All Forum Posts by: Brant Richardson

How many beds/baths per unit? Are we talking about desireable, large living spaces or are we talking about little shoe box 1/1's. Are the utilities all seperate so the tenants will pay for them or is that rent including utilities? The numbers you have look good, just need to verify and get all the details.

Short sales are little misleading. They offer a purchase price which is really enticing and draws you in. It doesn't matter what you offer, you can offer 10k above the asking price with no other offers out there... its up to the bank if they want to accept your offer. If the house is worth significantly more than your offer, to the point that it is worth their time to deal with it as an REO, they aren't going to accept.

I'm not sure what the punishment is or how they go about checking on people being owner occupiers but I would wait it out and hope an owner occupier doesn't grab it.

If you get prequalified with a Homepath approved lender the low down payment is very attractive. There are many lenders who do it. If the home is in bad enough shape that it needs a renovation loan, there are much fewer lenders to choose from.

You can look into FHA loans as well. Down payment as low as 3.5%, but you have to be an owner occupier for that program as well.

Some investors buy a new owner occupied home every year and move just to take advantage of these programs.

I buy from them, in the area I invest in it is one of the best places to find deals. They aren't playing games, they want to get the properties off their books. There could be multiple offers if it is a great deal, in which case you may get a notice to make your final and best offer. These properties have been foreclosed on so you don't know what kind of damage there might be until you see it, the whole foundation could be a wreck. The "First look" is a period where only owner occupants can make offers.

I would look at monthly cash flow. Don't refinance out too far, make sure you will still bringing in at least $100/mo positive cash flow. Congrats on the great in investment that is allowing you to do that.

If you think it is going to continue to decline then get out while the getting is good.

I disagree on selling, this would be a buy and hold for me. Once you've done the cash out refi you have none of your own money in it any more and you are cash flowing $406/mo, that's awesome. $572/mo if you place your own tenants, much more awesome. ROI is infinity. Keep it and repeat it. You will still have plenty of equity in it and you can sell later if you see a better place to use the money.

You live in a great market John. It's so good that I invest there even though I live in California. I am a buy and hold type of guy but I have seen some great looking flips, they go quick. Once you've built some capital up flipping you might want to get into rental properties. Building multiple streams of passive income will lead you down the path toward retirement, which sounds like your real goal. Flipping is work and it will give you one chunk of money at a time.

I would have to agree with Kyle Hipp on this unless you are sure you can buy new properties well below market value.

In my opinion you should consider 100/mo/unit as the absolute minimum, after deducting P&I, tax, property insurance, 10% maintenance, 10% vacancy and property management if you use it. I would not finance it out farther than that. Use that money to buy the next 2-3 properties. At that point if you think you have too much equity locked up in the first property you can sell it, but only if you didn't have a problem finding the other 2-3 better investments.