All Forum Posts by: John Morgan

@Account Closed

Thank you. I do have a mortgage on it and have had the property and tenant for two years. I just wasn’t sure about the process or if I’m better off just not doing this. 

My tenant wants to buy my house through a lease to own or seller financing deal. Anyone have any suggestions. It would most likely in my opinion be a owner financed deal. But I don’t know where to start researching if this is a good idea and how to go about it.

@Lori Greene

I’ve done both and they both got me deals that I was able to pay for these properties with cash. Otherwise I wouldn’t have been able to acquire the properties.

I did a HELOC on my first investment property with some other creative financing four years ago...paid 130k for it.

I’m in the process of doing a cash out refi on this same property that got appraised at 195k. After getting 75% back and my closing fees, I’m getting 139k back. I’m using this cash to buy a property (for 160k) with a tenant in place that is signing a 3 year contract with me for $1,900/month.

So...my initial HELOC got me in the real estate game originally which I highly recommend. And my cash out refi got me a great deal about 30k under the current market value in a "for sale by owner" transaction that included a tenant already living in there that wants to sign a 3-5 year lease with me at a high rate. All I'm doing is moving money around from bank to person and will net $2,000/month from both properties after my new cash out loan vs only $1,500/month I was getting with only one SFR. Plus I've acquired a new property that might appreciated over the years and someone paying down my 15 year loan at a 4.125% interest rate. So it's a win win situation by just moving money around. I'm only $500/month richer from this cash out, but I plan on doing it again in 6 months. It starts to add up. And it's nice to watch tenants pay off all my 15 year mortgages while I do nothing.

I’m buying a house from someone I know doing a “for sale by owner” deal off market. What’s an approximate guess on our closing costs for this? It will be a cash deal. He doesn’t want to pay a cent of it. I’m getting it for a steal so I’ll have to pay everything above and beyond the sales price. I wish I could just write him a check, change the names on the deed and call it good. But I know there are mandatory things a title company must do for the transaction.

@Steve Mikinic

Exactly! The previous tenant had millions of cockroaches living with her. They were even inside her refrigerator..and would spill out when you opened the fridge door! And mice running all over the place. After completely remodeling this place inside and out, we found fleas! I need to find another way to invest my time and money. Haha!

I loved reading the millionaire next door. It talks about the mindset and delayed gratification of anyone at any income to be extremely wealthy. And these people live simple non flashy lives. They’re willing to save a little here and there instead of spending all their $. Just like in the richest man in Babylon book. And another one I liked was a bigger pockets book which talks about how to get started in real estate with no money. It talked about ways to save up that first 25k. Once you have about 25k you’re ready to invest in real estate and multiply. Can’t remember the name of the book..I gave to some kid thinking about getting into real estate after I read it a couple months ago. Keep asking and learn from others. That’s the key. And don’t listen to all the negative people out there that don’t believe in you. Just go for it and have fun with it!

@Chris Hadley

As soon as you get a sob story from a tenant, be nice to them and say you will start the eviction process. That it takes time for the courts to do anything, and when they pay up you’ll drop the case. If you wait two or three weeks, then you’ve just lost that much more in rent. I learned the hard way on two properties in the last year. You’ll get the same sad stories. I was too nice and got torched. People can’t manage money and won’t be able to pay rent. It’s a fact jack. Don’t let your hard earned money you’ve invested get robbed by people that are irresponsible and make poor decisions in life. Evict them ASAP!

@Greg Gaudet

My debt to income ratio is bad and I just got a loan. I’m refinancing a rental that is paid off. They’re giving me a 4.125% on a 15 year loan for 75% of its value with a fast 4 week closing. I have four rental properties with loans I bought less than two years ago and that wasn’t a problem. PM me if you want to call my lender to see if they can help you out. This guy was able to approve me quick and I didn’t have to go through the hassle of adding my wife to the loan..even though her income would have helped my debt to income with them. Getting loans is tedious, but once you get through all the paperwork requirements it’s all worth it. Good luck!

@Jordan Lucas

I love your attitude. You will go far in life thinking like this and doing what you love. I’m a pilot because I love flying and would do it for free. I started investing in real estate four years ago and have acquired 6 SFRs..and making an offer on one more this week hopefully. I would invest in real estate for free too! It’s fun. And very rewarding watching the passive income flow in every month. I geek out on every bigger pocket podcast that comes out. And read the guests’ favorite real estate or business books they suggest. I’m reading the four hour work week and richest man in Babylon now since many have recommended them on the podcast. Loving both of them too. Work smart and enjoy the ride!

So I just rehabbed a SFR I bought six months ago. I was getting only $600/month with an inherited tenant. I had her move out and fixed this place up and just found a family ready to rent it for $1,400/month. However, there are tons of fleas outside the house in the yard. Some hitchhike and find their way into the house. I've had the house bombed and outside yard completely sprayed by a pest control guy. The fleas are still active. I'm having the yard sprayed again. Anyone have any ideas how to get rid of these fleas? My new tenants are waiting until I get the fleas under control.