All Forum Posts by: Kon Zel

If anyone has insurance agent recommendations, I'm looking for some.  Went through an insurance aggregator site and the quotes are outrageous.  

Again, neither of us are attorneys but I'd be willing to bet that there is no burden of proof here.  A buyer has no duty to show the appraisal.

Let's assume worst case and say that the buyer is lying to you about the appraisal being the reason for sale falling through. Do you still want to try to get that same buyer to closing?  They'll just use another clause to get out of the contract (ie: inspection, financing, etc).  Just move on and look for the next buyer.

Only read through the first 3 pages of this thread, but wow people who don't have a basic grasp of finance trying to explain hocus pocus strategies.  @Eric Jones - Amazing job being patient, I'd have given up after 3 tries.  

I hope that people understand that the only 2 times this strategy will work are:

1. Interest rates between HELOC and 1st are equal and excess cash is being put into mortgage - essentially prepayment.
2. HELOC has lower interest rate, just simple arbitrage.

But if people want to pay me 199.95 so I show them how excel works, I'd be happy to take their money.

I'd argue they don't need to prove anything.  You can't force someone to buy a property from you via lawsuit, not to mention the amount of money you'll ultimately spend on legal fees makes it not worth it.

I'm not an attorney, but I still strongly suggest LLCs. 

Generally sellers will not disclose T12 or rent roll information until you're under contract. So don't be offended if they turn down your request. For multifamily, financial due dilligence starts after contract is signed.

It sounds like you have most of what you need to model your offer price (rents, vacancy, expenses). Call a broker in the area or get access to commercial real estate web sites to get an idea for cap rates in the area. Then submit a LOI based on that.

You'd have to find a portfolio lender to lend that small of an amount.  But as was mentioned, you'd have much more luck with a personal loan - might not get the 10 yr term though.

I 2nd what Nick said above. Be sure to calculate the HOA fees into your model and vet the associate that it allows for non-owner occupancy. I've seen multiple situations where only a portion of the units are allowed to be rented out (ie 30%) and the rest must be owner occupied.

There have been lawsuits over the "zestimate" and investors generally know it's not 100% spot on.  That said, retail buyers do rely on it to a certain extent.  So after you claim the house, you can put upgrades that you've done to it and Zillow will update their price - although it still might not hit your proposed selling price. 

https://www.washingtonpost.com/realestate/zillow-faces-lawsuit-over-zestimate-tool-that-calculates-a-houses-worth/2017/05/09/b22d0318-3410-11e7-b4ee-434b6d506b37_story.html?utm_term=.910a2d0b3639

So this is where the math gets interesting.  Assuming you can qualify for 20% down financing, you can essentially buy 5 properties for the same amount you would have spent on 1.  (Of course assuming they're all the same price and add up to the purchase price of 1.)

This is extremely powerful because although your net income from each will be LOWER (due to paying a mortgage), you'll be more diversified. Your cash on cash return for each individually will be much higher since you've only laid out 20% vs 100%.

I could go into more detail, so let me know you have questions.