All Forum Posts by: Andrew S.

No way to make that work with those numbers unless you speculate on massive appreciation potential. Maintenance, CapEx, management, etc will more than eat up the $400 you are left with after PITI.

Joe Gore?

 except utilities (where paid by landlord).  Those are extra - so it's usually more like a 60% rule if significant utilities are involved

 Dorrell,

A word of caution:  to me, your numbers do not look like the property is generating $600 per month in profit!  I'm assuming your $1100 mortgage includes taxes and insurance, but there are many other expenses you need to take into account (vacancy, turnover cost, repairs/maintenance, replacement of capital items such as roof, HVAC, appliances, etc, property management.  Based on conventional wisdom and rules of thumb (search: "50% rule" here on BP), I'd be surprised if you had any REAL cashflow at all.  Now, there may be other reasons that make this property worth owning but I'm just cautioning against counting on the "$600/mo profit" when planning on acquiring the next rental property.

As far as financing the next deal, since there is no equity, your current property will only help you finance the next deal if you can show positive income from the property (and you have to show this for at least two years, normally) and add that to your other income sources.

@Robenson Exume 

Are you talking about your real estate broker or a mortgage broker?  As @Jerry Padilla said, the appraisal should be the only fee you should have at risk from the financing point of view.  If it is the real estate agent/broker then due diligence fee (if applicable) and earnest money should be all that's involved at this point - the latter should be held in escrow.

If you have really bad credit, your best bet is private loans or seller financing. You should not consider HML for a buy and hold - it is too expensive and most HMLs will not go beyond a year or two anyhow.

Maybe I'm confused but if he thinks he can sell it for 350K on MLS, why would he sell it to you for 240K?

First and foremost, she should get the heck out of there, regardless of what her lease situation is.  I sure hope she doesn't hang around a dangerous situation just  because she is concerned about the lease.

If he can really swing the place himself, chances are he'll just continue to pay the rent anyway.  @Mark Brogan , I don't see what grounds you would be evicting them on.  We don;t even know if she called the cops and there is an investigation of criminal behavior going on (sadly, these are VERY under reported crimes), but even then it's not obvious to me that you can just evict.

 OK, unhappy, but in the end, what is preferable - filing an incomplete 1099misc, or filing no 1099misc?  I mean that as a serious question, no sarcasm