All Forum Posts by: Andy Collins

My average cash flow (real world) is about $350-$400 per house per month,,and most of the houses I actually have less than $10k cash in the deal (most bought 2-3 years ago at a great discount with hard money, rehabbed and refinanced with conventional mortgages.

If I were to go out and buy $200k houses with 20% down, I'd probable be better off doing something else, I invest for cash flow (but buy with increased equity in mind).

Long term buy and hold is NOT a way to get rich quick, it is a way to build cash flow and build equity over a long period of time.

Let's say you can build up to $300 a month cash flow per unit, and a unit is normally about $100k,, ,so lets say you do one a  every two years,,,after 20 year you would have 10 houses paying for themself with $3k a month in cash flow,,you would only have put money in for a few years because after 2 houses the cash flow would be paying for most of  the down payment ($600 mo x 24 months = $14.4k),,so after the third house your cash flow would be taking care of the $20k every two years you need for the next house,,,add another ten years to this and figure an increase of even 2% per year in rent increases,,the numbers can get staggering, and this isn't even figuring in the amount your paying down the mortgage and increased equity.

Again, this is a long term process,,not a 'quick get rich' scheme

I appreciate what your dealing with, but I think a PM that comes up with a plan that involves moving out someone without a court order that has claimed to have rights as a tenant, is a way to potentially end up in a mess legally.

If you had done that before he came up with this "lease" you might be able to get away with it,,but I wouldn't try it at this point,,obviously the matter is being corrected now, but I would question the approach the PM came up with, and question if you want that type of thinking working for you going forward

a license is required to allow a person/business to promote a business (for a business there are rules for promoting its own business, and seperate rules for promoting a business not on the property.

Yes, the property owner can be fined,,,if you have any experience with billboards you know that they have very large legal teams for a reason

You can get up to 10 conforming mortgages, you will need to find a mortgage broker that deals with investors, they will know what lenders will go to 10 (some won't).

The biggest difference between mortgage 4 and mortgage 5

1.  a 720 mid score is required

2. 6 months PITI reserves on each rental unit required

3.  no cash out refi on any rental unit after you get the 5th mortgage (but you can get a  cash out refi on your residence.

In the DFW area good contractors are hard to get scheduled right now,,,if you go asking for some sort of discount or paying them with anything other than cash,,they will laugh at you.

I just got through waiting nearly 2 months for my favorite contractor to work on a ceiling in a living room, it wasn't an emergency, and I have to wait while he does $50k bathrooms in rich areas, to come work on my rentals,,,thats the way it is right now

And BTW, I still don't understand what your talking about 10% of their bid etc..please explain, I must be a little slow

Get a loan on your new property as a non owner occupied,,,your playing with fire the other way.  With all of the mortgage fraud from a few years ago, you don't want to be a poster child for "we got this person trying to commit mortgage fraud and made an example of him".

You made a one year comittment, unless something truely changed in your situation, you will be committing fraud, say its a gray area, etc etc, you still bought your first property with plans to buy another OO property 7 months later,,,that my friend is clearly fraud.

Play by the rules, you will sleep better at night knowing you don't have something "that could be discovered and really screw up your life"

@Frank Frione 

When you say you have 'have a service no one else can offer' can you elaborate/

@Pyrrha Rivers 

You have to remember, there are 3 credit reporting agencies, Equifax, TransUnion and Experian,,,for a conforming mortgage they will pull a FICO for all 3.

For credit cards/personal loans/car loans etc each bank normally has one they use,,,Discover normally uses Equifax, American express tends to use Experian, etc etc, but they can change, or some will give you a card based on one Credit Reporting Agency, but pull a different one if you ask for a credit line increase (weird I know)

Many of the banks use special 'formulas' for credit cards, car loans etc,,its not a one size fits all.

The only score you can say "I have a "xyz" score (Trans union 788) is if your using FICO,,,for various reasons I at times will pull my credit from several different services the same day,,,I may have a score vary by as much as 100 points WITH THE SAME CREDIT REPORTING AGENCY,,,,Smart Credit may say my TU score is x, my privacy matters may say my TU  is a totally different number,,,this is why its so confusing

just based on the rental income and price, its a good deal ,,of course the other things mentioned above, deferred maintenance etc, should be taken into account.

If I can be all in below $90k for a house with a rent of $1600, then I would be look at the details,

In the Dallas area you won't find that relationship between price and rent unless your in a C- area

@Matthew Lee 

  believe it or not a couple of months ago myfico started offering experian again,,,not sure what changed, but you can buy all 3 again

andy