Since my last bump, I have commented more in Fat Bastards thread but we have been fairly busy.

We bought the house from Pg 7 along with another rental house. We bought a flip project in March or so, rehabbed and closed on July. Have another flip house in title right now and trying to close in the next few weeks.

Totals/Updates:
- 4 rent houses with great tenants in each one. Last two bought with our line of credit and rolled into 5/1 15 year loans 60 days later.
- 2 completed flips with third in contract.
- Used most of the cash from the last flip to completely pay back our LOC and now at a $0 balance.
- We have turned our focus almost exclusively to foreclosures. We have found that if you can get through the BS that comes with buying/selling one, the money is a lot better on flips and is easier to roll into a more fixed product from the bank.

New flip property under contract is a mobile home in pretty good shape.
2010 model
3 bedroom/2 full baths
2,400 square feet
Needs paint, flooring, appliances and a few fixtures.
Cost $55K and estimated rehab is between $8K-9,500.
Similar properties selling for around $110,000 in the area.

We recently lost what could have been our best deal ever. Great 4 bedroom foreclosure. VA owned property asking $82K. Offer $75K cash and got turned down. 3 weeks later VA drops price to $74K and we offer full price that morning to find out someone else was in before us. The house needed about $35K for rehad but could have sold for $160K at a minimum. We were pissed because it seemed like a shady deal with the VA. Someone made some money.

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Posted by Fat Bastard

coach, investor, gambler

Member since Mar 2009

73750 posts

Posted on 8/22/16 at 12:42 pm to stevengtiger

quote:
Used most of the cash from the last flip to completely pay back our LOC and now at a $0 balance.

yeah i just got a unsecured LOC from my local bank the other day. I wasn't locking up my money in checking into CD's just to please the bank. I didn't get the full amount that i asked for but it will do for now.

I'm getting some public record crap straight with IRS now on my credit report. I'm looking at a SFH buy and hold with a COC return of right at 20%. monthly positive cashflow is unreal after a 25% down payment. traditional financing. I've got two different traditional lenders i use but may be looking at the third due to the commercial lending aspect. They do not care about my credit (even though it is excellent). they look at the deal itself. I've still got private financiers if need be but that will be for later on when needed most. those tweener properties that are a little too much for a cash buy and not worth traditional financing are good to finance privately. put your 50% down @ 8% or 10% for 10 years. may not be much cashflow but you can get those paid off fairly quickly. Or if you just run out of fannie mae backed mortages. then you have no choice but to go other routes.

This post was edited on 8/22/16 at 12:46 pm

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Posted by bluemoons