All Forum Posts by: Kyle Penland

If he is in his 80s it's not likely he would consider owner financing for a 30 year term. Also you can WRITE up your own contract off of the Internet. You will need professional assistance to close it.

anyone?

Not a good rental.

Don't! Your tenants will begin to have lots of personal emergencies.

I'm not sure what you are looking for?  Analysis paralysis can be easily overcome by posting your deal in the forums for advice.  When you say starting with nothing that throws me off...You can partner with more experienced investors and that may put you more at ease?

Use caution when dealing with professional management that charges to place tenants as they may not have a particular preference as to what tenant they place with you as they are getting their 500 bucks...Just as a side note, my pm does not charge for tenant placement...They only charge 10% of gross rent.

I have always used Comps in the past...May be hard to get comp on a duplex if there are no others in the area...Present your number and then give them an explanation as to why you came to that conclusion.  Your agent should be the one giving them tell your agent why you want to offer this and they should be able to make that sound nice a pretty...Good Luck to you!

So lets work this out...

758 Mortgage

440 is Tax and Insurance but not necessarily utilities

Then add in 10% Maintenance (you will have this) $198

10 % Vacancy (You will have this too) $198

10% Property Mgt (even if you don't use one figure this in...Its your time!) 198

So I just brought your cash flow down from 752 -592

Gives you 160 bucks a month in cash flow... You will CHEAT yourself if you don't figure these in...Is that worth your initial investment?  NOT worth mine.  Also that is not figuring if your tenants like to really use utilities!  When you have a vacancy, and you will... don't care how long they have been there you are in the RED.  How do you know the tenants are currently even paying their rent?

If I invest 32k into something I expect to make MUCH more than 160 bucks a month...I believe if my math is correct it will take you over 15 YEARS to get your money back??  NO WAY Jose...PM me for more details or call me for that matter...I can give you some insight.  If your HVAC goes Out!  and you need a replacement then your out.

Same thing happened to me...I found a property that like you said was GREAT!  It had knob and tube wiring!  I don't know why it happened but starting bid was 25k and it went to best and final several times...Ended up selling for 42k and arv is around 65k...I don't know how they will make a profit on that home!

You've got solid advice here...I would pass on this!