All Forum Posts by: Larry K.

He also has a book called "The cash-flow quadrant". Very good book by the way.

It he describes how business owners have many advantages compared to employees.

Our writings here taken together illustrate this point. His entity being a business owner and those with student loans (mostly, but not exclusively) on the road to being employees.

Yes. Details are...
Upstairs rented March 15
Downstairs rented May 1
Applied late May/early June
Closed late July (lots of paperwork! and yes they did an appraisal)
75% LTV, 30 year, 4.5%

Buy and Renovate Summary......
Bought for 127k Sept 22 2011
All-in renovation and holding and leasing and loan closing costs 192k (reno done by years end, leased up in spring)
Appraisal 233k x .75 LTV = 174,750 loan

I have been tracking the foreclosure sales in my target county (Passaic County, NJ) and am seeing of those that are "open" (many are adjourned) most are being sold to the plaintiff for $100. I suppose this means the lender ultimately did not sell the property at the sheriffs sale.

Any insight to what this means?
Meaning, do you think there were bidders and the bank thought the bids were too low so they refused them all and ended up back with the property?
Or were there not any bidders?
Or something else?

I wish I could make it to the courthouse to see for myself but my job prevents it.

I just did this with a 2 family. Seasoning time with tenants in place was not an issue. Although as the time line worked out both units were occupied for about 2 months when I applied for the loan.

Regarding the amount, I think they will limit the loan amount to how much debt the income from the property can comfortably handle. ie it might be based on a certain DCR of say 1.25 with some other limiting safeguards built-in.

IMO you've been given some good answers here

Stepping out it bad. The cigarette butt is much worse.

I should also state that she has been very good in terms of reliability, responsiveness, and I think she works hard regarding the setting up of appointments, dealing with other realtors, attorney, etc. She has also helped out well after the closing and renting out by being willing to meet with appraiser for refi and notarizing some documents for my tenant. So I'd say the service has been very good.

She has not yet contacted me out of the blue to inform of some property she just heard of that she thought would be great for me. Like many of you are saying, I'd like to see more of that.

You should be able to anticipate the loan payments. Figure what the LTV will be (say 75%) and there are loads of calculators online that can give you the numbers. Perhaps it is 75% of purchase or 75% of ARV if you plan to refinance after renovations.

Then do as Jon Holdman said.

How do you handle this?

Seems like it would easier to increase it at annual renewal time.

It is a good idea to install blinds as the landlord. If you don't then your tenants will have sheets and towels up in no time for a long time.

Similarly, you should provide a shower rod and curtain otherwise water everywhere.

Another welcoming gift I provide is a cutting board. Plastic laminate does not handle knife slices well.

Oh yeah, and a plunger too.