All Forum Posts by: Kenton C.

I just got prequalified today for a 100 k loan for my first investment property which will be a buy and hold single family home. This was through security national mortgage company, and not a typical bank. I have a credit score of 780

The lender didn't give me an exact rate quote but said that they were closing stuff around 5 1/8% and 5 3/4%. I see ads from banks quoting rates around 3.75-4%. Am I missing something? Why is there such a lare difference in the rates?

If I am just starting out renting SFH in multiple markets across the US, and plan on operating as a sole proprietorship, do I really need a CPA?

As a sole proprietorship, are there tax benefits and tax loopholes that a well versed real estate CPA can help me benefit from, rather than if I didnt use a CPA?

When buying and holding SFH in markets all across America, what will I need an attorney for aside from looking at legal documents at closing/buying and selling?

Does the attorney need to be in that local market, and if so, I guess the best ways to find one would be thru realtors, property managers, and direct lenders operating in those markets?

Hi BP,

Question about owning buy and hold single family homes. Is there such a thing as having too much rental property as passive sources of income? The reason I ask this is I am wondering how macroeconomic conditions such as the 08 crisis affected vacancy rates and those holding and renting out single family homes.

If for some reason, I cannot find a tenant for a long period of time 6+ months, what are my exit options? I can pay for the mortgage out of pocket, but what other exit opportunities do I have? 

Thanks!

I know what I should be looking for in a neighborhood, or house, but I'm having trouble actually finding these neighborhoods. How does one go about finding a good buy and hold market. By ear? 

Any advice, and some potential markets within a 4 hour drive of NYC? Thanks!

Thanks for all the great advice! I am currently living in NYC, and working here, so investing here is out of the question, and moving is out of the question. Areas of potential investment would be North Carolina, New Jersey, Pennsylvania

Maybe a better way to finance the deal is to just borrow some money from my parents, and pay them back when I can. 

Hi BP, 

I have been lurking around the forums and blogs for sometime now, and feel I am ready to start my journey into real estate investment. I am in my young 20's, starting a full-time job next week that pays a 70k salary, and have a credit score of nearly 800. I have no prior experience in real estate investing, but have done a lot of research, and am determined to reach the personal real estate goals of having my first rental property by early 2015. I plan on buying and holding single family homes between $75,000 and $100,000 and renting them out. 

I have 10k in the bank right now, and plan to have around 20k by the end of November. I want to get started as soon as possible. Now my question is, what is a ballpark estimate of the real amount of capital I need to have a stable start in buying and renting 75,000-100000$ SFH, if I plan on putting a 20/25% down-payment?

I have a friend with similar goals, that has capital in the bank as well. However, the only thing he offers is capital since he lacks any experience in real estate, contracting, etc. The only reasons I would bring him on are because we both work full time jobs, and our rental property is likely to be at least a few hours away from where we reside. That way we can split weekends and the amount of time we spent managing the property.

I want to get started ASAP, but if I don't have enough $$, should I just wait a few more months, or bring my friend in on the deal? Thanks alot BP. Once I figure this out, I can move onto the next step of my plan.