All Forum Posts by: Todd Miller

Michael, our property taxes in Houston are high. On top of that, we just had a property tax hike that has the city in shock and a 1 billion dollar school bond passed in the district the home is in. I calculated $288 a month cash flow before all of this using a 30-year 70K loan at 4.6%

On my current home, escrow costs more per month than my principle and interest. (30 year) I'm putting any extra money I get into my existing mortgage as of now. My plan is to pay it off and rent it out. I think this is a safe route to get into the game. 

Thanks Michael but a 15 year loan at even 1.2K Rent will leave me negative cash flow per month. 

So far the best temporary solution is to walk away from this for now. Too much risk and drama. If it comes to the point he doesn't care what I do with it, then I would be in business.  

Thank everyone for your replies. I am continuing to look at all my options and determine the best route. 

- The home is paid off. 

- My dad expects me to hold on to the property if sold to me at 60K

- The home needs at least 10K in repairs. 

- The current tenant apparently has a habit of paying rent late. 

@Waylon: I think you are right. My only concern is once investors know where the property is they might try to go around me.

No seller finance or lease option. I wont have funds to make repairs, and the home needs repairs. Also, I don't want my dad to retain any rights to the property. He's attached to the tenants, and basically leaves it up to them to make repairs and maintain the home which they are not doing.

Martin G., there is not a premium rent. My dad is renting the property for $1K while area rentals are 200-300 more. (His theory is to keep the rent LOW so that the tenant wont want to move!!!) FMV is around $1500 for a four bedroom house. (This home is a 1982 home @ 1374 sqft)

I estimate $2-300 cashflow with $1200 rent. That's with 6% vacancy factor.

One option was to do a rehab loan then switch to a conventional loan. Another lender was willing to do the loan, adding the repairs into the contract.

Partners, nobody was interested. Perhaps I just haven't found the right person yet.

Martin G., the most significant thing about the property is the location, and that's about it. I didnt think about a duplex situation. I will research that.

I guess the only thing I can do at this point is try to flip the home. Or, refer another investor to the property with the purpose of at least getting a finder fee.

Hello Everyone.

My father has a rental home which neither he nor the tenant are maintaining. I have already tried to purchase the property from him at an agreed $60K (Appraisal is $100K+) to repair and hold as a rental however I don't have 20% down and lenders have told me my debt to income ratio is too high. (The only debt I have is my primary home.) And yes I live paycheck to paycheck with little money in savings.

I've been to one real estate network event where people gave me ideas but nothing worked. It all comes down to me not having the cash. I realize the option of getting a partner however from the people I spoke with, the deal isn't worth their time. The only option I know will work is to rent out my current home and purchase the rental home as my primary residence. That's not going to happen.

And advise or other options? The point is to gain control over the home because my father has formed some sort of bond with the tenant.