All Forum Posts by: Adam Demchik

Jordan Sizelove - Did you start the process with realestateexpress? Do you have any opinion on them yet?

Thanks Steve!! Looks I have some reading to do.

I was pretty gung ho about a couple of condo's as the Cash ROI was near 30% but after talking to a few others who own and rent them out, I decided to slow down and do some digging on the association.

I'm new to REI and have been attending the weekly Sheriff sales to get a feel of how they work. There are actually properties in my area that would be worth buying. Other than a title seach to check for liens or a second mortgage is there anything else that should be researched prior to bidding.

Also has anyone tried an online title search company like titlesearch.com?

I'm looking at a few sets of condos in my area as they are very cheap and cash flow very well. A big factor is the HOA. I plan on reviewing their financials for the last few years prior to purchase. In addition not being FHA would be a huge problem for me.

Mehran...I'm new to this as well. I am taking a very conservative approach until I get my feet wet. I would want at least $100 cash flow due to all the unknown factors that may arise.
Good luck.

I would appreciate some opinions on my strategy below to purchase 5 condo units. First the numbers:

Approx. purchase price - $35,000 each
Type of units - 5-10 years old, 2 bed 2 bath
Rental value - approx 750 per month (satisfies the 2% rule)

I don't want to deal with getting a traditional mortgage so my plan was to purchase the first unit with cash and then take out a home equity loan/line for 80% of the value of the condo (28,000) and use this plus $7000 of my own cash to purchase the next one. I would repeat this process for all 5 units. In the end after purchasing all 5 units I would have a total cash outlay of $63k and a yearly gross income of $45k. My return on cash would be about 30% after applying the 50% rule and paying the mortgage payment.

Please let me know your thoughts on the above plan. thanks!

Steven Hamilton II...thanks. I am planning on purchasing 3-4 properties this year all under my LLC and then writing off my expenses (gas, car, travel (if I buy out of town)etc). Does this sound reasonable. I haven't pulled a good accountant onto my team yet so I am just curious.

Thanks

Curtis...I would definitely use leverage at today's rates for a conventional loan. I'm into a commercial loan due to some 10 unit properties I'm looking at and nat happy about it. Use OPM to your advantage.

I haven't jumperd into the business yet, but I was toying around with paying myself the property management fees if I do the property management myself. I am looking at the same scale as you. Do you have any issues managing the property yourself?