All Forum Posts by: Jay Hinrichs

@Account Closed 

  If they have no credit and you don't qualify them but then you do qualify them. I think you run up with the Qualified mortgage laws.. those are separate from the 3 exclusion rules.

Its just when your putting other investors into these deals as the sellers there are risks they are not aware of. If you are doing these all yourself as the principal then that is another matter your in the business and you know and accept the risks,

@Jeff Meachen 

  I think the apple Cupertino example is an anomaly... I know others do it in other parts of the country.. But I believe the demographic is far different than just putting folks into rooming situations.  flight crews work because of familiarity to the industry and they are basically very stable folks... you try this with lower demographic and I could see this being a nightmare to not workable. 

@Account Closed 

  how do you handle the Dodd frank and Safe act on owner occ seller finance these days. I know it was a no brainer in years past but with the new rules how are you possibly qualifying people that would want to live in 60k homes in Texas... I see this as glorfied landlord.. and the default rate over time is sky high from my personal experience. I did a few hundred of these over the years and can name on one hand the amount of people that actually perfected their contract.  but maybe times they be changing.

@Karen Margrave 

  we do a lot of Portland skinnies 15 feet wide @Keith Bloemendaal 

  and we are doing the same as Keith in Charleston.. I have an offer in on a lot now that is 15X40 

@J. Martin 

  On my drive up to Hood River yesterday with one of my partners.. ( his wife is from Tokoyo ) he was regaling me on these ultra tiny homes. And the little 10 by 12 lots they buy and go one story down and 4 up.. and they pay a million bucks for the lot...

@Account Closed 

  nothing better than flipping in appreciating markets... makes profit taking pretty simple.

@Dustin Rose 

  very small group of partners.. they each have multiple deals.. my biggest one in the Deep south will have 20 going at anyone time.

@Colleen F. 

  that was the point I was attempting to make... I look at my personal home I could rent it for 5 to 6k a month to some one else. But I choose to live in it.. But if I wanted to rent it ... it would be massively positive cash flow .. and like @Joe Villeneuve  likes to do I have NO cash in this home. But I did build it myself and I refied my construction loan.. Not to mention the tax free equity. These are things to consider.  But I could if I wanted to just rent it out and quit my day job :)

@Jason Krick 

  the answer is it depends...  the OP is 26.. he can do this yearly and build a very nice portfolio over 4 or 5 years all with owner occ rates and terms..

Your risk of something going wrong with the rental is far less when you live in it.. your not going to trash your own unit.. And there is no risk of you not getting rent from yourself. YOur not going to have to evict yourself.. your not going to pay a PM to collect your payment or up charge your routine maintenance.. And not sure in that state but there may be a home owner exemption were the tax's are much less than for rentals. I know in many states owner occ tax's are half of non owner occ. so at least for those years. 

So just rinse repeat until you can't get any more mortgages.. plus I think its better to use your mortgage slot for as many doors as possible not just one door.. you use your 4 mortgage slots and have four doors.. instead of 8 to 16 if you buy plex's...

So your not buying a negative cash flow investment your living in it and actually making positive cash flow as you state unless he lives for free he has to pay to live somewhere.

Now when buying a stand alone investment then that's different.  Also many may not want to live in a Plex.. Like me I would never consider this for myself personally..

@Joe Villeneuve 

  easier said than done... in many markets.... And of course one would just put a little more down to eliminate negative cash flow.

I think of all the homes I owned in the SF Bay area and Portland ORegon over the last 40 years. Now you have to live someplace right.. and maybe one is not in RE business.. But those homes when sold and I received my tax free proceeds.. this number is right at  2.5 million in Cash TAX free...

@Dustin Rose 

  looked at your website the house you have on the front is indiciative of what we are doing.