All Forum Posts by: Shari Posey

@ Aaron--You are buying $50k houses (3BR/1BA) in the suburbs and renting for $750 nowadays? Or was that an average in the past 2 years?

It really depends. I would buy an single family home over a condo but that said, I own 3 condos and one single family so I can provide a good comparison. (I live in one of the condos).

I have good renters in all of them and the HOAs are all o.k. but one of them does have a rental restriction. At the time I purchased that one, I was one of the few rental units but now there's a waiting list so I'm screwed if my tenant leaves. On the other hand, I got a great deal when I bought that unit and in the 3 years I've owned it the price has gone up about 40% so I could sell and make a nice profit.

I think the bottom line is to make sure you get a good deal when you buy it so if you decide you don't want to keep it later, you can make a good profit.

What about a portfolio lender who doesn't sell their loans back to FM/FM? The property is in CA. I've got my favorite mortgage broker working on this but I wanted to put out some more feelers.

Here is the situation...a buyer is trying to buy an owner-occupied SFR with 45% down, mortgage amount of approx. $240k. Great credit, good employment history. The problem has to do with her lack of a working visa but she does have the right to work here. It appears she don't fit perfectly into Fannie Mae/Freddie Mac criteria. This seems like a no-brainer for a private lender. I have even considered making the loan but I'm a little short of $240k cash but I might be able to find someone to come in with me for the rest. My question is, how do I find someone who would be interested in making this loan and how fast can it be done? Also, if I can find someone to go in with me to carry the paper, is there someone who can help me write the loan (escrow?)?

Since I'm buying as non-owner occupied 4-plex I need to put 25% down rather than 20%.

Trash is collected through the property tax bill.

The area is growing but employment is somewhat seasonal, which is a worry but this is a working-class area and 3 of the tenants have been there longer than 2 years so I think the rental area is stable enough. I would love to get more properties in my own backyard but they just don't pencil out.

We decided to put in an offer and see what happens. It's a short sale so there's a long process ahead...

Matt, I've thought about most of that but didn't think about it being easier to qualify for another property--that makes sense. I was quoted 5.2% for a 30 year with 25% down.

In our MLS system (southern California) you are not allowed to doctor/Photoshop photos very much. You can't misrepresent the property. There's a company that I use called OBEO that has a feature where the buyers can change the property to see what different paint colors, materials, etc. would look like in the home. Maybe if you clearly demonstrate "before" and "after" in your representation it would be better.

Greg,

Personally, I'm debt adverse but that's just me. You'll see a lot of debates about that topic on BP. I hope to be living on my investments in 15 years or less so that's why I want them paid off although maybe investing the cash flow while on a 30-year-loan would end up the same. (Maybe some people with more analytical brains could calculate and compare that over 15 years.)

I've actually been looking for properties that I can buy with cash only but haven't found any that make enough money. If I could, I'd be hiking in Switzerland right now, spending the fall in the wine country of Chile and my winter on the beach in Bali. That's why I want to own free and clear.

Regarding buying in a better neighborhood, it's kind of tough because I don't have enough down payment to be much over $400k and even at that price, I'm not going to be in an A neighborhood. Plus, I haven't found anything any better than this--in fact worse. I would say this property is in a low C neighborhood. An A neighborhood would cost about $600k for a 4-plex.

I will property manage myself. I'm not as interested in cash flow for today as I am with future cash flow. We always reinvest any cash flow to pay off the mortgage faster.

My thought is that about the time the loan is paid off the sewer bond will be so low that I'll just pay it off, and I'll be 65!

At $200k, I can get this property and another similar property.

I've looked at some turnkey company opportunities out of state and I just don't see great numbers there either.

Any new thoughts?

Forget Long Beach for properties that make sense. In OC, I'm thinking MAYBE some lower-end properties in Anaheim.