All Forum Posts by: Chris Eidson

Stan,

This looks like a pretty good deal.  How did you establish your rental rate?  Did you contact a property management company or use any online tools?

I can borrow against the savings in my credit union account. The rate is 1.95% (only .2% net over the interest rate they pay me). I can get a 10 year amortization. The turnaround is about 48 hrs to fund. Seems like a no brainer, for the following reasons:

1. It will basically be just like a cash purchase, so I avoid closing costs

2. The net cost of borrowing is almost nothing.

3. My cash becomes available again monthly as I pay the principal down.

I know most investors love to leverage and that my cash flow will be a little tighter because of the shorter amortization schedule, but I'm just trying to understand why I wouldn't do this? Your thoughts are greatly appreciated.

I can borrow against the savings in my credit union account.  The net cost to me is .20% over the interest rate they are currently paying.  I can get a 10 year amortization.  The turnaround is about 48 hrs to fund.  Seems like a no brainer, for the following reasons:

1. It will basically be just like a cash purchase, so I avoid closing costs

2. The net cost of borrowing is almost nothing.

3. My cash becomes available again monthly as I pay the principal down.

I know most investors love to leverage and that my cash flow will be a little tighter because of the shorter amortization schedule, but I'm just trying to understand why I wouldn't do this?  Your thoughts are greatly appreciated.

@Andre Jernigan

I asked because those terms may be hard to come by. SFR usually require more money down and rates may be a bit higher. I'd love to know if you can land something like that.

@Andre Jernigan

Have you already found financing with that down payment and rate?

@Kevin Kenney

Where is the house located and how much are you insuring it for?

@Eric Schultz

Thanks for sharing that info on the order of returns.  The vast majority of people never consider that and get burned badly as a result.

@Frank Wong

Thanks so much.  That was my initial impression.

For those of you who are buying foreclosures in the DFW area, what price points do you find the least competition in?  I'm looking at the 400-600K range and was wondering what you have been seeing at the sales.  I'm actually looking for a new primary residence.

@Jordan Pothier

search "flipster" on the search box here.  There are several discussion threads.