“Must Know Like the Back of Your Hand: AI-Powered Info — Part 3”

Описание: “Must Know Like the Back of Your Hand: AI-Powered Info — Part 3”

🏆 Zero Guesswork Wealth Plan - Legendary Cut

You are not chasing houses; you are building a cash-flow engine that feeds your future.

Start with $30k, a 515 credit score, and unshakable discipline. End with 8–16 doors, $3,500–$8,000/month net cash flow, and $400k–$1.2M equity.

This is the playbook movies try to imitate.

🎯 Speak “Lender” Like a Pro

Script (call/email):
“I am purchasing a 2-unit primary with FHA (Federal Housing Administration) 3.5% down. My score is improving (target 640). What are your DTI (Debt-to-Income Ratio) and reserve requirements, and can we close in 45 days? If I pursue 3–4 units, do you require the FHA (Federal Housing Administration) self-sufficiency test, and how do you calculate it?”

⚠️ Note: For triplex/quad, the net rents must cover PITI (Principal, Interest, Taxes, Insurance). Ask early.

💳 72-Hour Lift → 30-Day Cleanup

Slash utilization to less than 9% before statements (leave $10–$30 on one card).

Add rent reporting + Experian Boost.

PFD (Pay-for-Delete) letters first (30–50%); if denied, settle to $0.

Autopay “Minimum Due.”

Story: One investor cut utilization from 74% → 8% and jumped +82 points in 45 days — unlocked FHA (Federal Housing Administration) terms, saved thousands.

🛡 Legal Armor (Days 7–21)

Form LLC (Limited Liability Company), get EIN (Employer Identification Number), open business checking (no commingling).

Bind $1–2M umbrella policy.

Use attorney-vetted contractor agreement + lien waivers and lease templates.

Lesson: Handshakes make friends; documents build empires.

🛠 Rehab & Lease-Up (Months 2–4)

Standard scope (repeat forever):

Paint + LVP (Luxury Vinyl Plank flooring): $2–$4/sf.

Fixtures/lighting/hardware: $600–$1,500/unit.

Curb appeal: $250–$750.

Payment rules: Materials at delivery, milestones only, lien waivers each draw, change orders in writing.

Pre-lease by Week 3: Screening = income greater or equaled to 3× rent, no recent evictions, renter’s insurance required.

MTR (Medium-Term Rental) option (travel staff): Furnish $2.5k–$4k → +$300–$700/mo, 3–6 mo terms.

🔄 Compact BRRRR (Buy, Rehab, Rent, Refinance, Repeat) (Months 6–12)

Buy $120k • Rehab $15k • Costs $5k → All-in $140k

ARV (After-Repair Value) $180k → Refi @75% LTV (Loan-to-Value) = $135k

Equity ≈ $45k • CF (Cash Flow) ≈ $200–$350/mo

DSCR (Debt Service Coverage Ratio) example: NOI (Net Operating Income) $1,135/mo, Debt $855/mo → 1.33 ✅


If DSCR (Debt Service Coverage Ratio) is thin: add RUBS (Ratio Utility Billing System), pet rent, parking/storage, laundry; or lower LTV (Loan-to-Value) / buy down rate.

📐 Underwriting Guardrails (Never Break)

MAO (Max Allowable Offer): (ARV (After-Repair Value) × 0.70) − Repairs − Fees

NOI (Net Operating Income): Rent − (Taxes + Insurance + Maintenance + CapEx (Capital Expenditures) + Vacancy + HOA (Homeowners Association) + Mgmt (Management Fees) + Owner Utilities)

DSCR (Debt Service Coverage Ratio): NOI (Net Operating Income) ÷ Annual Debt at 1.20 or more.

COC (Cash-on-Cash Return): Cash Flow ÷ Cash In at 8–12% or greater.

Value Add Rule: +$100/mo NOI (Net Operating Income) at 6% cap ≈ +$20k equity

🗓 Cadence That Compounds

Daily: Analyze 3 deals • Make 1 offer • Message 1 operator.

Weekly: Tour 1–2 properties • Get 1 contractor bid • Update tracker.

Monthly: Close 1 or more doors at DSCR (Debt Service Coverage Ratio) at 1.20 or more & COC (Cash-on-Cash Return) at 8–12% or greater.

Parable: Drops do not drill stone by force, but by consistency.

🧯 Risk Controls (Downturn-Proof)

30-yr fixed loans only.

Stress-test every deal (−10% rent, +1% interest) → still CF+ (Cash Flow Positive) or pass.

Attorney leases + umbrella insurance.

LLC (Limited Liability Company) banking only, lien waivers every draw.

3–6 months reserves (personal + operations).

Lesson: Offense builds wealth; defense keeps it.

🧭 Lifestyle Rule (No Faux-Rich)

At $1,000/mo net, allow $150 upgrade.

At $2,500/mo net, allow $400.

3:1 Law: Add $3 NOI (Net Operating Income) before adding $1 lifestyle.

📌 Example Snapshot (Buy Only if Price Fits)

ARV (After-Repair Value) $180k, Rehab $15k, Fees $5k → MAO (Max Allowable Offer) ≈ $106k.

Rent $1,800, OpEx (Operating Expenses) $600 → NOI $1,200/mo.

Debt $855/mo → DSCR (Debt Service Coverage Ratio) ≈ 1.40, COC (Cash-on-Cash Return) ≈ 20.7% (if ~$20k left in).

👉 If seller will not meet the math; walk. There’s always another deal.

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