All Forum Posts by: Lawson Ott

@Alexis S.

based purely on what you wrote, it smells fishy to me.

considering the comps (if accurate) neither deal sounds good. if after you pay taxes, water, insurance, termite inspection, other inspections, renovate baths, you basically paying full price when the seller walks away with 16k in their pocket.

the only way i would consider this a deal is if i KNEW 100% that quick and or big appreciation was in the future.

however, 600/mo (50% rule) = 300/mo (optimistic) cashflow x 12 months = 3600/year

3600/yr x 10 years, now the house is free, so you can make some profit in year 11+

@Account Closed i don't know for sure, but i would presume, it was a rule of thumb based off of the HUD/section 8 standards that a tenant pays 1/3 of their income.

@Michelle Fox

universally, just tell them you are not renewing their lease (no need to explain why if you don't want to). leases only auto-renew if both parties make no action to the contrary.

but tenant/landlord laws vary by city/county, check your local laws, but my feeling is that it's common contract law governing this and a simple notice to not renew (good juju to give 30+days notice) should be fine.

@Zachary Smith

are you looking to hire a person to be your in-house property manager or are you looking for a PMC (property management company)?

@Account Closed

the 3x rule is combined household income.

rule of thumb, not law.

lower rent should require a higher multiple ($300/mo rent x5 = 1500/mo is barely qualifying while a 2000/mo rent x2 = 4000 income is plenty to spare)

@Kevin Crowell

are you offering to JV with newbs? and in what sense?

i'm in the western ohio/eastern indiana market

i am finding deals, but i'm also busting my butt trying to find capital to get them rolling.

i hate watching them pass by. you know?

so i am out here in idaho today as a truck driver, trying to earn and save enough for a deal.

i know once i have the first few and keep rolling those profits into the next unit and then the next unit, the exponential snowball will be huge.

-if the seller is really motivated, you may be able to convince him to reduce the selling price (keep the 50k as a gentleman's agreement, and hold a private note for the difference, speak to lawyer about the legality of this)

-ask the local community bank for a portfolio loan against your properties with equity

-borrow against the IRA

-maybe you can do FHA with only 3.5% down?

-USDA loans? (KS made me think the property may be rural)

-with a "fair amount of cash" you may offer it as a down payment on a lease-purchase for 5 years (giving you time to get your ducks in a row for conventional financing)

one place to start is https://www.biggerpockets.com/renewsblog/category/...

start at episode 1 and get current.

other: videos on youtube by phil pustejovsky

where i got my start was www.ronsdollardeal.com (be sure to rape the site during the trial period and cancel before the trial is up, maybe use a toss-away prepaid debit card) download all the audio, video, files you can and learn all you can so that when you are reading/listening to people here at BP you have a passing understanding of what they are talking about.

if you can get a seller to agree to sell subject-to your paying down their existing mortgage, then go for it.

if they expect to stay in the house, you have bad news for them. if they can't make their payments, how can they pay you rent?

most often with subject-to, the right, moral, logical thing to do is offer them some moving money. a few grand should work. unless they have a lot of equity, they may expect you to pay them for their equity, and then they may let you take over the remaining mortgage.

no down payment? possible, but unlikely. especially if they are each needing to find alternative housing, you should offer them each a few grand so they can afford new rent/deposit, storage/truck rental.

https://www.biggerpockets.com/forums/79/topics/157661-big-list-of-the-best-real-estate-investing-books