All Forum Posts by: Arlan Potter

looks way too thin for me. especially when lots of work needs done. I know a lot of people don't like the 2% rule but 4 years ago we bought an 8 plex. Two bedroom units. Exterior in decent to good condition, interiors a little weak but not terrible. Have stayed rented with average tenant turnover. We put 10% down. Probably a C or C- area

We paid $30,000/unit. they were rented for $550/month so almost 2% 

8 Rentals at 22, Sounds like you are doing great on your own.

You have a double closing, it costs more than a single closing. Simple enough. 

The original seller wont be in the room with the end buyer so they may never know how much you are making. It shouldn't matter to them because they are getting what they agreed to. Now if you beat them down on the price without mercy and then they find out you are reselling for a huge profit, don't expect them to be thrilled about it. It depends on how you treated them.

I would sell the $275K house that rents for a measly 1595 and buy 5 $50K houses that rent for $800/month

With $4000/month rental income you are on the way.

after rehab, get rented, you refinance the property, borrow against the new appraised value of the rehabbed property. Hopefully is will appraise for enough to pay for the original cost plus the rehab and more cash to buy another property, or to live on.  The only issue is that when doing this you usually end up with little or no equity in the property.  That is ok as long as the property is rented, but if vacant, the loan payments are high and have to be made out of your own pocket.

Looks too thin to me. ARV ( $78000 - 21000 repairs) = 57000 times 65% = 37000 max offer for a flip

Sell it and divide the money. Unequal partners will be a nightmare of bad feelings.

Or set up the property in an LLC (3 owners) rent it out as a vacation rental to pay all the expenses and let each person have "X" amount of weekends per year.

Sounds about right. Or longer.

Find an REI group that meets close to you.

I have a couple of associates. If I need cash, I get it from them,.  I pay them 10%, for any part of a year.

Once for 4 months, once for close to a year. Easy money for them. Great for me.

Offer them 10% for the 6 months. $2,000          Don't be cheap and make it 10%/year $1,000 for six months. Make it worth extra for their help.

I had an old friend that would loan me for 90 days. He didn't want a note or any security, just a signed check from me for the loan plus interest, dated 3 months ahead.