All Forum Posts by: Darren Fryson

There is a property that popped up it's cheap it is two buildings on one lot. Both have tenants currently in them. The unit generates 1100 a month. 

I'm wondering why the unit is for sale. Is it because they haven't been paying rent and the owner just wants to dump it? How do I check or verify that they are current on rent? I know I'll have to redo their leases. Should I do a price increase?

I'm thinking the extension of the eviction moratorium has something to do with the discount. 

How do I make sure the place isn't a total pile that I'll be dumping 1000's into? 

Is there landlord insurance I can get that will cover rent for like 90 days if they just stop paying?

like I said tons of questions? 

There is a property that popped up it's cheap it is two buildings on one lot. Both have tenants currently in them. The unit as a whole generates 1100 a month. 

I'm wondering if the reason the unit is for sale, is because they haven't been paying rent and the owner just wants to dump it. How do I check or verify that they are current on rent? I know I'll have to redo their leases. Should I do a price increase?

I'm thinking the extension of the eviction moratorium has something to do with the discount. 

How do I make sure the place isn't a total pile that I'll be dumping 1000's into? 

Is there landlord insurance I can get that will cover rent for like 90 days if they just stop paying?

like I said tons of questions? I'm sure there are a bunch I haven't even thought of.

The real tricky part it's clear that lending from traditional banks is drying up. 

There are gonna be a lot of shady folks popping up, with promises of money for REIs

be careful with who you partner up with.

An overlooked option is Househacking to get started. Use an FHA 3% down get ger a duplex and live on one half and rent out the other. It only has to be your primary residence for a year. Then refi to a conventional loan rent out the other side. Now, in one year you will not have any real equity to take out. However, you can refi to a lower rate, or just flip it and pay no taxes cause you lived in it. Take that money and repeat this process.

example 

Buy a cheap duplex for 75,000 3% fha is $2,250 

You rent out the other side for 700 a month this helps you pay off the mortgage

You do some work so it's now worth 110,000  you can have like 37,000 profit 

Rough numbers but you get the idea

There are FHA loans for stuff like this like called 203 something.

I have two options take some saved cash pay off the rest of the leftover mortgage. Then I can finance a cash out refi for the whole amount over 100k. Or just wait it out maybe by the end of Jan early Feb the freeze will be lifted

  I don't know if i can still get that for a investment property. Maybe private lender instead  if a bank or credit union i know im gonna get jammed up on the interest rate tho.

My local lender told me this last week due to the covid ********. Why it would affect that? The eviction moratorium?

This has really thrown my plans to use the equity in my home to buy more rentals. Is there a workaround?