All Forum Posts by: Mike Dorneman

@Zach Rego I find that Zillow is often outdated, incorrect and under values properties often times. I much prefer the “recently sold” filter on realtor.com Much lore accurate and its automated. “Owners” are able to go in and change the numbers on properties in Zillow if they register as owners. Think of Zillow as the “Wikipedia” of real estate. Take it with a grain of salt...

@Joseph ODonovan I’m with you. Constantly freezes and if you need to go back into your text to edit something, the caps lock then remains on until you exit the post...

@Edgardo Matos technically yes, however it will likely prove extremely difficult for you to find a bank willing to use a small pIece of land as collateral.

@William Dubinsky Perosnaly I prefer to continue allocating for capital expenditures throughout the entire time I hold a property. I do this because an issue like a blown heating unit, major roof leak or broken pipe can easily run you a few thousand in some cases. A note conservative route would be to take your cash flow (profit) and pump that into your next deal. There’s no point in scaling up if you have to sacrifice your process to the extent you create significant risks for yourself. Have you thought about BRRRing the current property and leveraging it for the next??

@Shawn Underwood No, currently all standard tenants.

@James Masotti they are a small local bank, they o let go out about 30 miles from their branch unfortunately.

@Joshua Buck That could work. You can also consider private or hard money to pay for the purchase / Reno. You would then seek traditional financing after your Reno to get out of the private or hard money. Good luck!

@Matthew Perry Very common Matt. About a year ago I got great deal... Guy had a house paid off from the mortgage and taxes, however he ignored a code violation fine he got a few years back. Well that fine came along with accrued interest and an additional $5 per day. I bought the house for 19k (which was the fine owed to the city). I put about 4K into the rehab. It appraised at 50k and it rents out for 845/month to a very nice elderly woman and her sister. 😁

@Joshua Buck sorry, forgot to mention the down payment. You’d still need to come up with most likely 50k beforehand (separate from what the owner may lend you), to satisfy the banks initial down payment requirement on a non primary residence.

@Joshua Buck it’s not impossible but it’ll be a challenge to find a bank willing to underwrite without having a solid history banking you. At very least, the bank would take first position, but then you need to convince the owner to take a very weak second position. I hate to sound discouraging, but as the owner, I would never do that. Bottom line, if you default, that bank will recoup damages first, and if anything remains the previous owner gets that. Major risk for the owner and little upside.