All Forum Posts by: Jason Schmidt

I found a website that is local here, and it looks like they are offering property while doing the math for you. This property for instance, they say is worth $130k, but the asking price is $93,900 noting that there is equity of $36,100 already built in. (28.46%). They then proceed to do the numbers below:

deal, or scam??

ok, so this means that at this point in time, using OPM for the full amount is a pipedream? Or would that be where a HELOC from an existing property you own comes from? I guess that would be YOM (your own money) then

hi there wheatie! you are all over the boards :) So, we can do a 2nd loan to take care of the 20% down payment in order to get rid of the mortgage insurance, correct? Or is that just for homes that you plan to live in?

is it your opinion, that rentals are not good to get into? Do you mainly do rehabs/flips etc?

thank you for your time - that is very nice of you to spend that time writing up that much! I would not consider a rental if it were only going to flow $74/mo. It will have to at LEAST flow $200 a month. I would plan on buying at a 20% discount and putting down 20%. I guess that much equity helps :)

That is very interesting about the Denver market. I assume things went up at some point? It seems to me that property consistently goes up during time, and generally speaking, time heals all wounds?

in some instances, it seems as though the mortgage insurance can run quite high. I know that generally, you need to have 20% into the house to forego the mortgage insurance. What if you buy a 100k home with 0 down but at a discount to where the home is say, worth 150k? Does that home still need to have 20% of your cash in it in order to get away from mortage insurance?

ahh - i was thinking that might be the case. thanks!

i emailed a lender about a property and she asked if i was interested in doing an FHA with 3% down, or doing a conventional. which is the best way to go? what are the pitfalls of doing either? Is there a better way?

wheatie, i would be grateful if you could give me a working example. I read your post, and it both confuses me (because my brain hasn't had to work this hard with numbers since highschool!) and doesn't make sense - again, probably because I am just confused :)

i admit i used some bogus numbers. lets try being more round:

buying a 100k property @ 20% discount and putting 20% down:

That means leaves a loan of $64,000.

if I collect $1,000 a month and pay $640 to PITI that leaves $360/mo. Whittle it down even more to $200 a month if you count paying prop management company and dealing with other misc taxes or insurance etc.

Anyway, is it foolish to expect that if you buy right, your cash flow will increase at all from year to year?