All Forum Posts by: THU NGUYEN

Thanks for sharing, very inspiring and congrats on your success.

You are so wrong, it's not a few thousands more to buy retail, it's $20k to $40k equity on each house you rehab... you end up with only $3k, 4K down payment and still cf $400 a month... what kind of investment that you put $3k down and receive $400 a month cf? Only RE.

I get away with this rule by creating a private loan (my cash to someone else, who then loan me back), I apply for refi after a week I close on the purchase and got my cash out 45 days after the first close at new appraised value. Maybe try it for the next one.

Sugarland is a great place to live, really good school, some older neighborhood has low tax rate, nothing as low as california though. Rental is not that great since most of the time you will not get the 1% rule for it based in today market. Houses have appreciated in the last 4-5 years but rent has not kept up with the appreciation. For an example, I have a house that is appraised at $230K, but rent is only $1800. Another one appraised at $172K, rent is $1450 so in term of CF and COC return, it's not that great. But it might appreciate more than other places...who knows...wish I have a crystal ball..:)

@ Kevin Nguyen

Total cash out of my pocket including refinance closing cost for my first deal is about $28K.  My cash on cash return is expected to be at 19% (CF first year less commission of 5213/27695).

You will find that it's VERY HARD to purchase at 75%.  I will buy at 80 or 85% but these deals are just not out there.  It's very competitive and buyers will buy fast with not much equity.

My second deal, the total cash out is $10K with coc return of 59%; third deal total cash out is $2.6K, coc return is 113%; and for my fourth deal I expect total cash out of $8.5K, coc return at 41%. 

I would LOVE to learn how seasoned investors buy with no money.  I guess it's possible if you find a really good deal.  As you can see I am new, so I am ok and happy with my results.  Goodluck!

Thank you so much guys.  I'm going to see if I can get a realtor to approach the bank to do a short sale.  

Dear BP community,

I need help to see if there is any way I can turn this into a deal?

I came across this deal. owner owes $130K on mortgage. ARV $180k. The house needs $15K external update (replace sidings, patio covers etc) and $20K inside update. HOA sends letter to request for external repair but he has no money to fix it up.

Livable now condition. Owner wants to lease it back at $1500/month. No inside update needed while renting to him.

The GC that I talk to is this seller next door neighbor. He wants $5K assignment fee.

I would not buy this house at $`137 (130 current mortgage balance +5 assignment fee +2 closing cost) but I am thinking about Subject to...what if I put $15K down to fix the outside, I will pay the mortgage for him (1300 per the GC -escrow included) and collect the $200 difference in rent. Owner will rent it at $1500.

Another way would be trying to buy the house short sale? It's FHA loan...I need to find a realtor that knows how to work FHA loan?

The house is worth $180K - $185K once updated and need $35K work, mortage is $130K now.

Is there any way to make this a deal?

Thank you for your input.

Thu

I came across something similar last night from a list I downloaded realist. Check the owner name, it's probably an LLC that buys many houses from the builder.

Don't pay off your mortgage, get that cash to buy some distressed properties, fix them up, refinance to get your cash out, put a tenant in the house to pay your mortgage and repeat..BRRR!!!!

For me, it takes 30 days to wait for first inspection, then second inspection.  My house was sitting empty for a month waiting for them to inspect.  I let tenant moved in as soon as it passed second inspection but I told tenant to give me full rent (her portion plus the section 8 portion) while waiting for Section 8 to finalize the contract.  I will refund her the money whenever Section 8 pays me.  Almost a month after tenant moves in for Section 8 to finalize the contract.  I might not get pay until another week or two.....It's a SLOW process and there is nothing you can do.  Wait for them to call is all you can do if you want to rent to Section 8.   I hope it's worthy in the long run.