All Forum Posts by: Matt T.

I'm very small time compared to other posters on this thread. With that said, if all of my properties went vacant at the same time and I lost my job, I have cash to live comfortably about two years. Right now I have 8 units and mortgages on 3 of them. I'm in the process of pulling out 60% of the equity in all of them at a low fixed rate to buy more properties. I'm working on two flips and plan to 1031 exchange into more rentals. I'm 34 with no dependents and have a fairly high tolerance for risk. Now seems like a pretty good time to lock in some cheap long term debt (within reason).

Sure, but unfortunately they only lend within 60 miles of their main branch in Bellevue, Nebraska. It's SAC Federal Credit Union. I'm not in any way affiliated with them, just trying to indicate there is money out there. Try calling smaller banks and credit unions in your area to see if there is something similar. I talked to about 10 banks before I found these guys.

Hello Chris, I do most of my investing in Council Bluffs but venture over to Omaha if the deal is right. Welcome aboard, its good to see more locals on here.

Those numbers sound about right. I've found one local credit union that is giving 5.0% fixed for 30 years on NOO. They loan 75% of appraised value with no points. Shop around a little but it's tough out there right now.

Good Morning James,

I too was in law enforcement before heading over seas to train others. If I were dead set on that geographical location, I'd probably take the LE job while working myself into real estate investing. One of the benefits (or drawbacks) is that you will likely be initially stuck on the evening or overnight shift as a new guy on the department. That will leave your days free to learn the market, network and focus on the are in which you will specialize. And showing the W2 income will definitely help when it comes time to get a loan. Good luck!

That really depends on your location. To cover just the dwelling (no contents), I'd typically pay about $350 a year for a similar policy. I'm in Iowa; it could be very different if you are somewhere on the gulf.

It really is going to depend on your plan for the property. What is your exit strategy? I plan to buy and hold most of my properties so I pay the fees and get 30 year conventional financing when possible. Shop around some smaller local banks and see what they can offer. If you only plan to own it a couple years a HELOC may make more sense for you.

I've been researching Vegas condos for about two years now. Although some places are down 70% or more in value, it seems there is still some room to drop. Be sure to find out about the status of the HOA before closing. Complexes have a ton of foreclosures and you can bet if they aren't paying the mortgage, they aren't paying the HOA. There really doesn't seem to be any limit to what the HOA can charge monthly as well as requiring a "special assessment".

With all that negativity I have to say I'll still probably be picking a condo up next spring. I'm looking primarily at the south strip area.

James, you are correct in the statement that most banks will only count 75% of the rent as income. Be careful though setting that as your bar to make it a good deal. You've probably seen threads on BP detailing other expenses (i.e. insurance, taxes, vacancy, maintenance, etc). These, over time, will likely eat up about 50% of your rental income.

Banks I have worked with do not need the 20-25% down you referenced. Since it would be a refinance, they would loan 75% of the value as established by a new appraisal.

Not entirely sure I understand the question, but....I'd say the biggest mistake when selling is not disclosing everything about the property that legally needs to be disclosed. It can, and eventually will, come back to bite you.