All Forum Posts by: Samuel Carmichael

Exactly, that is what I mean by 1-5 being different. The interest is front-loaded on the amortization schedule....so the loan paydown percent annually would be different in those beginning years than they would be later when the interest is less front-loaded. 

I heard on the Andrew Hines Real Estate Podcast that it was 3%. 

I just looked at my fourplex with a loan of $325,000, started the year at $329,500 so about $500 a month. 

But does anyone know what is standard loan paydown percentage annually?  

I hear it may be different from years 1-5, then from later in the amortization schedule. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $145,000
Cash invested: $7,500
Sale price: $198,000

This was a live in flip house hack me and my son did form 2017-2019. It was a foreclosure that was leaking through the Dining Room Ceiling. I purchased for no money down with RI First Time Home Buyers project and a 20,000 forgivable second mortgage that was forgivable after 5 years. It went down by $4,000 a year.

When we sold I made $35,452 after tax.

What made you interested in investing in this type of deal?

I didn't have much cash at the time - and I needed something I could FHA into with low money down. It was hard to find a forclosure that fit the bill, but it was purchased with the intent to sell.

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

Vacant for over 1 Year. Bought of MLS with a very very old listing.

How did you finance this deal?

Traditional FHA

How did you add value to the deal?

Paint, Floors, Plumbing, Garage Roof.

What was the outcome?

I made $35,452 dollars after tax.

Lessons learned? Challenges?

Definitely check all windows, ceiling, roof for water damage. Also find problems, fix them so you can make money.

Hi BP.

Does anyone have a lender in RI that will do an 80% LTV on an investment property?

I need to refinance in the next 3 months and at 80% I Pull of a successful BRRRR. Also there is a possibility I will be living in the property at time of refinance.

Thanks!

Sam

@Dassi Lazar if you like them why not. Shows you care, are responsive, thinking of them - and it feels good for you too.

Hi Guys, I recently met someone who has 25 properties and I was telling him about my strategy to house back into a few multis. He basically told me once my 1 year FHA is up, as long as I bought the property right and had a little bit of wiggle room - I could refinance for 5% down. This getting out of my FHA loan and into another FHA loan rather cheaply. Is that feasible the 5% down, even if you don’t have a 20% LTV position built yet?

Update on this post, I am going to list the house I house hacked on 10/9. 

I will clear $30,000 to $36,000 USD in profit. 

I did about a 8K rehab. 

Thanks everyone - 

For debt coverage ratio I just read that lenders like to see 1.25-1.35%. 

But what do investors like to see? 

I am analyzing a few fourplexes in Rhode Island. When running the 50% Rule, after you subtract your debt service how much CASHFLOW would you shoot for per door? $50 $100 $125+ $200? Thanks! Sam

@Christopher Freeman 30% increase BAM!! Way to capture some additional value, I think it’s smart to consider If long term tenant - that was a good idea. But with your rent increase coming; and it being a college rental - seems like you have done all you should. Everyone complains.