All Forum Posts by: Kevin Ely

I'm trying to buy this but still even with cash, has anyone closed in 6 days?  There are still COE processes that cannot be done in that time and the bank will not care until they have their money but that cannot be done with a briefcase of bills.

Property has equity.

A San Diego homeowner contacted me today asking for help - his house was going into foreclosure and he wanted to see if I could help.  The only problem is, the recording date was 8/31/2017 and the auction date is 4/9/2018 - less than a week away. The way I see it he only has two options - pay all the back money owed, or file for bankruptcy. He has an attorney as well.

Anyone ever close on a pre-foreclosure in 6 days? 

I like that gold toilet example as it shows just what *could* happen with frivolous spending partners. I think so far what sounds fair is the 51%-51% deal @James C. called out - like how I treat my children when trying to split that last piece of cake.  One kid is allowed to divide the slice - the other chooses between the cut slices. 

An investor  and I want to partner up 50-50 to purchase a fix and flip. I will be on site with the GCs day to day - my investor partner will be the silent type working his day to day job unable to do any of the on-site stuff at the property. The question was brought up of how to resolve conflicts such as when we disagree on, for example, purchasing a $1,000 chandelier, when the other party does not want to spend that amount. What are some ways to ultimately decide who wins with these monetary decisions in a joint venture?  Do like @NetworthRealty does with a deck of cards and highest one wins? 

@Mayer M. - I really wish there were such a thing as a $50k condo in San Diego :) but as @Account Closed & you brought up points I had not though of as well. I like not having to worry about fixing a roof but at the same time, gaining approval for a dryer vent cutout thru the exterior wall would be a pain if the HOA didn't approve it.

Th average SFR distressed in San Diego can be quite high (often more than $500k which also often means higher returns post rehab) but condos / town-homes are not as expensive ($150k-$250k) and as such, are more attractive for someone relatively new to the game AND using a HML versus all cash. What advice can you give in flipping a condo vs a single family residence? Pros and Cons? I see an HOA as a major Con possibly prolonging the process digging into profitability. Anything else to look out for?

if a 9% ROI after monthly expenses is what you get as opposed to 17% before expenses, is that what is considered a good deal in your eyes?

I failed to mention I'm in San Diego relying solely on the property mgmt company to help. There is a good book someone mentioned about long distance renting....

@Tom Ott - the property is in good rent-able / habitable condition with recent carpet, paint etc.

@Eric James - yes I thought the same thing, but not sure where to get 9% CoC besides mutual funds and RE (Vegas, etc)

@Don Petrasek - I have zero rental experience - hence my apprehension to picking up this as my first rental.

@James Wise - I wanted to hear that the 2% rule is just that - a rule and rules sometimes can be broken and STILL be a good investment.

I'm trying to pickup my first rental property in Cleveland and I've read a few Ohio forums including "Grading Cleveland Neighborhoods" - https://goo.gl/NP3hNE and it sounds like an "ok" rental market (at least 9 months ago when the thread was posted). 

But doing the calculations, I'm not sure if using the Cash-On-Cash calculator https://goo.gl/ZsBYZD is the way to measure rentals. Or if using the Rental Calculator https://goo.gl/wuOr95 works for a Single Family Residence rental.

 Should I be more concerned with:

1. The fact that I'm going to get 17.5% ROI strictly on the cash purchase (Rent / Purchase Price)

2. The 9% "Cash on Cash" ROI (using Rental Calc)

3. The fact that it does not meet the 2% rule (only 1.38%)

4. It has a paying renter so I should be happy regardless :) 

Here's the Bigger Pockets report https://www.biggerpockets.com/calculators/shared/9... on this property:

4492 Parkton Dr Warrensville Heights OH 44128.

Price $61,000 - existing renter is currently paying $890 monthly.

Advice graciously accepted...