All Forum Posts by: Adam Brown

Greetings BP!

I was just wondering when do you get the home you're buying inspected? I'm in the approval process, my information went to the underwriter. I should hear back in a week or so. Just wondering is now the time to ask for a house inspector to walk through with me?

Respectfully,

Adam

Alberto:

I actually did some research and it could behoove me to be under-leveraged. Meaning that, if property value were to every fall, rental prices ever to go down, it's better to be the guy with the lower rent, as opposed to the guy with the more expensive rent. Yes, the place across the street is awesome, yes, I'd rather live there, but realistically, I'd be better positioned if I have lower PITI, and lower rents than him in the event rental prices or property value ever goes down!

I was told not to keep up with the Jones' as a child. I truly believe that.

Adam

Alerto:

Thanks for responding. 

I plan on buying an existing business in the long-term, and just passing the bar/becoming a better asset where I currently work. With respect to real estate, I'd like to own an apartment building in the long-term, and buy more multi-families in the short-term. 

Respectfully,

Adam

Greetings:

Currently looking at a buy-and-hold. Price is $350k (including closing cost) PITI $2500, cash flow $2800. I plan on living on the first floor.

A new house was built right across the street, and it has a garage, balconies, and brick front. Gorgeous. It even has a fence, which is great because the crime is a little high. I want to LIVE there, but the price would probably be $440k. However, the cash flow yield will probably be correspondingly higher! So, my question is, how should I feel? I was thinking the value of my house would go up, if the neighborhood is building these sort of nicer homes. But, personally, I'd rather live there, because I have a car, and would feel safer with a nice fence. 

Thanks for your time and consideration.

Respectfully,

Adam

Also, are all first-time purchases usually going to get you in the deal "upside down" ?

Greetings:

How do I know I'm paying too much for a property? 

I have an offer to buy for $350k, but an assessment was done and aparently it's worth $150. 

The property was renovated for $133k and the land value was $21k. So, I see the windfall the sellers will make. How can I push-back, and negotiate? 

The rental income will be $1300 per unit, it's a three family. I plan on living in one of the units, and buying fha. 

Please advise. Thanks

Gentleman:

Thank you for the very enlightening post.

I didn't know what PITI was, and presume that the 2k mortgage is WITH PITI.

Additionally, I've heard of this two-year rule in the context of creating an LLC and owning real estate through one, in New Jersey.

I will certainly think twice, look into duplexes, and not jump the gun! Thanks.

Greetings, and Happy Holidays to you all!

I'm highly considering a property, selling for $350k, 100% occupied, $3k/month, i.e., 36k per year. Mortgage 2k/month.

This is my first property, so I'm being lead by a guru (who I will not just rely on as Mr. Turner suggest). I'm doing a self-appraisal based on comps, and will be having an independent inspector do a walk-through with me. 

Is it more reliable to try to get in a duplex to occupy myself? Or does it not make a difference? Additionally, is it difficult or impossible to do a similar transaction a year from now? How long would you wait? How do I find out the class of property i'm investing in? The property will be most likely section 8.

Nathan:

Thanks for your comment.  I like the way you talk real estate. 

The five year model is based on Brandon Turners "Real Estate In Your Twenties 7 years to 7 figure wealth." He discusses "forced appreciation of 10%, and he suggest purchasing property at a 20% discounted rate. So, my goal is based off this hypothetical model he creates. 

Thanks!

love it