All Forum Posts by: Marsha Rost

@Brent Coombs

Thanks for your input. Like I explained to Brian above I have not been able to find ANYTHING that would come close to the 1% rule. This property is the closest I have seen. I have been looking for over a year and have made lots of offers that were not accepted.

I don't know if I am being too conservative on my numbers and maybe that's why nothing seems to work. Not even the properties from the wholsalers.

Given the added explanations above in my reply to Brian, what Number do you think I should offer for this deal to make sense?

@Brian Gerlach

Thank you very much for the input. It is very helpful.

I have been trying to apply the 1% rule but I have been looking for a long time and haven't found anything that fits that criteria. I have been looking on the mls and working with a wholsaler at the same time.

Property taxes in Houston are so high that it kills any profit.

This property actually is one of the lowest priced per sf in the area I am looking at. It is in decent condition and has good bones but it's priced similar to properties that need a gut reno or are tear downs. And it's been on the market for quite some time. And I think The only reason it hasn't sold already is that it was a single family that has been converted into a small neighborhood church and now it is being marketed as a church and so I think because of that it has not shown up on many people's search results. I actually came across it by accident.

Anyhow it is now priced at 270k (still lower than the majority of properties that are currently on the market) and I thought I might be able to get it for 240k just because it has been sitting on the market for so long. So what price should I offer for this to make sense?

Also I should note that the only reason I thought it might be appraised for just 300k is because there are no similar duplexes in the area to use as comps. And I know when it comes to refinancing, appraisers become extremely conservative. Otherwise updated single families in the area with similar square footage go fo much higher. Close to 400k range. Do you think I should account for a higher ARV?

Please let me know if you think this is a good deal.

It is a 2100sf single family which I want to convert into a duplex

Est rent for both units $2600

Cash Purchase price $240000

Repair costs $50000

Monthly tax after repair $550

Ins. $150

Vacancy 5%= $130

Capex $200

Property management 10%=$260

Repairs 5%= $130

If I refinance and cash out at 70% (assuming it is appraised for a little over $300000) and 5.2% interest rate monthly mortgage would be $1100

Please let me know your thoughts. Thanks.

I have just recently started my investment journey At first I wanted to start by flipping single family properties but after doing some research I have come to the conclusion that I want to BRRR multi family (2-4) properties. I have some money of my own and I have a friend who I think I can convince to invest with me but before presenting him with the idea I want to have all my facts straight. There are tons of books out there but I would like to know iF there is a book or two that most people would suggest in regards to my specific investment strategy. Also for those of you who have done this I’m curious if you would recommend or caution it to a newbie like me. And what would be your reason. Thanks BP.

@Frank Leone If it is gift money it doesn’t need to be seasoned. In fact it doesn’t even need to be in your account. The person gifting the money can wire the amount directly to the title company and just provide a letter that says it is gift money. I bought my house with gift money and that’s exactly what we did If the money is borrowed however there is no seasoning to it. It will be considered a debt no matter how long it’s been in your account. Of course if you wait 2 statement cycles and not mention anything about your debt on your application there’s a good chance the bank won’t find out about it but again as everyone one else has mentioned it could be interpreted as fraud.

@Ned Carey thanks for the information. I will check those out. 

Thanks for the information. 

@Ned Carey Can I ask what other paid services you are referring to?

I’m a beginner here and have been trying to find a good deal to flip. I’ve seen many properties And made several offers none of which have been accepted. In analyzing my numbers I’ve even tried to settle for a minimum profit just so I can get in the game and gain some experience. I feel like my agent is starting to get frustrated and tiered of showing me so many properties and writing so many offers. She no longer responds to my questions right away like she used to and sometimes ignores them altogether. She is a great agent and knows her stuff. She helped us buy our own house but I think she is not as enthusiastic with us as she used to be. Anyways I’m thinking of getting my own license to not have to keep politely askiNG someone else to make time for me to see a property. I’ve been reading up on the requirements of becoming an agent and that I have to sign up with a broker. My question is, can I access MLS and properties without being assigned to a broker and having to pay their fees? So once I find a property I can just ask another agent to make an offer? Would that even be a smart thing to do or is it totally stupid? Also is it easy to find a broker if I am only wanting to work on my own properties? My dilemma is that I want to have access to mls and properties but I don’t think it would make financial sense to have to pay broker fees if I am only buying 1 or 2 houses per year for now. Should I even consider getting a license? Thanks

I have a rental property that has a negative $150 cash flow and that’s not including repairs that come up occasionally. I bought it in 2015 and the value hasn’t appreciated much since. This was my first investment property and I’m now thinking that maybe it wasn’t a smart investment afterall. It’s a condo which also has foundation issues which the hoa is supposed to take care of but only god knows when that will happen. Should I hold on to it while I have a tenant in there and wait for the hoa to someday fix the foundation problems and then sell or should I get rid of it now knowing that I won’t be able to sell it for a fair price right now given the foundation problems? Is this considered an asset or a liability based on the rich dad poor dad definition? Obviously I’m paying money out of pocket but the rent IS paying down part of the mortgage.

are those really legitimate? I always thought they seem shady and might be scams.