All Forum Posts by: David Robert

I previously used a local bank for financing, and they continued servicing the loan since I got it. They also give me a really nice checking account due to having loans with them. But, a lender from the bigger pockets website was able to get me a better rate and better terms for my next property, so I went with her loan. Since then, however, it's being bounced between servicers multiple times per month. This would not be a big issue, except the fact that I need to spend like 4 hours figuring out how to set up autopay with each new servicer each time — their websites don't work properly, their support is useless, and the support takes multiple days to respond to written communication. So far two of them even tried to get me to pay a $5 per payment fee and it took a god damn CFPB complaint to get them to give me, in writing, a procedure to pay without the per payment fee. If refinancing was free, I'd definitely refinance to the local bank at this point despite a slightly higher interest rate. 

My goal is to not need to work a traditional job, and I know how to get income from rentals and other investments, but I do not know how to address health insurance. For my whole life I have had employer-provided health insurance, first my parents' and then my own. Obviously, I can't continue using that. I have looked at the ACA/Obamacare marketplace in my state, and it has options but they're *expensive* and not that good. (For context, my employer pays 100% of the cost for a very nice insurance plan with $0 copay on many things and small copays on other things, and has good out of network coverage. Compare this to some as expensive as $1,000 per month and even those expensive options having large copays, limited networks, and they'll even refuse to cover some non-generic prescription drugs! What if I need that drug?). Some options like Kaiser Permanante that seem possibly good at not available in my area. I have heard about concierge doctors, but that seems risky due to a GP gating access to specialists, relying on that one person (and I'm in a small city so there being more than one is unlikely), it doesn't address catastrophically expensive conditions or accidents. I'd prefer to have something with a predictable locked-in monthly fee that just pays 100% of the cost of any health care that I need from any provider, but as far as I know this doesn't exist. What I have now is decently close to that, but I don't see any way to buy this on the private market. Are there any groups of people like us to get such things like employers do?

Asking price $50k. Cost of rehab is a few months and around $10k I think — I'm waiting for contractors to look at the property to verify this for the things that I don't already have a good handle on the cost for. After repair value is $100k-$170k (based on comps in the neighborhood, the range is large since the layout is a bit weird where the primary bathroom is in a bedroom). Safe rent after rehab is $900 per month, maybe higher if I get lucky and/or rehab it to a very nice condition.

I recently became aware of a very cheap property (roughly half of after repair value) and upon looking at it in person I found out why it was so cheap: there is severe cigarette damage throughout the 1st floor (basement less so, but not entirely without damage); there is visible dripping tar on every wall and the smell is awful. I am considering buying the property in cash then hiring Servpro to fix the cigarette damage. After that, I'd paint and put a new kitchen in (likely do these myself, which I have done before). I have arranged for Servpro to take a look at the property in person to give me a quote for this job. Based on what my real estate agent thinks that this quote will be, roughly, and the after repair value, it looks like I could buy this property in cash, spend a month or two fixing the damage, and then put a mortgage for roughly 1.6x what I paid for it and thus have a cash flowing property at a few hundred dollars per month and a little more money in my bank account ready for a down payment on the next deal. There's currently a tenant in the house (who I presume caused the smoke damage), but the seller promises that this tenant will be gone before closing. I would refuse to close if this turned out to not be the case. This house is in a neighborhood that will not significantly appreciate according to my real estate agent.

When I think about this, I don't see many downsides, so it seems a little too good to be true. So, I'd like to discuss it — am I missing some downsides here? Does this sound like a good deal?