All Forum Posts by: Lorin K.
Lorin K. has started 32 posts and replied 132 times.
The principle is called leverage. Do NOT leverage to high, or when the next economy recession hits and more vacancies occur in your city, you could end up paying more for the mortgage vs the rent+expenses.
A famous investor couple in Tacoma had 500 homes in the 1990s. They refinanced one home, to use as a down payment on another home. This cycle was repeated over and over and over and they homes were extremely levered. Gangs from California moved into hill top Tacoma + recession and it turned there investment strategy upside down and lost half the properties.
Post: IS the credit check on a FHA/Va rehab loan as strict as a bank?
- Tacoma, WA
- Posts 141
- Votes 29
My credit has remained dormant in the US for 16 years. Went to get a credit check and got a reply "not enough information". Back then, i had some unpaid debts "Post 911 unemployment" and left the country. If I were to return, these would be wiped off my record? Anyway, I am a us veteran how hard would it be for me to obtain a federal loan to buy a fixer property and a credit check is not as critical to rehab a property vs the banking system? Would the federal government do a check on my current credit? I am moving back to reality, where homes are 250k-350k for your average blue collar home vs 850-1.2 million for Surrey Blue color homes. Almost all of Surrey BC Canada 85-150k homes have been razed and monster east indians homes with illegal suites were put in there place. So I will see what my new life in Tacoma brings.
Post: Do any of you use IP cameras to remotely handle some PM tasks?
- Tacoma, WA
- Posts 141
- Votes 29
I have thought of the very same idea. PTZ cameras with zoom would help a great deal. I was thinking "Would it be cool to have a mobile robot with Camera and screen on it...that is can mill around the house to inspect the work done? Well there is such robots but often used for other purposes.
Post: Are sheriff sale similar to foreclosur auctions? House 50% equity
- Tacoma, WA
- Posts 141
- Votes 29
Ron S, good point! Thanks for the info.
Post: Are sheriff sale similar to foreclosur auctions? House 50% equity
- Tacoma, WA
- Posts 141
- Votes 29
My first experience with a sheriff sale was not real property but personal property. I only knew about it from buying some seminar books and so went to my first one. What was up for auction was a wierd assortment of things. Brand new 700 dollar wedding dresses, Prom Dresses, a utility truck and a merlin phone system. Dresses went for 17 dollars each. I was like WHAT? wow. The Airforce guys at the dorm would laugh if they saw me walking into my dorm room with a bunch of wedding dresses :)
Okay fast forward I discovered Our county has several properties up for auction. I notices several are encumbered with very high 1st or 2nd loans. One property that I really do have some interest in has a low balance of 105k. Zillow gave a estimate of 212, It is a little in the country in farm areas..about 5-7 miles away from I-5. Its actually a nice area. The nearest town is not to far away. Anyone here ever bid on country properties? or stay close to town so renting the property would not be to risky? This house is a estate sale as advertised in the Sharif Sale. Property values are doing very well in the area and population is increasing. I LOVE this area as its more wide open then the congested Seattle Corridor.
Post: FIRST COLD CALL!!!!
- Tacoma, WA
- Posts 141
- Votes 29
Keashawn, so you have a property and found investor/buyers good :) What kind of deal are you offering them?
Post: Should I invest? Portland OR Duplex
- Tacoma, WA
- Posts 141
- Votes 29
Originally posted by @Account Closed:
@Mark Davis I like to get as close to the 1% rule as possible (gross monthly income = 1% of sales price + rehab), or at least know that I'll be able to reach 1% when the units turn.
That means for $2600 gross income, purchase price plus rehab would be $260k. You can find that around Portland, but you have to look hard.
Also yes, you pay water/sewer, but you can bill it back to the tenants via RUBS or submetering if you want, as long as it's clear in the rental agreement.
Are you going to live there? (If not, maybe consider investing outside of Portland.) Can you add value (e.g. zoning allows higher density, convert basement to living space, add a bedroom/bathroom, rent out garage separately, etc.)? Is the neighborhood already established or is there room for decent appreciation?
I bought a listed fixer duplex in NE PDX in February for $224k.
Dani,
How do you calculate the Vacancy rate for a region?
Cheap! just simple laminate here in Richmond or Surrey BC cost 25 dollars per square foot. I would not even begin to thing the cost of Granite fabrication.
Post: The Occupants from Hell!
- Tacoma, WA
- Posts 141
- Votes 29
This is one of my biggest worries ...if I buy a property renovate it and rent it out..will the tennants stop paying and squat. I imagine for first time investors this can put a huge strain on there finances with the very possibility it could go into foreclosure because they cannot make payments on there own home and the rental. BTW head over to amazon.com and type in "synthetic skunk oil" its powerful and it forces vagrants out of a home. I was thinking of making a automatic dispenser so if anyone did break into the house, it will dispense the smell all though the house. It should go away in 24 hours though.
Post: Is there a site or sites that show what a area vacancy rate ?
- Tacoma, WA
- Posts 141
- Votes 29
In order to do a accurate as possible estimate of rent for a given home or apartment, Is there a site I can depend on what the going rents are for a house or apartment...and the vacancy rates are for a given area? I will be focusing on the Pacific NW.