All Forum Posts by: Chris C.

without knowing the details of the deal, it looks like you did account for everything.  you have 10% for vacancy so it would be in a B- or so neighborhood? thats slighly longer than 1 months rents

if you backout, they would have to disclose that the house has mold in it to other buyers.

also, im not sure about OH but a lot of states say that if you are the homeowner you can remediate the mold yourself (which would save you a hefty bill) 

no washer and dryer or no hookups?

Anyone know of a good property manager in central PA?

customer service is poor, and once you get added to their email list it's hard to get off of it.  even after you hit unsubscribe.  It could just be the properties I was looking at, but I see a lot more bids from the banks

Ive delt with forclosers and auction sites before. So far, hubzu is my least favorite. 

Same

 I seem to be missing something.  If i buy a house, say 100k, and put 5% down (5000) and it cash flows (after all expenses including mortgage) $200/month.  the only way my cash flow would increase is if the market rental rate increases.  As my monthly mortgage payment would be the same every month, for the 30years of the loan.

If you're talking about making extra payments so that instead of taking 30 years to pay it off, you pay it off in 20... i don't see why this is a problem.  I compared paying a property off in 15 years where all the cashflow was eaten up by the mortgage vs taking 30 years to pay it off, and found that around year 25/27 the person who payed it off in 15 years was money ahead.

While yes, selling something new will have you spend less on maintenance, and in the long run the expenses of a SFH get to 50%, if you budgeted for 50% expenses when you first bought it (capex = value of item / life of items) you would still be paying / budgeting the same amount....50/month for capex and you only held it for one year might mean you didn't pay for anything and you get that extra $50-*12months when you sold it. but in year 30, you still are budgeting $50/month for capex, but yes you might have paid out over the life time of owning it, all the money in your budget to fix the hvac, etc. and in the end you would walk away with nothing extra. the analysis wouldn't change between how long you hold it, only the actual amount of $ in your pocket which isn't necessarily guaranteed (your hvac could last 50+ years by some miricle)

i do agree that equity trapped in a house is dead equity (cause your CoC return each year would go down if it was 100% owner occupy, but it wouldn't change at all if it was 100% tenant occupied). But are you saying that if you have tenants paying off a house and you get to the point of have 50% equity in the house, you should refinance (always be refinancing??). Your CoC return would stay the same, but when you refinance it would be like getting extra money for free.

 how does owner occupancy get you a write off of 50% profits?  as i'm unfamiliar with CA laws, a quick google search said you only get up to 7k.  Wasn't sure if this was some tax write off i didn't know 

Not much is mentioned about prefab homes.  Mostly i see turnkey purchases, maybe a major gut jobs, but i haven't seen many land development posts.  I came across a piece of land and I'm trying to figure out if its worth it.  The house is in total shambles so it would have to be tore down and build a new house.  While i believe building a new house would still put me in the black... has anyone instead just bought a prefab home and put it on the land?

or if you have advise for analyzing development deals, i could use that too