Topic: RentalStarter - A Midwest Real Estate Investment Company - page 43. (Read 120200 times)
traditional mortgage = fixed rate mortage?
Mill St looks to be 25% simple ROI and Railroad looks to be 30%. These are all pre-leverage numbers. Once we leverage the return will be infinite.
Maybe I am missing something obvious, but can you go over once again how you get to infinite ROI?
$45,000 buys property #1 (Purchase + Rehab).
We then refinance the property with a local bank using a traditional mortgage. Bank then gives us back $45,000-$70,000 on the mortgage. Property income pays for mortgage indefinitely + dividends to investors.
So within 3 months the property has returned 100%-155% of the purchase price. So then, there is no investment in the property at this point yet it still brings in several hundred dollars free and clear per month.
So, what is $300 a month in income on a investment of $0 (Since it has been paid back in full)? This is why I state it's infinite, the original investment is paid back plus extra.
Awesome!
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Mill St looks to be 25% simple ROI and Railroad looks to be 30%. These are all pre-leverage numbers. Once we leverage the return will be infinite.
Maybe I am missing something obvious, but can you go over once again how you get to infinite ROI?
HUD has FINALLY set the file to close.
We will be closing on Mill St on the 5th of next month. Rehab/demo will start within a hour of us closing.
Railroad st is still pending contract, I will update if we get an accept/reject on that one.
Mill St looks to be 25% simple ROI and Railroad looks to be 30%. These are all pre-leverage numbers. Once we leverage the return will be infinite.
We will be closing on Mill St on the 5th of next month. Rehab/demo will start within a hour of us closing.
Railroad st is still pending contract, I will update if we get an accept/reject on that one.
Mill St looks to be 25% simple ROI and Railroad looks to be 30%. These are all pre-leverage numbers. Once we leverage the return will be infinite.
Great news Branny.
HUD has FINALLY set the file to close.
We will be closing on Mill St on the 5th of next month. Rehab/demo will start within a hour of us closing.
Railroad st is still pending contract, I will update if we get an accept/reject on that one.
Mill St looks to be 25% simple ROI and Railroad looks to be 30%. These are all pre-leverage numbers. Once we leverage the return will be infinite.
We will be closing on Mill St on the 5th of next month. Rehab/demo will start within a hour of us closing.
Railroad st is still pending contract, I will update if we get an accept/reject on that one.
Mill St looks to be 25% simple ROI and Railroad looks to be 30%. These are all pre-leverage numbers. Once we leverage the return will be infinite.
How long till we start renting by your estimates?
4-5 weeks after we close, hoping to close next week.
How long till we start renting by your estimates?
I see there was a dividend, 1428 sat/share yesterday. Have we already started making income? I thought we were still working on getting the first house purchased?
He said that the IPO agreement stated that he had to pay a dividend, so he distributed 1btc out of pocket.
Yep
I see there was a dividend, 1428 sat/share yesterday. Have we already started making income? I thought we were still working on getting the first house purchased?
He said that the IPO agreement stated that he had to pay a dividend, so he distributed 1btc out of pocket.
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I see there was a dividend, 1428 sat/share yesterday. Have we already started making income? I thought we were still working on getting the first house purchased?
T&I is $125 or so per month.
Whoa, are you sure you have that right? Taxes everywhere I have lived have been at least 10x that. I guess you just have very low property taxes in your area?
Our taxes are pretty low. Not as low as kentucky, but still low.
This home is $1200-$1400/yr in taxes however I will apply for a tax reduction review because our purchase price is so much lower than the appraised value. The house is appraised by the county around $100k. If they accept the review/appraisal, it would go down to $500/yr for a term of 3 years.
Given the area, T&I shouldn't be over $30-40/mo on a house in that area...Very minimal.
Whoa, are you sure you have that right? Taxes everywhere I have lived have been at least 10x that. I guess you just have very low property taxes in your area?
Our taxes are pretty low. Not as low as kentucky, but still low.
This home is $1200-$1400/yr in taxes however I will apply for a tax reduction review because our purchase price is so much lower than the appraised value. The house is appraised by the county around $100k. If they accept the review/appraisal, it would go down to $500/yr for a term of 3 years.
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It's all fun and games until somebody loses an eye
Given the area, T&I shouldn't be over $30-40/mo on a house in that area...Very minimal.
Whoa, are you sure you have that right? Taxes everywhere I have lived have been at least 10x that. I guess you just have very low property taxes in your area?
Given the area, T&I shouldn't be over $30-40/mo on a house in that area...Very minimal.
Yes, $26,500 is what we're contracted for. To make all the repairs and enhance value (We figure repaired value should be $80k-$100k) it will cost us $18k-$20k in repairs.
Income should be in the area of $900/mo for this property, providing a simple ROI of 23.32%. However ROI will be infinite after we cash it out.
Income should be in the area of $900/mo for this property, providing a simple ROI of 23.32%. However ROI will be infinite after we cash it out.
Any estimation on property tax and insurance rates? Theoretically these subtraction from that $900/mo income, right?
Wow house like that really cost only 26k$ in US ? I wouldnt get 1 room flat in Czech republic for that
Yes, $26,500 is what we're contracted for. To make all the repairs and enhance value (We figure repaired value should be $80k-$100k) it will cost us $18k-$20k in repairs.
Income should be in the area of $900/mo for this property, providing a simple ROI of 23.32%. However ROI will be infinite after we cash it out.
Wow house like that really cost only 26k$ in US ? I wouldnt get 1 room flat in Czech republic for that
Make sure we get all inspections done. Do not rush the close 
HUD sent me a notice that all the paperwork on their end has been accepted and signed. Monday I'll be contacting the title company to see when we can close, may be as early as the end of the week, not sure really.
Gonna go get more interior pictures/video for the investors either Monday or Tuesday. Will also be getting interior repair stuff figured out a little more as far as measurements go so I can get some more repair lists going. Also buying a trailer on Monday which will save us a few thousand over the next few properties. Buying a roll-off container is $400/mo and the trailer will act as a rolloff that we get to keep (Additionally can be used to bring in materials I buy cheaper).
Gonna go get more interior pictures/video for the investors either Monday or Tuesday. Will also be getting interior repair stuff figured out a little more as far as measurements go so I can get some more repair lists going. Also buying a trailer on Monday which will save us a few thousand over the next few properties. Buying a roll-off container is $400/mo and the trailer will act as a rolloff that we get to keep (Additionally can be used to bring in materials I buy cheaper).
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