All Forum Posts by: Val Csontos

@Jason Powell I think @Jean Bolger's idea would work well for your situation.

The only thing i would add:

 You might want to consider to call around for a realtor who will take his/her commission in form of monthly payment. (When I first started out I called about 25 agent in my area to ask if they would do this, the first 24 of them said no, BUT one said yes so we applied his "buyers agent commission" toward my closing cost (about 2.5-3% of the purchase price) and i payed him 60 monthly payment of about $80 out of the cash flow of the property! 

With this  move your set amount of money will allow you to buy more properties from the start. 

Good Luck to you!

Ps The creative buyer's agent I had found, i had established a working relationship with him and ended up purchasing many more properties with his help, so he was getting a good amount of  money each month, even during snow season, when the other agents were starving.

@Account Closed I think what @Wendell De Guzman was saying that differed maintenance could help you to acquire a property that otherwise could be out of your league. (you don't have enough cash to purchase it at time of listing) But If YOU are CAREFUL and make sure you have great cash flow from day one than you could save up for the maintenance items that are coming at you soon.

@Wendell De Guzman I like your creative way of doing deals! only thing i would add that you also find a creative realtor/buyer's agent and you can borrow your his/her commission also and use it towards closing cost on your investment property you about to close on! 

Back in the 90s I called about 25 realtors, 24 said no but one said yes for my asking if he/her  would accept monthly payment in lieu of full commission at settlement.

So i ended up paying this guy about $150/month /property, so after purchasing a couple of more property with him, he would start receiving $1200-$1500/month every month, even during snow storms, when other realtors were starving. And it allowed me go purchase SRs with very little money,  Win-Win

@Jonathan K.  If it is safe, i would just extend the life o your deck by wash, stain. Once it is done, your wife might be pleasantly surprise how much better it will look. 

IMHO, Spend the money where it does count: kitchen. By the way, did you know that if you ever sell your house, you will get (lot) higher percentage of your money back from kitchen remodel than from the deck work. 

Good Luck to you!

I am with @Anne Wallace on this one. Why build in xtra risk? For such a little xtra reward? Just pre pay if you want to or can.

Best of luck @Brandon Hall !

@Bill Gulley  I like your idea of substitute of collateral.

 We had used it successfully with our local bank before so here how the last deal went:

Purchased an SFR from estate sale for $159k

 It had and after fix-up value of $290k . 

It needed about $30k to make it modern and nice.

so our local Bank gave us a loan for $189K on 30yr fixed at 5.7% to pay for purchase and for the repairs.

In lieu of the normal cash down payment of 25% they normally require, 

we gave them a substitute of collateral, in the form of equity in another rental we own with about 60% LTV.

All you need it track record a great subject property and some equity available elsewhere.

@Robert Piller Very well said!

Longevity is the key, not to becom a burnt out RE flipper. I want to be exited about RE investing in 30 years from now to.  And for me the only way to do that is not flipping (I probably would ware me out like a corporate job) but just buy a property or two here and there.(on fantastic terms of course)

   I am in similar situation as you, (except I choose to give up my day job in 2003) . I have been  a "Buy and hold" since 1997.

@Micheal Waldrup Hi from a fellow Vet, living in Navy town (Annapolis)

 Everyone will have a different take on your question.

 What i would do: I would do leave your money where it is now,  and pretend that I does not exist, and start thinking creatively. Having money available, can and will kill creativity to get anything done, especially in RE investing. And there are always willing participant who will try to help you to part your money from you!  

Don't worry time will come when you might really need that money, for a deal opportunity of a lifetime. But that should only be years down the road when you understand the "ins and outs" of RE investing.

When i was in the Air Force as an E-5 i started to buy properties all no money down, borrowing RE agent's commission to apply it towards closing cost etc so i would have no out of pocket cost. Next thing you know i had 5-6 SFRs in solid neighborhoods some of my tenants were O-3s and O-5s. This was back in the late 90s. 

Now i have larger portfolio (I do "buy and hold" ) and even thought i don't have to, i still buy a property, or two with non of my money down. 

So I am sure you will figure out what is the best way to do it for your particular situation! 

Good Luck to you!

It does sound like some of you guys spent way too many hours to get a unit rented. it takes us about 7 hours/ door to rent a place (plus driving, plus managing repairs)

Here is how:

Place very detailed ad in CR and re-post (two ads of same unit) daily and respond to text emails phones (all we do is tell folks about open house) over 2-3wks = 2hrs

2 open houses for about one hour long each over two weeks =2hrs

Process applications, write leases =2hrs

meet with new tenant to receive deposit sign lease and do property check list=1hours

some factors to help saving time: we had found if we have all of our leases expire at the end of April or end of May than we can get 6-10% more rent end most of the time rent the unit BEFORE it is becomes vacant in just two three week of advertizing. 

End of Jul lease could work too but we often are out of town at that time. 

Another great way to save money and hassle is to put in your lease: if there is a clog in any of the drains at the rental unit tenant call the plumping company at his or her expense. Unless clog was caused by tree roots or deterioration of the pipes.  

This is an amazing clause, it will save you $2-300 year per unit, and on super-ball Sunday night when you get a call/text that toilet is not working you just remind them they are free to call anyone :)