All Forum Posts by: Darron Stewart

Well, it's tight but it renting out so quick, sounds like you may be able to squeeze a little more out of rent.  With a home warranty, there will be no surprises.  My gut says to ride it out.  Here is a prime example, my mom and aunt bought bought condos in N. Va years ago, the market tanked for a while and my aunt had passed, my cousin took over and let it go since it was underwater, well my mom rode it out and two downturns and many upturns later, tenants paid for it many times over and it appreciated about 10 fold!  

No, appraisal for a loan is completely different from appraisal for county taxes.  County officials either do an appraisal in the office or by driving properties and can be based on numerous things such as an increase in average sales price of houses in the county/area.  Your appraisal is based on one individual hired by the mortgage company pulling comparable house sales and placing a guesstimate as to the value of your house.  Neither are exact and the county will not see what the hired appraisal determines. 

@John Chapman 

I know where you are coming from...did a flip and paid way too much and it was a 3br 1 1/2ba with 1 cg, limited the market and learned a lot, but made a $22k profit and learned!  Next was bought at half the price and shifted with the market, a buy and hold, now 4 years plus later and it has paid for itself!  Just learn from the past and do not repeat in the future, best of luck!

@Tim C. 

I would step back, tenant is paying, look at how the place is kept, adjust rent and monitor performance under month to month.  With a long term tenant and late fees you may be better off than kicking out, going a month or so with no rent while repairing and screening.

@David Cohen You are doing fine, a hundred or so per door seems to be working for you.  In the end if they all pay for themselves you will have a great portfolio.  The reason they look for 2-3% is more cushion for turnover times and repairs.  I'm getting close to 2% only because I make lots of low offers, but have only purchased a few houses too.  I buy at half of market peak and stick to pre-forclosures, foreclosures, or estates mostly.  My avg purchase is around $62k and worth $125k.  It's been a lot of hard work, but my plan is to have 5 tenant paid for houses in 7 years and am well on track at the 4 year point...  Find what works and repeat as often as possible!

@Account Closed  Have heard that investing in Texas tax liens is much better than most states, is there a particular reason you are investing in Fl?

Have found there is usually a ratio from the county tax appraisal numbers, for instance one area is Co Appraisal X 1.5 = FMV so if 67k x 1.5 = 100k. It's not exact, but typically it will get you a quick guesstimate.

@J H. Gather a little more info, such as what are rents going for, what did he want to rent place back for, how low is he willing to go, are there other deals with less or no hoa fees?  Just looking at the $435/mo for hoa and only $4k for a spread, no money to be made!  If he wants out so bad and you want to help, you would have to get him down to loan value and find a way to get the mortgage amount low enough to reduce his "rent" and give you a little profit.   

Just looked up payment would be 1321 and would guess taxes and insurance would be put you right at where he is currently, so he would have to rent back at the mortgage amount and give you his equity, plus he would have to buy a renters policy...just looks like his cost at best would not improve and you could be out any repairs, but there could be up to $50k in the deal if he were to sell at mortgage amount...  Best of luck!

@Matthew Gallacher welcome to BP and your investment future! VA loans are typically for owner occupied properties and the interest rates are typically higher, so I would suggest conventional, etc. Another option could be a duplex and live in one half while renovating the other then move sides... If done right, should be able to flip a few and then have enough cash to buy outright after that or keep one as rental and use an equity line to continue. I have flipped and have a friend that flips 1-2 every few months and our goal is a profit of atleast $20k each. Since you said starting in 2016, do a bit of driving and find areas that will be good for your turn and burns. Best to you, let me know if you have any questions!!!

@Juliette V. My gut tells me if you get an older unit that may need a little work and one that has a rental in the basement or a duplex for a hundred-ish and try to find three at 50k.  The one you live in, if bought right, should pay for itself and allow you to live rent free.  The three units plus your SD rental should provide you a few thousand per month, that will allow you to build up more and pay off the 250k loan, use for living or allow to buy more rentals.  Best to you in finding a good direction!