re: Information for my fellow Real Estate Investors

Not necessarily asking or responding to you StevenTiger, but to anyone.

I don't have very many vacancies, but I had a tenant move to california recently. Anyway, it's been a while, and I don't recall the general rule for gross/net income and percentage as it relates to whether someone can afford my property.

I've been using 3X net as a starting point, but am thinking 4X net and better is what I really need to look for. Am I way off on this?

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starting another flip project this week.

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ya'll are going to "flip out" soon with all these flips. Excellent working capital. wash, rinse, repeat.

So im already in about six units for rentals. one duplex, one fourplex, just recently closed. I am more so interested in flipping, though. However, contractors honestly scare me away. I have no relationship with any (move a decent bit for work), and I know flippers usually get a better "deal" than someone just coming up for the first time.

So my question to the OP (and others) is: When you were beginning, how did you navigate contractors and get good estimates on pricing for what you wanted done? Do you do some of the work yourself? How did you go about deciding what to fix and what to leave?

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However, contractors honestly scare me away

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This is where developing your "team" comes into play. Find a realtor, banker, insurance guy and contractor. Once you have your team together, it really can help remove you from putting too much time in the process. Contractors can be tricky but once you have a good one, they can be very valuable.

Try finding a local REI group. Good way to network and possibly meet or hear about a good one. Just an idea.

Thanks.

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Frankly, the flips have been so easy and good to us, that it just makes sense to keep going with them.

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remember what I told you. Stick with what works best for you right now! You are doing that. I am too busy for flips now but maybe down the line. I am just funding my buy and holds now. Eventually it SHOULD give me more time for other endeavors.

both units leased already!

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2 days worth of small work and should be on the market by Friday and will be starting on the next flip on Monday.

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you need to slow down. At this rate you will be retired in no time.

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100 unit apartment complex about to be built and was asked if we wanted 25% of the deal. LOTS of diligence to do but could be a VERY good prospect. Partner going to look at 2 others ones that have been done by the same guy.

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like that email i sent you. I may be looking at those soon also but I am not risking everything else for it as I laid out to you. Find out all the info and if any other partners are needed present me with the info.

ETA: i just sent you another opportunity if interested.

Steve, sent you an email to yahoo this morning.

So I'm looking at a potential first deal on a SFR buy and hold and these are the numbers:

It's a 3/2 in a well-rented area listed for $109,900, which is about $67.40/sqft. I ran some comps this morning and the most favorable comps around run at about $61/sqft, which would put me at $99,430. I'd probably offer like $97,000 and hope for $100k.

With $5000 down (including like 2% for closing costs), I'd be sitting at $94,430 loan balance at hypothetically 4.75% in a residential loan. So:

Monthly payments (P $ I): $492.59

Insurance: ~$180.00
PMI: ~$56
Monthly maintenance + Vacancy fund: $100.00
Taxes: $115
Property Manager: $120.00 (10%)

Total Expenses: $1080.59

It rented last in 2015 for $1350.00, and the lease comps support this. So assuming I could rent for $1350, it would cash flow at about $270/mo, giving me a 65% ROI.

What do you guys think? It seems like it would be a good deal if I could get it. Two things, though. It needs a fridge, and updated stainless appliances would help. I could do that for less than $2000, and may could use that for leverage for a lower selling price.

Secondly, I'm green on financing. Could someone explain to me whether/why I'd be better off doing a conventional mortgage like above, or a line of credit? I'd like to avoid PMI if at all possible. I'm just ignorant on the various ways to finance.

Thanks.