All Forum Posts by: Jacob Sampson

Are you saying you have found a property that is owned by a bank, meaning it has been foreclosed on? The amount that you have to put down doesn't really matter who the current owner is it matters what type of loan you and the property can qualify for. So if the home is in a condition that meets the standards of an FHA loan then you can buy it with the smaller down payment. If the home needs an amount of rehab that makes it not qualify for FHA then you have to get a regular residential loan which will require ~20% down.

This is my experience.

Your state or county will dictate minimum requirements otherwise it is based on the lease.  It seems like providing a 30 day notice is always the reasonable action.

This just comes down to the numbers.  If you can upgrade for 10k and can get $200 a month more then that is a 24% return on your investment.  That would be a yes.  If your upgrade will cost 50k and rent will increase by $20 a month then that would be a no.

You would need to provide dollar amounts for the upgrade.

You don't pay capital gains on your personal residence up to 250k if single or 500k married.  Something like that. 

How do you calculate cash flow?  Normally in that area you don't get cash flow you get appreciation.

You don't need a license you just need to know your area of investing.  You could certainly ask a realtor to provide some estimate as well.  But when it comes down to it you need to know your area and be aware of the shifts in value, based on local economics.

Remember, property value is not a specific number and any number you come up with or pay someone to come up with is an estimation.  As an example, I am on my 25th property purchase and every single one of those has been appraised by a professional appraiser.  And wouldn't you know it, they all come back valued at exactly what I paid for them, down to the penny.  I am either the absolute best in the world at getting properties for exactly what they are worth or the worst in the world and ever getting a deal.  No matter how hard I negotiate I always end up paying exactly what they are worth.

It has become so irritating to me that I have told my bank that I won't pay for appraisals anymore.  They can get them if they want them but they are going to cover the cost.  Luckily I have enough history and business with them that they have agreed.

Call a local insurance agent and ask for a quote based on the purchase price of the property.

@Erik W. I couldn't agree more on Kiyosakis.  Now there are around 2-3 ideas that I learned from his books that I find valuable and did impact how I think about money, but those could have been spelled out in 2-3 separate paragraphs rather than multiple books that rehash the same thing over and over again.

I want to know that they can afford the rent and that they will take care of the property.

Nothing is different.  The source of someones income doesn't affect how I screen them.