All Forum Posts by: Alexander Felice

They just want the check AMOUNT to be correct, they don't care where it comes from. a POF can be as simple as a banker writing on letterhead. It's a nothing piece of paper really.

Have you talked to any banks? What pitfalls have you run into?

I mean, there are other financing options other than primary residence, that don't require creative approaches. The bank I work at would finance an investment that cashflows (if you have the credit to back it) on our commercial side. We do 80% and sometimes more as well.

As for the 25k down, I guess I'm in the minority around here who thinks putting this down is a good way to buy properties. If you really don't want to, it's time to start soliciting friends and family. 

Talk to some banks, you may not have to drop all 25!!!!

Fixed costs generally refer to overhead that is static between jobs and doesn't change, or at least can't be removed. This is hard to use in real estate since everything is pretty much variable when you're talking deal-to-deal since everything is a variable cost based on the house. 

However, most people on BP refer to fixed costs as non-remodel costs. This would be holding costs, insurance, utilities, closing costs, etc. While all remodel costs would be considered variable cost. 

@Rodney Marcantel

@Rodney Marcantel is correct in that pretty much the only true fixed cost you will experience is closing costs since it's (generally) a set 6%

I have a condo and I have to say I kind of regret it. The HOA fees are just that, fees. They will never generate equity and (from my experience) they will never go down, only up. I'm sure there are still deals to be had while including those fees but I find them to be more hassle than reward.

You also have the HOA politics and potential for special assessments with a condo.

Also with a condo the home value is more closely aligned with the neighborhood rather than it's stand alone features. So your potential for appreciation (not that you should count on it anyway) is limited. 

My personal opinion is to shy away from them if you can. 

 I agree with Brent. You're not buying much equity, you're not getting cashflow, and you already know you'll have 3 months without rent within the first year.  

Who are you talking to at the bank? Talk to a commercial lender, it's the same process for my bank but the retail side just can't make that happen. 

I work at BB&T and I know there are some local to you. Good luck! My heloc against my personal residence went exactly as @Reggie Maggard stated. They gave me about 20k less than they originally quoted me after underwriting got a hold of it. 

I'm sure it's impossible to find an exact number, I'm sure it's difficult to even come close. 

@Patrick Britton probably had the best answer, but that data would be difficult to mine. Additionally it doesn't' take into account flippers who take longer than 6 months or didn't use an LLC. Also, you said active flippers, your data will be skewed by people who are accidental flippers, or just need to dump a house, and I'm sure of dozens of other scenarios.

I don't know why you need this information, but I imagine the work to find the data would be far more costly than the worth of the data afterwards, especially considering I expect the error bar to be quite large.

This is just my best guess though. Maybe someone already did all the trouble and has the answer. I just don't see the value in knowing (other than curiosity) so who would bother?

Welcome! 

Plans of attack are really good, even when you deviate. Winging-it just doesn't work. 

Also, I will say the only thing I know about Mebane is you have an Allen Edmonds outlet that I can't resist driving 2 hours for every few months. I'm so jealous

I put laminate in specifically for our dogs. 3 (insane) boxers. I know plan to put laminate in all of my rentals. Stuff holds up like a beast. 

To disclose I have 12mm thick planks. Nothing fancy though, $1.78/sqft from Sams club if I remember correctly. In my experience carpet seems to get ruined faster. Planks in main areas, carpet in bedrooms is my plan for the future. 

Welcome! 

I'm in Fayetteville as well. Stayed here after I did my time at Bragg. Bought our 2nd house about a year ago, looking to scoop up #3 in the next few months. Fayetteville is a good area for rentals! 

Good luck!