All Forum Posts by: Sean Johnson

@Alexander Felice, I had not checked on the PWC sewer assessment before, but just did, and we are all good.  Thank you for bringing that up.

I'm tracking what you are saying, numbers wise, I won't be cash tight. In terms of equity, in this case I would be buying more equity than creating which obviously isn't ideal but everything still checks out.

@Alexander Felice, sort of. There are tenants in place in all three properties and very minimal work needs to be done in the near future. The amount I will be able to get the houses for is not 75% LTV, hence money left in the deal.

The main reason this deal is looking good is because I am taking three properties off this guy's hands (don't worry, its because he is starting to sell of parts of his portfolio, not because these are terrible properties) so I can get them at a discount, just not a 25% discount.

I really appreciate everyone's inputs, I have a clear way forward with this deal thanks to you guys

@Carli Cummins, thanks for the termite info.  It looks like your first post got removed, did that have a home inspector reference?

@Ned Carey, thanks for the reality check, I'm sure I will need plenty more as I get my feet wet.  

Its great seeing the crab, I grew up outside of Annapolis

About to submit an offer for an investment property in Fayetteville, NC and would love any recommendations for a quality home inspector.

Thanks in advance for the help!

@David Acosta, great point.  I re-looked at the cash flow numbers during the 6 months I will be waiting to refinance and I will actually make up a little over 40% of the money left in the deal just in those first 6 months.  Based off the area and what I am targeting, I should have more than enough to continue (pending major issues I somehow missed of course).

I'll shoot Alex a message, thanks for the advice

@Scott Rubzin The properties are in Fayetteville and gross $700-750.  I agree with you about the cash on cash return being a big part of the decision here.  At this point I am leaning towards going for it because I do feel comfortable with the cash flow.

Do you BRRR in the area? Thanks, I appreciate the input

Rijm, I am by no means an expert but I have been finding a bit of both. Some PMs charge a percentage of 1st month's rent for placing the tenant (normally I have seen 50%) and some just stick with ~10% per month with no extra tenant placement fee.  I have also seen a "listing fee" which is a flat rate for advertising your place on the market, so you will just need to ask what their policy is.

In terms of accounting for it, if you mean when you are running the numbers in a BP calculator, you could always just add into the closing costs or other expenses categories, I know it wouldn't be perfect but at least it would remind you it exists.

And I agree, the extra fee for placing a tenant could incentivize the PM to create a higher turnover rate but not always, you will just have to feel that one out

Hope this helped 

@Account Closed, you have to sell the property in order to qualify for a 1031 exchange.  If you are just looking to use the equity in your house, a HELCO sounds like what you are looking for based on the info you provided