All Forum Posts by: Kyle M.

thanks for the advice!

I actually switched my mind about this property. Reason is that I wanted to invest smaller. My net worth is sub 100k and do not want to throw 20k+ at my first investment (I also read this is a common mistake made by new investors).

Came across a short sale, numbers below:

List Price: $55k

Taxes: ~$350/month

Median Rent: $1400 (rentometer)

HOA fee: 190/month

And took some actionable steps towards purchasing this property.

1. Contacted a real estate agent who has experience with short-sales

2. Got a number to get approved for a loan.

Hope to see the property this upcoming week!

I made some progress, I contacted a local agent who seemed to know what he was talking about. But he didn't sound thrilled about dealing with a short-sale (I'm sure this is very common). But none the less, he had good things to say about the area so that was good. Currently in the process of getting approved for a loan then hope to see the property next week.

So my plan is to buy an hold. This is a short sale property and the numbers are below:

List Price: $55k

Taxes: ~$350/month

Median Rent: $1400 (rentometer)

HOA fee: 190/month

From the pictures it looks like this property is in renting condition (freshly remodeled). It is listed as average + condition. I am a newbie and looking for my first deal, but using the 2% rule and 50% rule this seems like a really good buy.

I am currently in the process of finding an agent who can help me through the process. What are the main things I have to take into consideration opposed to buying from a private seller? I believe I am suffering from paralysis of analysis, any advice on this listing would be helpful!

So I have posted here before, but due to unforeseen circumstances my dive into real estate has been delayed. I am still a complete novice and looking to seal my first deal.

Currently am 25 who lives in an apartment who has never owned a home.

Property Info:

List Price: 110k

Median Rent: $1600 (rentometer)

4 bd/1.5ba

Property rents for 1.50% of list price.

+$275 a month, according to 50% rule. Does not take into consideration the high property taxes in NJ.

Details:

Property is listed as average+. From the pictures it looks like it needs some modernization and some paint in some areas.

Additional Concerns: (about starting up)

So I currently do not know where I am going to be three years down the road. I work for a large company and my bosses expect me to move up within the company quickly. This could lead to relocation etc.

1) So what is the worse case scenario if I were to have to relocate in say three years. What type of monetary loss would I possibly take? (if I have to sell)

2) Also, I feel that if anybody within my company knew I did this they would question my loyalty to the company. They might view me as unhappy with my job or think that it will take away from production. And this would hurt my reputation and may lead to others surpassing me. However, I think there is more income potential through buy&hold then through promotions. I really have no problem with not telling a soul.

Any advice on the property deal and the concerns are much appreciated, thanks!

I am going to pass on this investment and look for a listing that is in a nicer neighborhood. This is a really bad area so I think investing in a nicer area would be a better idea. Thanks for your replies and giving me a better perspective on this deal!

I am evaluating a listing that has good cash flow but is located in a bad area. My current situation is that I have never owned a property before and currently rent an apartment. I am 25 and have a net of around $50k and an income around $50k/year, so enough money behind where the 20% down wouldn't kill me and I would have enough backing to pay for repairs etc. I am NOT looking to move into this property as it is in a bad area.

Duplex
List Price: $80k
Projected Rent: $1500

- Renting for ~1.9% of list price
- Cash Flow of ~$370/month
- Property is in A+ condition

Obviously this is a good deal. But I am looking for advice on how much work this would take considering likely tenants that are not cooperative and myself having virtually no experience. I have full time job working 50+ hours a week. However, I have the confidence in myself that I could make this work. What are your thoughts on renting in bad neighborhoods, especially for the first time investor? Any advice would be appreciated, thanks!

this is the sorta thing that quicken loans said to me. I don't think these companies are too keen on these types of investments. They said I could do FHA 3.5% for duplex, but 25% down for triplex or quadplex. But I'm new at this maybe someone else could explain it better.

My personal process to get pre-approved for an FHA on a quadplex included contacting a RE agent that specializes in working with investors. He hooked me up with a mortgage guy who approved me for a good rate putting 3.5% down on the property. You just got to shop around because different lenders have different policies.

Thanks Brandon!

great question, highly interested in the answer

Hi, I am looking to make my first deal on an owner occupy. Goal is to live there with an FHA and rent it in the future. Second option would be to sell it at a surplus.

Property List: $120,000
3br/1ba (standard for my area)
Median rent for 3br: $1100

Property is in good condition and the area is nice and upcoming. I understand that this is not the best from a "deal" point of view. The best deals are in areas that I do not want to live (sfh and multi). However, I want to take advantage of a FHA loan. This property seems to have a good combination of being a decent deal in an appreciating neighborhood that I want to live. So enough with the bad justifications...

That being said, I'm not a complete softy and I want to negotiate to get the best deal possible. One problem is that this property has oil heating which I have read is like a 3-5k conversion to gas. How do I negotiate this into the offer?

I am really looking for advice on where to start with an offer. What should my initial offer be given that there are no unforeseen problems with the property? When we get close to a deal should I negotiate seller to pay closing costs/gas conversion?

Any advice would be great! My goal is to get this as low as humanly possible and this listing has dropped from 150k to 120k in 10k increments for the last three months. Shows me that this seller is motivated, thank you!