Need $ For Deals?
Get Unlimited Funding
Click Here Now!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
July 19, 2018, 03:02:37 AM
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Need $ For Deals?
Get Unlimited Funding
Click Here Now!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
July 19, 2018, 03:02:37 AM
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Click Here to Register for the Discussion Forums

Author Topic: ???  (Read 944 times)

Offline him6616

  • Member
  • *
  • Posts: 3
???
« on: August 14, 2005, 10:21:31 PM »
i am currently working on my 1st rehab/flip and i have an idea but i need to work out the bugs in it.in my area i can buy houses all day for 20,000 and rehab them with a few thousand and get the arv at about 65000 to 75000.now if i buy the house cash for 20000 and i repair it and rent it out can i  want to take out a 70% mortgage or line of credit on the property.now the ? is i know that i can do that but i want to continue to buy property and continue to do this with every house i buy so that i can get a lump sum of cash after the rehab and i will be making a positive cash flow of several hundred dollars a month but the only problem i see with that is the debt to income ratio.i know i could do this several times but i would like to know how i can do this about 12 times a year and i am just curious if this is doable or could there be a problem.

Offline kdhastedt

  • Global Moderator
  • Member
  • *****
  • Posts: 5807
Re:???
« Reply #1 on: August 15, 2005, 07:49:00 AM »

Hi him...

My wife and I are teamed up and here's what we do:

Find a house that meets our specific requirements (size, condition, school district, price, neighborhood, etc.) and make an all-cash, close in a week low offer.  We buy the property as we have said -- all-cash, close in a week.  We do whatever refurb is necessary, usually a lot of cosmetic stuff (paint, flooring, blinds, yard work, some landscaping, etc.)...then we rent it out for full-market rental rate.  Once we have finished and have a renter in-place, we do a cash-out refi for 80% of the FMV.  You will have a new, higher appraisal AND a rental contract showing an income stream.

I think that this "cookie cutter" will work in your situation, too provided that you have the capital to get started.  We do this as a part-time thing and we are doing well...all of our properties have at least $200 positive cashflow after ALL bills are paid (including PITI, maintenance, management, vacancies, and a small reserve).  We usually wind up breaking even on the up-front costs after we refi, so we get all of our capital back and start over.  In a slow real estate market, you will be very surprised with what power an "all-cash, close-in-a-week offer can have!  It works for us!!!

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

 




SMF 2.0.15 | SMF © 2017, Simple Machines