All Forum Posts by: Steve Vaughan

I guess I would get pre-approved/pre-qualified first.  May save a lot of time.  As @Bill Gulley  suggests, tell the bank what you are trying to do.  A non-seasoned investor buying out of state may require more down payment and other stricter terms.  Please keep us posted how this is going!

Congratulations on your first CF property!  Rent rates are a factor of supply and demand.  Are macro factors like job growth and population growth outpacing the rate of new apts/rentals being built or coming on the market?  In my area hundreds of new-build units are coming on the market after years of under-supply.  I am not buying the same type/style/location/price range of these new units.   Hopefully employment and population growth exist near your rentals.  In the meantime be a rockstar property manager, keeping your property up and take care of your tenants.  It's good you recognize you have a good thing going.  Work hard to keep it.  Happy tenants don't look for new places to live as much! 

When every house in the country is available at FMV, I guess the only variable is the lease option. Since it will be you doing the lease option, not the seller, I'm not sure why this house would be chosen over any other house available at FMV. In real estate we have to buy right. Give the seller some time on market to season. Don't fall in love with an investment property. She 'wants' FMV. Time may make her 'need' a quick sale. NO - DO NOT BUY AT FMV unless the terms are fantastic. There are no terms here. Good luck!

Congrats on having zero cc and auto debt! That will serve you well. I wouldn't have individual properties in separate LLCs. It's cumbersome and redundant. I would transfer 2 properties into my favorite-named LLC. If they are named after the address, get a little creative. Will be easier to deal with 1 LLC with 3 properties in it as far as accessing equity through loans or leverage. Will be a heck of a lot easier at tax time, too!

Like most things, it's a function of time and cash. Quick sale as-is, all cash = really cheap.  Fix er up a bit, do a few showings, require all cash still equals cheap. 

Leave the existing financing in place and work with your equity equals highest price long-term.  They don't mind doing some fix-ups either usually.  What kind of financing exists on this property?  Anymore info you could give about your situation would help. 

It's all relative to your local market it seems.  Just saw a guy analyzing a deal in IL, $16k purchase price, $550 a month rent.  What??  Here SFRs don't work at all for the most part.  I have done well at the 1% rule when I can get it.  Anything better is gravy.  Acquire in the best neighborhood possible always, of course.   A little less cashflow in a little better neighborhood will serve you better long-term in price appreciation and tenant headache reduction.

@Tim G.  good idea calling bandit signs for wholesaler or property leads.  Our area bandit guys are doing sandwich lease options to the tenant buyer, but we are a small market and don't have many.  Maybe contact some folks that have posted for rent ads on craigslist, email them trying to sandwich lease option some properties.  A little $ a the front end, monthly, and more at the back. 

From what I have learned on BP, the wholesalers work directly with owners through direct mail or websites. Their properties don"t seem to be found on the MLS. Good luck!

Yeah - another buy and holder!  Distressed owner sale, then?  The property doesn't seem distressed.  I have sticker shock.  Here I am lucky to get a single-family for 110x rent (that's why I am a multi-investor, mostly!)  The mgt fee as a % is huge, but I can understand the mgr needing a minimum.  Costs per unit should drop as you grow.  Is this property in your area?  If so, I would manage for myself.  Could someone explain comps support '24-27' valuation?  Thanks!

You are so lucky.  Our transfer tax is a % of purchase price and can be thousands!

Oh- with back up issues, I would get a rooter guy with a camera as part of the inspection  process.  Probably another $250.  I would ask the seller to provide that and be there to watch it and ask him questions.  When in doubt, get as much quality information as possible!