All Forum Posts by: Joshua D.

Thank you so much Dan! @Dan Mahoney

@Dan Mahoney Thank you so much! Would it hurt our long term re-sale value if we appealed the appraisal to make it lower? Also, thank you for analyzing that for us. Rental rates are pretty solid in that area. 

@Jeremy Pakalka Thanks so much. I was thinking the same. Believe it or not, our numbers are usually higher than this. I feel much more confident now, we will go ahead and pull that trigger!! Thanks Jeremy!

So we have a 3/2.5 bath house with 3 floors (it's a huge house.) The basement is large and partially-finished, it even has it's own kitchen down there. The home was foreclosed upon and was owned by a bank. We finally got ahold of the bank and got 2 tours, then put in an offer. The house has gas heat, central a/c, and is in a great neighborhood in the most desirable school district. It's tax assessed value is $67,000. It sold in 2004 for $38,000 and again for $99,000 in 2007.  I'm not sure how below market value a tax assessment is. An independent appraisal was done for the bank in the as-is condition, and came back at $50,000.

We put in an offer of $35,200 and it was accepted.  After the closing costs, we will have about $36,000 into it. The house needs mostly cosmetic work, and we might have $12,000 into the repairs, bringing our grand total to about $48,000. 

The house should rent for $1,200-$1,300/month.

Analyze this deal. Would you go for it?  

Currently rehabbing a 3 bedroom 1 bath right now and thinking of turning attic into 4th bedroom? thoughts for rental?

We have both, and tend to prefer SFH, so far. To be honest, we have had less headaches with our SFH's, then our duplex. But more than that, I tend to see more of an exit strategy with SFH, since you can hold and rent or sell for profit to a primary homeowner. With a multifamily, it might be a bit harder to sell. Also, it depends on the deal. If it's a deal and you can cash flow, I'd take either one, most likely. With multi-family, make sure the utilities are separately metered. It really does make a difference.

how old were you when you started investing in real estate? 25, wish we'd done it a few years earlier!

What is your annual cash flow on your properties? After this next deal we are doing, we will cash flow around 5k/month right now. Our goal is 10-20k/month. 

What could you have changed what you know now? Start as young as possible as long as you have a general idea of what you're doing.  We let fear of the unknown hold us back more than we should have allowed it to. 

Why invest in rental properties? Passive income and an always-viable backup plan to make sure you have money coming in

Did you have a great mentor? Several, and they have all been extremely important, but the best mentor, ultimately, is yourself.  You have to continually be a student and learn as much as you can on your own. 

@waynebrooks thank you so much! 

@Brent Coombs Thank you so much for lending that wisdom Brent, I appreciate it! Can you tell me the difference between a special warranty deed and a regular warranty deed?

Know your market. Be patient. Don't compromise. Listen the great advice in this forum already.