All Forum Posts by: Chris Chung

Up around 6:30 AM then sleeping by 12:00 AM or so

That is one happy billboard

A similar thing happens in Colorado:
It becomes listed and the asset manager holds all offers for a minimum of 48 hours before making the decision.

I follow the ROI rule which equals

Net cash flow (from rents)
+
Appreciation
+
Principle Reduction

Divided by

Downpayment = rate of return

When using this calculation, I am often surprised to find that even properties that leak money every month may be as good or better than cash cows

So would you be bringing 20% cash down?

The credit requirement depends entirely on the lender. I have seen some lenders not care about credit even at the 70% ARV level. Some are looking for a number in the 600s, but I still find it rare to see hard money lenders expecting a 700+ score.

100% Dependent on your local gov. In Colorado, you must be licensed

Colorado

Here's why:
1. The state hasn't seen the untamed appreciation that other states have and therefore hasn't made a big fall.

2. Homes are affordable (median home price/median income) and as such, the market is competitive.

3. Recovery is already on the ascension! Bidding wars over properties is good evidence

To avoid a re-development situation, you might look for deals where the rehab budget equals no more than 40.00% of the total cost. That figure works well for use over here in Denver. We tend to buy the cheaper house under $120,000 and generally add 15k-50k

A ballpark figure you may find useful