All Forum Posts by: Paul Beauchemin

I've used this strategy several times now. Haven't sold any of my homes. You do get the benefit of getting of OO financing on the home I move into. Banks have usually considered only 75% of my rental income.

Over time rents have increased and turned any of my homes that were break even into positive cash flows.

If the property is worth $30k less then he owes, can you get a short sale?

Otherwise, sounds like you are betting on getting retail value.

I'm not sure if they'll last forever, but I've bought many old (100+) houses. Many have real 2x4's and 2x10's and seem more solid then new construction to me. The main problems have been updating electrical and plumbing to todays standard. Keep the water out and they'll last a long time.

I think you need both - one to insure your rental. The umbrella policy can help protect your assets if (when) you get sued

White text on a black background is a big readability issue for most people.

The other major issue with your website is keywords. I don't know what your purpose is, but you will not attract much organic traffic from the SE's with the keywords you are using.

Some recommended reading - "I Don't Have Enough Faith to Be an Atheist"
http://www.amazon.com/Dont-Have-Enough-Faith-Atheist/dp/1581345615/ref=sr_1_1?ie=UTF8&s=books&qid=1252600154&sr=1-1

The authors develop a persuasive case starting with how the Big Bang makes the case for a creator, why monotheism is the only logical theistic belief and how the New Testament can be verified.

Per the IRS - I don't think L/P will qualify

I prefer single family primarily because of the liquididty. RE already has poor liquidity and market for multi-units is much smaller then SFR.

I also believe that I can attract a higher quality tenant into a SFR, so I generally have a lower damage rate.

I expect that nationally we might have another mortgage crisis and a double dip recession, impacting prices negatively. See
http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/

On the other hand the "real estate is local" talk is quite true. In the WNY area housing never rose much more than 5% per year throughout the boom years and even when national prices are dropping our market continues to grow ~5%

A lot will depend on the financial condition of the banks when interest rates go up (and they will have to at some point due to all this money the Fed has injected).

I had a bank call a loan on my first home in the early 1980's (which I tried to sell with a wrap). At the time interest rates had jumped to 17% so they got greedy.