All Forum Posts by: Jane A.

If your units are super beautiful - target faculty and other university staff

If this is your first deal or will be 50% if your portfolio - looks like high risk because of portfolio structure And what was the historical high price of this condo ? We are not at the bottom of market, we could not rely on appreciation too much. Think about your plan B - what is your action plan in the worst scenario ?

Jason Hatfield You may borrow money from somebody's else IRA (not from direct relatives)

Great idea! I would buy this lot cheaper and wait for a better offer from real developers :))) you may be better with build and sell strategy than build rental. For rental properties it is cheaper to buy than to build except beautiful apartment complexes if you have long and cheap money. For short money you may find more reasonable to cut this lot and sell to people who want to build, or to build townhouses with idea to sell or wait for offer from real developers.

Get your full credit report, find out what are your major issues are and start fixing them

With credit unions you will receive better and more predictable result

Marcia Maynard Absolutely agree !

Just build higher reserves to feel more comfortable. Everybody has different feeling about accepting risk. By the way, when you will start building your rental portfolio banks will like to see your cash reserves at your bank accounts and Roth IRA accounts (my preference is Roth as you could take back your initial contributions tax free if you need to). Rental will be adding passive income and responsibility as well :))) try to find what level of leverage is comfortable for you, and what is your possible plan B. The beauty to have a bigger house is - it is appreciating better, you could take financing against it if you need to to buy more rentals and in the worst scenario you could rent out rooms for students :))) or develop bed and breakfast business :))) congrats on your first house !

People with high CC limits and offers for 0% balance transfers for 12-18 months already have credit scores high enough. They are more than average responsible CC users. But they should have some experience and solid vision for their RE business model to be able to use virtually free money for 12-18 month (really 3-4% transfer fee).

It depends on your business model. If property appreciated enough - we could take profit and move to a bigger deal. For example, if we have a general limit of 10 good rate mortgages - we could start with SHF and duplexes, build equity and move to 4 plxes. For example I could already sell my good performing duplexes and buy 4-6 unit buildings instead.