All Forum Posts by: Chris Adams

While everything is going great with my subdivision project, I need to move closer to that project. So my wife and I started looking for something we could buy and rehab for ourselves. Our parameters are, must have 3+ acres with woods on the property, and preferably 1800+ and some rehab needed.

Well we found it ! Unfortunately someone else got an offer in before us. But their offer is based on them being able to get a Renovation loan and close in 45 days. Our offer was Cash - No Contingencies - and close as son as possible. I will gladly disclose price after I get the property.

We are an accepted back up offer and I don't see the first offer getting closed in time.

This should be a fun one.

Time for an update

Well spring is just about here in N W Indiana, and I'm darn well ready for it.

My basement pre sold unit has been going slow to say the least. The snow and very cold weather slowed us down, but the recent warm up has allowed us to start the roof/siding and get the basement floor poured. Here is that building with yesterdays heavy fog. 

I recently sold another unit on lot 6, permits came in 3 days from the town and with this warm weather (40's-60's) we can start the excavating. First we had to clear some trees and have some stumps ground

We also have a 3rd building underway on lot 19. I managed to get the foundation in right before winter hit hard. Now that the framers are off of lot 27 the weather is allowing to progress fast on the new building. This building was a spec/spec unit. I sold one half this week.

So if your keeping count. We took over this development in June of last year. I had zero product up at the point. Yesterday I signed a contract on our model home, with a delayed closing date to give me time to open a new model. This is a total of 7 sales since we took over and its only mid March. My goal was to sell 12 a year, 5 to go ! I need to TenX that goal ( Thanks Grant) 

I want wealth because I watched my parents work everyday of their lives and loose our house when my step dad got laid off from the steel mill. I seen my mom struggle to make sure we had gifts at christmas. I seen my mother in law struggle every day to provide for her children. I remember my grandfather making what was considered a good living when I was young. He used his money to help his family. He made house payments for his son and daughter when they couldn't. He gave them money for groceries when they had none.

When I was young I was poor, but I didn't really know it because of the my grandfathers generosity. 

Later in life I realized all of the thing he had done for us, and how money gave him the ability to do so. Now money gives me the opportunity to help others in my family. While I won't "Give" them money, I can give them opportunities and creates situations for them to better themselves.

Finally. I like nice things and I'm not afraid to work my butt off to give my wife and I everything we want in life. 

Hi Darren

We need to back up a few steps. What is your overall goal for your REI future? It can change so don't be to critical on yourself right now, but you should have a goal. If your goal is to live rent free, then the 30yr amort might make more sense at this point because cost of ownership would be lower.

Now if you want to pay off the property fast, then the 15 yr am makes sense. But with todays interest rates why would you want to do that. Borrow the cheap money for as long a fixed term as you can.

Next lets ignore the fact your want to live in one half. This duplex needs to be analyzed as if you are going to rent it out to 2 separate tenants. You should set you own goals for cash flow such as $X/door as some do, or a DSCR of X as others do, and others will look as a COC return. Once you understand that the property functions as a profitable investment property, then and only then should you look at the property as if your going to occupy once side.

Some people can live rent free in a duplex, others can live at a substantially lower cost but not rent free. There is no correct answer since a duplex in different regions of the world have different cost of ownership.

With your credit scores, and the $10k down payment I am pretty sure you can get financing  for this deal. Feel free to ask a lot of detailed questions here when your ready.

As @Patrick Donovan mentioned you should start playing with the calculators found here on BP.

@Jay Helms I use ann LLC

IM in the same camp. Pro rate the first month based on move in date. Rent is always due on the 1st and late on the 5th. This way its easy for tenants to remember the due date. More importantly it keeps my book work to a minimum once a month.

@Account Closed Im not arguing that point. And I completely feel the same way. But I know what banks say and how they look at things.

Now its highly likely that at some point down the road he might be able to refi out his down payment. But I just can't see OP getting a no money down loan for $600k unless he has substantial holding to pledge, or a phenomenal relationship with the bank.

Even tho I live 1200 miles away Im interested in Austin myself. My first call when I actually do make the move to invest there is going to be to @Jon Klaus . So you have the right guy answering your questions.

The banks won't see it that way. They see an investor that has no money down, and no risk if he walks away.

Are you really talking about $5MM B class properties or did you use $5MM as an example. When you get into multi million $ properties its a different game. There is a considerable amount of speculation done by people in that market who know things others don't about an area. 

Also Foreign money is investing in the US in the price range for other reasons beyond todays CAP rate.

Now if your not really talking about the lower price market, well then I just blame it on some nube that watched HGTV.