All Forum Posts by: Matt Bishop

@Marcos Carbi, where do you live? Are you experiencing a recession, there? I am not aware of any recession except in the false and misleading "click bait" on the internet. It's like the cover of the National Inquirer magazine at the Grocery store. All lies.

Quote from @Issac San Miguel:

Quote from @Michael Mackney:

@Issac San Miguel Thanks for the reply, who would I get that fix and flip bridge loan from?

Depending on the property either fannie or freddie’s rehab program, a non qm, or hard money lender. They all have different programs. 

Maybe you can do the upgrades in steps as you can afford to pay as you go.  I personally don't like to borrow money and I would run the numbers to see if my cash I was considering spending on upgrades would be better spent paying down the existing mortgage and possibly get better terms with a refinance since I would have more equity.  Personally, I like to retire mortgages ahead of schedule and I put off paying myself the monthly leftover from rents and instead pay as much extra on my smallest mortgage and follow Dave Ramsey's debt snowball method.  I now have 5 paid for SFH and 7 with loans.  I am about 10 years ahead on paying the remaining loans. I suggest you consider this method of getting rich slowly which accelerates quickly once you get that first mortgage paid off and raise all your rents. If the house is lease ready,, ride that horse as far as she'll take you.  I'm not suggesting leasing substandard housing but wouldn't do any upgrades unless they are needed.  I'd save the cosmetic upgrades for preparation to sell and 1031 into a newer house.  

Quote from @Michael Mackney:

@Matt Bishop Thanks for the input. That is a thought that has entered my mind as well, am I actually benefiting from a couple extra hundred dollars per month in cash flow to justify thousands of dollars in renovations. It is at this point a little in the red because of some of the early repairs it needed but nothing crazy. 

Doesn't renovating the property also give me the chance to eventually increase the ARV and refinance to pull more equity out?

@Ashley LaVigne, my Property Manager handles all the permits and registrations and inspections and pays all the associated expenses out of my account. I am not required to be involved in the operation of my properties. Some owners enjoy being more hands-on. I found a great manager who handles everything and I prefer it this way.

That's how I would do it. Or use the Microsoft excel, loan amortization template. It's a great tool for evaluating real estate deals and loan options.

@Matt D., i would use a Texas Instruments BA-35 Business Calculator which has all of these functions built in for you to amortize a loan and determine PV and FV. I think they are at Walmart for under $50.

@Michael Mackney, if the property is cash flowing, ride it out a few years while you save cash to pay for the upgrades or to pay off the mortgage. Will the upgrades increase your rents enough to justify the expense plus interest? Paid for rental homes are sure nice to own.

Ben, I lived through the 1970s and 80s.  People were saying the same thing about real estate back then, "it can never go any higher". "it's not sustainable and going to crash". In my life, I've never seen seen RE go down substantially or for more than a few years.  I believe in the immediate and long term future of Dallas, TX real estate.  When the county has an economic downturn, people and jobs move to Texas.  When the country has prosperity, people move to Texas.  And it just keeps getting better every cycle.  

@Isham Zabala, you could replace the old dishwasher and focus on the future. It sounds like it was near the end of its life anyway. Best Buy will deliver, install and haul away the empty box and old appliances.

@David P., why don't you send her a rejection letter and boldly state your reason is she is pregnant without a husband but is otherwise qualified. Be sure to sign your name legibly and include an address where you can be served. Or,and I suggest this : have a professional property manager take care of everything and just mail you a nice check every month. I can't grasp why so many investors don't just take the easiest path to wealth. In this one instance alone, the owner is putting his assets at risk and possibly missing out on a month's rent while he tries to decide what to do. A year of property management would cost a lot less than the missed rent. With a property manager, he wouldn't even know the applicant exists. Just sit at home and receive a monthly wire transfer from his property manager.