All Forum Posts by: Kyle Penland

Some properties will net you more, some less, it's what and how you buy that determines that.

Why not convert it? It would have to be amazing for me to demo the entire thing.

This is a great thread and one I am interested in. Let's discuss sometime.

Kudos to the wholesaler for paying for trash out. That was the right thing to do imo. Sucks you have lost a week though. I learned from this! Thanks for sharing!

See if you can find a local property management company that has strong references and go talk with them. They will steer you correctly if they are "good". They will be realtors and ask lots of questions. Ask if they have anything for sale and bring the numbers back to the forum.

I wasn't going to share but I will. When I started a buy and hold side, I had a realtor tell me as long as rent covered the mortgage I would be ok. I almost threw up. There are bills that will come out of the woodwork for the most random things and with a marginal return, you will negative cash flow likely until it's paid off. Here is a great example for you. I bought two sfh for 25k and get 725 a month returns. That's what I mean when I say wait. You don't have to buy today, but when it makes sense to buy and make true passive cash. This is a business that if you make the wrong purchase it can be detrimental to any credit you are hoping to build.

An easy way to do that is to google start building credit. Make get a few 500 dollar credits cards or whatever they tell you to do. I would highly encourage you to buy deals that make solid money versus buying deal that make marginal returns. Have you considered investing out of state? Partnering with someone out of state? Those would all be things to consider.

I don't think you will see your lawn mower again. Hope the security deposit covers it.

I make twice that cash flow on a sfh with 1/6 that price tag. Be careful, private money is great, but make sure you use that wisely so you will have it for years to come. 267 on a 6 unit is not a good deal at all! 267 on a sfh would be ok. Also work on your credit. That will be your biggest hurdle by far.

No private lender is going to "gift letter" you the money you borrow for a FHA loan unless its maybe family. And to take out a line of credit on the property you are going to have to buy at a major discount. I agree with the others, save for cash reserves. If you have a private lender, then possibly have them loan you the entire purchase amount. Just a thought. Your best route is to purchase if you are able to FHA using a 3.5% down and "house hack" until you can buy another at 3.5% down. Also, I would be careful at starting with a 4plex. That is my personal preference. IF you are cash strapped, and all the sudden go from no tenants to having 3 sets of tenants and don't check them out properly and none of them pay, that could be a disaster! Just a worst case scenario option! Good luck with whatever you do!