All Forum Posts by: Michael Kistner

@Jacob Scott Hecker

   Find an agent and get preapproved. If you're looking everyday I'm sure something will pop up. Also check for small multi family places. 2-4 units. If they already have renters the lenders may count up to 70% of the rental income towards your monthly income.

   Good luck!!

 - Mike

@Alan Hernandez

 Is this your primary house or a rental property? Not a lot of detail. I wrote a blog about my strategy with paying off properties. 

  I’m staggering my loans and focusing on monthly cash and that way I’m not going back and forth with the idea of paying off properties early or not. Some will be paid down earlier than others and I’ll save and invest with the cash flow I’m generating. 

- Mike

@Jeff Mills 

  I inherited a similar situation. Tenant had been there for 4 years in an outdated unit also section 8. 

   I spoke with them about the inconsistencies in when they pay rent and they said with their tight budget it’s easy to get behind and have it snowball. They asked if I pushed out the late due date to the 8th that it would help. I agreed to do that and they haven’t been late in two years. 

   I’m not saying pushing the due date to the 8th is the answer but speaking with them and figuring out their situation you may be able to find a solution. It is nice getting majority of the rent guaranteed every month. 

- Mike

@Matt Millard

 I agree in most cases I take what the FED says with a grain of salt. But they also raised the interest rate, plan to one more time this year and three more times next year. You wouldn’t do that in a bad economy. 

  The coming crash most “experts” are predicting is because of the debt coming due in 2020. It may trigger a market correction, how big of one we don’t know. Which is why I always prepare as if it is coming.

@Tony H.

   Yes I'd take that as a red flag as well. I've talked to other investors in similar situations and worked it out with the sellers to have an inspection done before putting an offer in. Why they'd agree to that without an offer beats me but they have.

    But it's an option. Good luck!

- Mike

@Brenton Johnson

  Do you have an agent? They should be able to pull up the most recent mf sales and help you out. Zillow, Realtor.com, and redfin usually have estimates on the properties. I wouldnt take them as fact but they're usually in the same ball park and can get you going.

   Hope this helps!

- Mike

@Mark Costa

   It really depends on your personal goals and how aggressive you want to be. If you're looking to get rental properties I'd keep it and I'd probably only put 5-10% down on the next property and use the remaining cash to buy more. Again that's my personal opinion.

   I also prefer rentometer to rent zestimates, they're not usually too far off but I've found rentometer a little more accurate.

   And would you manage it or get a PM. If you'd go with a PM I'd start asking for references.

   There's pros and cons either way, good luck!

- Mike

@Whitney Breedlove

   Yeah that's a little much... Definitely shop around. Depending on the size of the leaks I'd throw on some O'Henry's roof sealant on there until you find a more reasonable rate.

    Good luck!

- Mike

@Barry Inge

   Every hard money lender varies. Even the one I use will vary his rates depending on the deal.

   I've done a couple that were near fully financed at a 12% interest rate and just lined up lenders before hand that would refinance them without a seasoning period. I'd recommend finding those lenders as well, and that they lend on appraised value not purchase price before committing to a hard money deal.

   Hope this helps!

- Mike

@Rashaad Harper

   Make sure you get an inspection done, but 1970 isn't that old for a rental. Check on the foundation, roof, plumbing, and electrical. Everything else is generally cosmetic.

  Foundation -  Don't be alarmed to see a few small cracks in the foundation. Anything large should set off the alarms.

   Roof - Find out the last time it was replaced, a decent inspector should notice anything alarming.

   Plumbing - Have the inspector run the water in the sinks and showers while they're checking on the roof or walking through the house, roughly 30 minutes, then go check under the house (assuming there's a crawl space) and if there's any leaks you should see it then.

  Electrical - I doubt it's up to current code, but if it's knob and tube and you have to rerun any electrical it could get expensive.

 Just some basics, hope that helps and good luck!

- Mike