an entire purchase price. Will have to go the conventional 20% down payment route. I recently just purchased my fIrst investment property last month usIng a conventional loan (20% down) so I would like to save my cash as much as I can. Just would like to hear what you guys think about this scenario. Listing Price: 79,900 Potential Offer (her payoff) Price: 70,000 Estimated Appraisal: 80,000 Rent: 850-900 Looking forward to hearing any of your input

I recently closed on my first property and the tenants are already wanting to do a few repairs at the house. The husband is a “handy-man” and would like to do the repairs himself and for me to reimburse him for the materials. It sounds like not too bad of an idea but would I be opening up a scenario that may turn sour later? I told him to run everything by me first and he needs my verbal permission to continue. The first repair he wants to do is to fix the 3 ceiling fans throughout the house. 2 of them don’t have power going to them and 1 is broken. Should I allow him to repair/replace these fans or no? I believe this is a smart plan for things that would help improve the property. Any insight on this would be great! Thanks

Originally posted by @Ryan Bergeron:

Congratulations! Do you plan on performing the reno work yourself?

Thanks! And yes, as of right now I plan on doing the reno next year myself.