All Forum Posts by: Debra Grumbach

another thought - what is the cash flow? The partner will be "buying" a piece of the cash flow as well as a 25% share in the equity. If he invests $175K, what would be his annual cash flow from this? Perhaps use a multiplier on that. If annual cash flow is $70K, buying in at 25% gives him $17,500 of that. That gives him an instant ROI of 10%. If he buys in at $200K his ROI is 8.75%/yr.

 @Omar
FHA only requires 3.5% but if the 5% makes a difference on the bottom line then do it. Be sure to tell lenders that you want an "owner occupied" loan. And if that who told you 25% and 6 months with that info, dump 'em.

I would personally never rent at a place that had fake grass. Every place I have ever rented unless it was a multi/apartment, the landlord has required that WE maintain the yard. (except 1 but they were fanatics) SFRs - make the tenant maintain it. Multi's - do it yourself, hire someone or hardscape it.

yes. you can require that they cover damage to the building not just their own stuff. this way if they are at fault for damage, their insurance pays the claim. This is 100% common where I am at. 

If you are VA eligible there is only a 2 yr wait after your BK is completed. So if you went into a payment plan (sounds like you didn't) you would need to complete that and have the BK "discharged." FHA is 3 years post BK? It may be 4. Call a mortgage broker. Give him all the details and ask about an FHA loan. I think it's 3. See this link http://www.afterforeclosure.com/

Each bank can decide to make you wait longer. So sometimes the "local" bank is not the one you want to go with.

@Chan K.
I know a top notch mortgage broker in your area if you would like a referral. I did many personal mortgages through him and referred many friends and clients as well. Message me if you want his info. He's a straight shooter. 

 No but they often have a Visa and you should be getting positive ID on all tenants prior to renting. Is she leaving the country or just leaving your apartment?

I would say $175K? If you sold today for the $1M and paid off the debt of $300K you would be left with $700K. So 25% of that would be $175K. I don't know if that makes sense. Maybe you need to get a "premium" for it as you have spent the time and effort to create the portfolio? 

If the "deal" can't sustain an extra couple of hundred in repairs, it wasn't a deal to start with.

figure out a way to buy with other people's money 100%.