All Forum Posts by: Jeff S.

You guys must have magical powers !  I once posted in a new members thread stating there were "several meetups" in the Springs to check out, and my post was deleted!

P.S.  I am in no way suggesting that there are several meetups in the Springs. ;-}

@Bryan Rodriguez, @Tyrell Anderson, @Brendan M. :

How do you guys go about finding 2/3/4-plexes in the Springs? MLS ? Seems like there isn't a whole lot there, and even some iffy deals go really fast.

As a buyer, do you work with an agent to find properties or do the searching yourself ?

Do you guys have any experience/insights with soliciting property owners directly ?

My goal is to buy and owner-occupy a 4-plex with FHA loan in the next 3-6 months. Right now I'm scoping out neighborhoods that a) cash flow and b) are someplace I could stand to live for a year. My idea is to generate a list of owners of candidate properties and mail them. Seems like in the Springs, 4plexes are mostly clumped into little "plex ghettos". Makes them easy to find, but not always the most lovely areas...

Anyway, I've got tons of things I'd like to learn and chat about with a real, live Springian fourplex owner.  Do you guys go to any of the meetups ?

That's a pretty cool idea ! (no pun intended)

A slight twist on it might be a duplex in an area that is desirable enough that your half could be AirBnB'd during the summer.  

Also, do not close any credit accounts.  The average age of your credit accounts is used - older is better.

Definitely check out credit karma. dot com. 

I found that even after a year (about 15 months) the bank did a "appraisal" of my property - without ever setting foot inside - and the value they came up with was exactly equal to the purchase price.  This despite the fact that I bought below market and one rather hot year of appreciation had passed.

Keep in mind: when you open a HELOC on a property you generally have to sign a document stating that you will live in your home for one full year.

An old thread, but a great read.  I think every young American needs to learn the *true* (opportunity) cost of a fancy car and lifestyle.

As to frugality, I find its not about managing what I spend, its about managing what I NEED.  Need is different for different people, and it is verytotally subjective.  But if you don't have what you "need" you are poor.

I went straight from college (mostly debt-free due to scholarships) into grad school.  It was amazing:  THEY paid ME for going to school!!! How many people in the US are that happy to earn $10k/ year?  One thing I learned was that there are many ways to enjoy life without buying stuff.

As for the car thing - it's an eyeopener to travel/live in other countries where owning an impressive car is not even part of the keeping-up-with-the-Jones' game.  A car is just sort of like a step-ladder or a can opener:  you get something that works and don't even think about it being impressive.

I get a _real_ kick out of my car, a BMW 540i.  In 1994 it cost (somebody else) more than a house in the neighborhood I lived in.  Eight years ago I paid less for it than a used Kia at a car lot.  It is ugly as sin (bad paint, missing trim), and I've done some DIY on it, but it drives and handles like a beast!  All the money I didn't spend on wheels went into my retirement plan.  That money (a 403b loan for down payment) helped me buy my house and is still there for upcoming purchases or rainy days.

So frugal doesn't have to mean scrimping or belt-tightening (I'm no good at either) but managing your ideas about what is really important.

Usually people talk about an equity line on their principal residence (HELOC). Banks differ, but they will lend up to a certain LTV. Also note that *they* determine the home value, almost always less than what you think its worth (i.e. recent sale price, not a current appraisal).

If the property is a rental, I think it is still possible, but the bank sees it as a greater risk, so the terms aren't as good: higher rate, lower LTV.

One gotcha people need to pay attention to: if you open a HELOC you generally sign a statement that you will continue to live in that house as your primary residence for 1 year. So opening a HELOC to buy a new property with FHA is problematic.

I'm interested as well. I always wonder if it is better to put reserves cash in a savings account or pay down my HELOC (relying on the credit limit of the HELOC for reserves). The latter seems to entail some risk (bank may lower HELOC limit in a downturn) but offers a better return.

 I'm curious:  why do documents need to be signed at an office? Is there a legal reason or just an image thing? 

One huge problem with Zillow is multi-family properties.  Their algorithm doesn't seem to know what a MFH is.  Leads to crazy results not even useful for a ballpark.  But at least you can check under "Price/Tax History" and sometimes see previous rent listings.  You can even see how long a rental listing was active, a nice gauge of the market.