All Forum Posts by: Michael R.

Would the 70% Rule (ARV * 70% - Repair costs) not apply even on larger properties?

@Shayne - before you look out of state consider looking for other areas in California. Investing out of state can come with some additional expenses. Also consider what your strategy is - SFH, Multi-Family etc as each market offers different options. Where we invest out of state we have support systems (family, friends, contractors etc) which helps us a great deal.

I hope that helps.

I would consider also where you know markets or where you have a support system.  I invest where I have family and or a base of contractors that I can call. Also consider the infrastructure.  For example, if you want a steady stream of tenants you could look for areas surrounding hospitals in Northern PA. 

If you are applying for a loan you will see hard inquiries as that is how lenders verify credit. 

You can expect to see one hard inquiry for a loan application (one per credit agency that is).  If this is pulling your credit down, have you been applying for credit several (more than 4 times) within the last 12 months?

@John Hyatt this is a great post.  I think that our Why statement should drive us but I don't think that our why statement is a one time thing.  Sure there may be some foundation that doesn't change.  i.e. "To provide clean affordable housing to people".  But the other factors are more like a living document.  You mention part of your why is to spend time with your future kids.  Well, you wouldn't walk across the skyscrapers for future kids would you?  So to me it seems like you are trying harder to create a why than perhaps you need to.  It doesn't have to be such a static large benefit to society and everyone else kind of why.  One of my why's is - I want to travel 2 to 4 months out of the year.  That has nothing to do with anyone but me.  But I find that when I travel and learn about myself and get perspective on values and culture that it changes who I am and my why and what I value. 

So maybe make some lists -- why's for you, for your wife, your community, your future kids and all that good stuff and make your why statement a living document.  Update it as often as you feel the need to.  If it doesn't drive you - re-evaluate.

@Travis H. made some really great points -- he mentioned his why seems selfish.  But I challenge that in that if what you are doing makes you happier then it is a benefit for all that you know and interact with.  

I hope that helps.

Are you applying for a loan?  

@Mark,

I have a learning property (as I like to call them) also. I go back and forth on selling also, but this was before I intended to be an investor and at worst someone else is paying my mortgage.....today. Meaning I needed to analyze, add value and raise rents.

If values are increasing and rents increase as well, this could keep up with the costs somewhat. From a pure investor stand point sell. From a long term, see if you can make it work. 

I hope that helps.

@Scott anything specifically in 14472 or Monroe County in NY.

@Charlie are utilities ran to or near the lots?

@Jerry

do you lend in Las Vegas NV and Maryland?  Assuming Rochester as you are based there?