All Forum Posts by: Justin C.

$95k invested with approx. NOI at $21,300 = approx. 22% CAP. Very cool!

Originally posted by @Brandon Turner:

Hey @Justin C. -  "re-indexed" so most searches are not working today and yesterday. It should be up by next week. 

 

Ah ha!  Thanks Brandon

Originally posted by @Lucas Hall:

Hi @Justin C.

Posts that recommend Cozy are commonly removed by BP moderators if folks from Cozy chime in. I suppose it's just part of their policies not to support competing tools. I understand that to a degree.  Gotta do what you gotta do. 

But there are a few remaining threads that I see (although they aren't appearing in search anymore):

https://www.biggerpockets.com/forums/92/topics/198...

https://www.biggerpockets.com/forums/52/topics/240...

https://www.biggerpockets.com/forums/52/topics/237...

 Thank you Lucas.  I read that there are "more surprises" to come within one of those posts... is one of them increasing the speed of deposits?  Payments processed on Mon were deposited today, Fri.  5 days is a bit rough.  Thoughts on improving this?

Thanks in advance

Just curious, there seems to be nothing wrong with the company and payments are being made as they always have been, but there is 0 mention of cozy or cozy.co within BiggerPockets.  Do any of you landlords use the site?  I recently converted my tenants over to it.  Is there a better alternative that I have missed?  I'm not completely thrilled with the 5 day float till deposits are made.  Thoughts?

Originally posted by @Robert R.:

Do you have w 2 income?

Yes sir.  And I'm already at a $0 tax liability because of children and other tax deductions.  I have paid $0 Federal Witholdings in over 6 years still earn money back.  My accountant says you can't get any lower than $0 so we are delaying a bit of the depreciation (or however that works) until the kids start aging out of the deductions and credits - 17.

Hi Shawn, I agree on the 30K, however they are at 0% and I leveraged them to get me to this point. I am now at the point where I can attempt to cash out refi or some other creative ways of reorganizing this debt. Both houses are in my name. Thoughts?

I own 2 rentals with the second one just coming to market.  Total investment of my own money is $25k, however I have borrowed $55k at 8.5% interest only through a private lender, and have another $30k between (2) 0% credit cards.  Now that my second rental is filled I can take the next steps of reorganizing this debt.  Any solid suggestions on what to consider?  My credit is 800 as of this post, but I have spend a TON this last month getting #2 to market.  I also have no personal debt besides my primary mortgage and car payment.

Total Cash on hand: $4k

Total Business Debt: $85k not including my $25k invested

Total Value: $135k between both house

House 1 value = $55k and rents for $675

House 2 value = $80k and rents for $900

I would prefer not to sell either of these but I will if needed.

Please let me know what you would do.  Thank you in advance!

Originally posted by @Joshua Nudell:

Hi @Justin C.,

Before you get opinions, you should let us know what your goals are. Are you looking only for the highest cash flow? Or the greatest ROI on your cash investment? Depending upon your answer, people could provide you with different advice.

The numbers you present don't sound bad. The first property sounds better than the second in terms of ROI. The interest rate seems high for the $55K loan. What kind of loan was it? Is it due to your credit rating not being as high as you would like?

Two houses with $600 month cashflow sounds pretty darn good.  But we don't know if you're counting ALL the usual suspects with regards to expenses (taxes, insurance, property management, maintenance, vacancy and capital expenditures).  According to analysis by Ben Leybovich you should calculate about $150 - $170 per unit per month for capital expenditures over time (boilers, water heaters, flooring, roofing, siding, etc, etc) for buy & hold properties.

If your $600 is missing some of those items you might be in trouble.

Hopefully, you've used the BP analysis tools (free!) to get a better idea of the numbers as well.

Let us know more information, and people will provide more detailed feedback.

Good luck and thanks for sharing!

Thank you very much Joshua!

The goal is cashflow but I believe ROI plays into that, correct? Regardless, the 55k loan is at 8.5% interest only until its occupied which should be August 1st which at that time, I will refinance into a conventional 20-30 year loan. The cashflow is around $550 or so and takes into consideration; taxes, insurance; vacancy, and maintenance. All utilities are paid by the tenants. Both houses have brand new hot water heaters.

Thanks again for the reply!

Hi BP,

Just looking for some encouragement or guidance with my investing situation.  I'm def over budget on my 2nd property.  Here is where my business currently stands:

Property #1 (ARV $55k): Owned outright at $32k invested currently renting at $675p/m with an NOI of $330p/m which is also my cashflow. COC 12%

Property #2 (ARV $80k+): Took a $55k loan in exchange for a lien on both properties at 8.5% interest. Bought Property #2 for $36k and currently have $5k worth of renovations on a 0% credit card till October 1st. I will most likely have $35k worth of renovations invested in this property by Aug 1st which is my market availability goal. This will rent for $900p/m with an NOI of $545. This should cashflow between $200-250 after the refi. $36k purchase + $35k renovations = $71k total invested

So simply 2 houses creating roughly $600p/m cashflow

$35k in business debt

$6k in cash but will be at $5k by August 1st due to holding costs on Property #2

I'm kinda sweatin it to be honest.  How am I doing?  Any suggestions on what I should be considering?

Thanks in advance

Well... riddle me this... Before I cut the floors out I put a level in the bottom of the tub and its exactly where I need it to be.  The bubble just showing over the left line.  Perfect.  Before I checked level against the 3 shelf ridges.  It never occurred to me to check the tub floor.  Now I think its too simple to be true.  Agh, shoot me.   This is the obviously the first time I've ever done this.