All Forum Posts by: Shayne Whittington

@Jessica Zolotorofe

Ok that makes me feel better about everything. Thank you!

Hello BP

I'm a relatively new investor with 4 units under my belt and 1 under contract right now. I've only financed one deal and will be financing this property under contract. I wanted to ask what the typical lending rates were for a non homestead investment property? I feel like my interest rates are kind of high for my credit scores. (6.125% for my triplex and 5.875% for this SFH) So I wanted to ask what other people are typically getting and if I should be looking at a different lender or I should just calm down and factor in higher rates in my next property?

@Philip Abbey

I’ve read a few of the responses and all make valid points. But it’s ultimately up to you to do what you’re comfortable with. I suggest reading/listening to Scott Trenchs book Set For Life. It may prove useful in your situation.

But to throw my two cents on this conversation, I would pay the debt off first. In my opinion, if you’re not weighed down by debt payments every money, it gives you a sense of freedom. You can build your capital much faster and in the time that you are paying the debt off, you could be researching your chosen market. This way, once you’re up and running, your cashflow goes into your pocket. Not into the debt collectors.

Good luck in whatever path you choose!

Shayne

Originally posted by @Jason D.:

@Shayne Whittington is the property value you are using "market value" or "assessed value"? They can be wildly different numbers.

Go on the cou ty website and you should be able to see what the taxes actually were 8n previous years

 Its assessed, Bought it for 47K and rehab is 40k. haven't had it appraised yet but my realtor said it'll appraise from 115k-120k so I just used 115k because thats what it'll likely be appraised at when I finance it to get the cash out. 

Hello everyone, 

I seem to have a problem that I didn't take into account when running my numbers on a rental property I just bought. I ran the numbers with the Trulia estimated property taxes for my area. It cash flowed will with those numbers but now after looking up the Millage for the area my property is in and I almost had a heart attack.. 

So, my first reaction was to figure out exactly what "total Millage" was. Millage Rate is amount per 1000$ of property value used to calculate local property taxes. Now knowing what a millage rate is I looked up what my properties millage rate was. It turns out its rate is 65.2! Dividing 65.2 by 1000 gives you 0.0652. Now you have to multiply that number by your property value, 115000, which gives you your annual property taxes for that area. That brings it to 7498 in property taxes per year or 625 per month. 

Now the rents in this area on average are at 1100-1200 per month. So now knowing this, it pretty much kills the property and now negatively cashflows. My question to everyone here is, should I sell this property off and focus on a different area? This was going to be a BRRRR but I have yet to finance it so I have 100% equity in the property as of now.

Let me hear what everyone thinks! 

Thank you, Shayne

Hey guys and gals, I wanted to get the opinion of the masses on a deal that I’m in the middle of. It’s a distressed 4 bedroom, 2 bathroom 1650 sqft single family home in Kalamazoo MI. Cash deal at 47k and 35k into the repairs and renovation. The ARV is around 120k. I have good tenants lined up for when the work is completed, who’ve agreed to 1100 a month. My question for this one is, should I BRRRR it or leave it as is? I’m caught in between doing either. I understand the value of refinancing and doing another deal but that takes away cash flow from this property. Is it ok to sacrifice cash flow for more properties? Let me know what you all think??

@Jeff Schechter hello Jeff, I’m looking for both buy and flips and buy and holds that I can get at a discount, put a little forced equity into it and either rent or flip. It really just depends on the numbers. If they work for a rental then I’ll hold and if the ARV is high enough then I’d flip. Found a great realtor there that’s been very helpful with finding deals so far.

@Jeb Brilliant hey Jeb, Right now I currently live overseas. I come home for two months out of the year and spend my time between Michigan, Indiana and Illinois. While staying mostly in Indianapolis. So that’s technically local for me. I have people on the ground in Indy and feel comfortable that those people can take care of all things I can’t while overseas.

Hey guys, I’m just starting to look in Indianapolis area. Looking to find a realtor or realtors in the area to start my real estate portfolio there. Could anyone help point me in the direction of a great agent in the area? Thank you

@Caleb Jordan Hard money lenders seem to be the consensus if I can’t get approved for the conventional. Thank you!