All Forum Posts by: Steve K.

@Steven Botts , ....are you sure the tenant doesn't have a valid lease? In voluntary sales of investment property, the landlord can sell the deed to a new Buyer, but that transaction doesn't invalidate the lease. The Buyer purchases the deed, subject to the existing lease, and inherits the tenant until the lease expires.

I don't know PA law. I don't know if your foreclosure auction nullifies an otherwise legitimate lease (if it exists). I would guess that state laws don't allow a delinquent owner to tag the property with a sweet-heart deal of a lease to a friend, days before foreclosure.....so, you'd have that going for you. But wouldn't you need to consider that a pre-existing lease might still be valid?
Good luck

The signs say $150k/yr in Denver! (cost of living adjustment)

@Lee Fahy ,

Lee and Kim, improving the neighborhood, one property at a time. The neighbors ought to hug you and buy you fruit baskets and such!

Does Minnesota have a stigmatized property law? (Do you have to disclose homicide or brothel to future Buyers (or renters?)

Good luck. Twelve coats of Kilz primer ought to cover that art.

@Barry Rupisan , if the numbers work, HML could launch your first BRRRR with low % down from you.

Denver is a tough market for finding a BRRRR.....hard to find a property at the ideal 70% of ARV.

@Karim Ley , welcome to BP.

You'll read here that many fix/flip or fix/hold investors strive to acquire a property such that the acquire + rehab costs are about 70% of ARV. (doesn't work in all markets).

Thus, I'd want to buy your house as is for $21,500. It seems a little "expensive" that this requires $45k in rehab at this level.

Then, the investor has ~30% of your $95k ARV ($28,500 in gross profit), less all of the closings costs, financing costs, holding costs while rehabbing....to leave an attractive "net profit".

Search here on BP for forum threads that folks (similar to you) are asking about partnering with the Contractor. You'll see both sides of the debate. 

Experts here will likely tell you "don't assign a 50% (?) interest in your property to the Contractor, before he begins. He should buy half interest in it for $10,000 or so. Then, if he finances the remodel, you have a partnership deal wherein you share the net profits after each has contributed.

Good luck

@Ron B. ,

The typical "amortization schedule" for a 30 yr, 7% per year loan will have you paying $23,285.59 per month for 360 months. Each month the payment is partly interest and partly "principal"....and it lowers your remaining balance owed. The payment is calculated such that after 30 yrs your balance is zero.

In your first payment, you owe 7% x $3.5M, but you only borrowed that amount for one month, so it's 1/12th of a year....so $20,417 becomes your interest payment.....that leaves $2,869 to pay down the principal.

I use "=PMT()" function in Excel spreadsheets....you don't need an accountant to replicate a mortgage calculation. 

Good luck

@Barry Rupisan ,

You can keep reading on BP and find people who invest with 5% down (95% loan), if they are willing to move into the home as their primary residence. Here's a thread I stumbled upon....where you see this. Also, the "house-hacking" a duplex, with only 3.5% down on an FHA loan....but you have to move and live in it.

If your next investment is to be non-owner-occupied, it's likely 20% down at a minimum. The exception would be to begin with the hard money loan, improve/remodel the property, then refinance to get pay off the HML and get your permanent financing in place (i.e. 20% down). If you can find a deal, wherein your increased equity via the improvements is that 20% or 25% down,

I believe the guys at Pine Financial offer low down payment HML on flips ....it could be a BRRRR strategy for you. Try contacting @Travis Sperr

@Garlin Smith ,

I like the BRRRR strategy.

Get inspired by recent successes.....here are 3 examples:

Read some real life case histories of @Joshua D. , @William Collins and @Austin Fruechting did in 5, 2.5 years and 7 years, respectively, buy using https://www.biggerpockets.com/forums/223/topics/459415-500k-net-worth-in-5-years-im-30-today?page=1

https://www.biggerpockets.com/forums/48/topics/429980-officially-financially-free-at-32----exciting-day

https://www.biggerpockets.com/forums/223/topics/445367-full-time-employee-multiple-brrrr-side-hustle-2875-to-goal

@Travis Kurtz , as @Paul G. points out, the mortgage companies like each mortgage to be secured by the collateral of that property (only).  So, they won't be linked.

Later, there are more sophisticated multi-property "blanket" loans you can look into, when you're a commercial borrower with more than 10 properties, for example.

@Mike Re , ...there are mixed opinions on short-term rentals (i.e. airBNB), but some folks were advocating the ADU could make 2x or 3x the monthly rent if you tried short term rentals, as opposed to a 12-month lease. Search on those threads here at BP