All Forum Posts by: Brenda Maddox

Hi Everyone, 

I see these different apps and memberships to help look for homes, evaluate properties but I am too frugal to blow the money. Anyone out there have found an app or two or website that without it you wouldn't have made the money or found the investment? Would you mind sharing which ones you love even though they cost money? I am considering rentometer, deal check and foreclosure.com but I don't want to just throw money down the drain. Thanks! 

@Jason Breckner Thank you for your input on it, definitely trying to figure out how buy in this crazy market. It a challenging time to want to be an investor and it's jacking the prices way up too. 

@Justin Phillips Ok Great info thanks, what did you end up using your Heloc for the first time? An investment? Did you learn any lessons in hind site about using one? 

Yes for sure it is a sellers market, I can't believe the amount of offers I see going into these beat up properties, even the expensive ones. I am good at digging through and finding the gems but just can't compete with the cash people.  Thanks for the advice!

@Justin Sherrock Ok thanks for your perspective on it, what would you do with 170,000 of cash right now? 

@Justin Phillips Ok what I want to do is get cash out so I could maybe get a foreclosure on the court house steps and maybe flip a few homes? Debating between doing a few flips vs find a home fix it up and rent it out. Right now everything I look at has a ton of offers on it and most of them have cash. Also, if I do the Heloc then that is likely to affect my debt to income ratio so I don't want the Heloc getting in the way of me buying another home. Thanks for your help.

@Michael Metzger It is my primary home and I have a 2.62 rate on it and it was a 15 year mortgage, I think I have 8 or 9 years and it will be paid off. I want to try to used cash to buy and fix up other properties. I mostly want to buy and hold in really nice neighborhoods but it is difficult to be competitive with these cash buyers. I also need to move really quickly next time I see one and have done the calcs and know it might also cashflow. I just don't know how to get started, I am thinking it's analysis paralysis and it might be time to take action. There are so many great ideas, cash flow a property vs solid equity property in a class a neighborhood vs flip a couple to get some cash. Thanks for responding, I appreciate it.

Hi Everyone,

I am in Analysis Paralysis phase... I have a home with some great equity in it. I could get a Heloc right now with a low interest rate and get 170,000 out so I can invest in other things. Alternatively, I could refinance for a 30 year and get the money out. Which would you do and why? Thanks for your help.

Hi Everyone, 

Newbie here, Can anyone tell me how you would go about arranging paying investors back? I am trying to wrap my head around how to get this done but have never used OPM and have NO CLUE and I feel super awkward about even asking people I know.

Ex. Let's say I have identified a house that I could buy for cash $100,000 for a short sale(mostly with OPM.) Let's say it takes 1 year we fix it up dump 30,000  into it and then we could a turn rent it out (other houses in the neighborhood $200,000 to $280,000.)  It looks like it could rent in the $1500 /mo so a decent cash flow. So at this point I could get a conventional loan and put the renter in there. So the investors are out once you have a loan or sell it correct? What is a typical percent that you have paid your investors? What is a fair amount? Ok let's say we get it done in 3 months, how much would they earn on their money then? 

Thanks in advance!! Brenda

Hey there, I am a newbie at this calculating stuff but I would suggest you watch this video by Brandon Turner and it lays it all out in the four square.

Mortgage, property tax, HOA, utilities, Lawn care, Vacancy, repairs and cap Ex and property Management fees. Good luck.

(8) Calculating Numbers on a Rental Property [Using The Four Square Method!] - YouTube