All Forum Posts by: Jeffrey Holst

@Dennis Wasilewski  I have been increasingly interested over the last few years because of the highly favorable tax situation.  I believe that it may be the perfect place to move in retirement provided that tax rates stay the same however the economy is troubling which tends to discourage me from jumping.  

The process is tedious.  They often ask for large amounts of redundant documentation.  

I agree regarding Brian for property management. 

 Nice. Keep it up

One new goal by the way is to hit the 500 post club by summer

quick update.  We are still on path to close the 32 unit and I just started podcast 80.  I made my Jan/Feb and march post goals.  I am still working on the two additional purchase goals.  Will keep you posted.  Hope Y'all are out making money. 

You guys are up 

 ( @Bryant Tumbelekis @Omar Khan @Caleb Heimsoth @Stephen R.@Jonathan Hulen @Rupert Grant @Jason Lavender @Chizoh Uzegbu @John Morgan @Lamaine Hargrove @Vina Real@Todd Romero @Larry O'Connor @Aaron Hall @Benjamin Kelly @Nicholas Richard Ray @Ola Dantis @Dean Fryer @Bo Kim ) 

The 50% rule is a guideline its not always correct.  It is possible to find deals where the costs are 40% or 20% but it is also possible to find deals where the costs are 60% or 80%.  Personally as a newer investor i think you need to shoot for stuff that at the minimum cash flows with the 50% rule.  You also need to make sure you know your numbers its easy to think a deal makes sense but forget a cost or two.  Particularity when you are new.  

Best of luck.  It can be a rewarding career

So if I understand correctly you are asking if Heloc money is treated as cash?  The answer is yes as far as the seller and closing company are concerned because you have the ability to write a check for that amount.  However you are correct that you need to consider the cost of that money ie the payment when deciding if purchase makes sense.  There are times when a heloc plus a traditional mortgage makes sense and there are other times when its best not to take any loan the property itself dictates the structure in my opinion

I am not familiar with the area but I think the trick is to look at the likelihood of getting 1K a month or more.  Find out what other properties in the area are renting for and assume your rents will be similar.  Good news is if you are going to live there for a bit the rents may go up between now and when ever you plan to rent it out.  At that point in the future you can see what the rent situation is and then you should have a good idea of costs as well since you have been living there.  

So when you are getting ready to move out you can compare rents and costs and determine if its better to rent or sell