All Forum Posts by: Cheryl C.

"Idle" cash has a value to me. It's FU money (pardon the language). It depends on your stage in life and where you are as far as your goals. I don't know if this is exactly your question. I've been out on a limb when I was young and I think that was a necessary risk. Now? No.

I'd rather have the credit cards as a safety net. Dave T. is correct about the upfront fees. Have you talked with any smaller regional banks about your plans? Perhaps you can get financed using a blanket loan encumbering all your properties. I had to do this years ago and as the equity increased, I was able to add more properties. Something else we did (but we were young and had no kids) was buy fixers/great deals with FHA or 95% financing, live there for a year, keep the house as a rental and move to the next one. We sold a few along the way to raise cash or 1031 into more properties. We ended up with about 10 properties by age 30.

At one point I got some unsecured lines because I had proof of a history of success. If you are highly levered or lack solid w-2 income, these ideas may not be an option. For a few years we had to target owner financing because we couldn't get a regular loan. Back then I hadn't even heard of HML.

Thanks for all the great advice. You have some good points. I'm not going to put it on Christmas Eve, but I think January is good. I got caught mid-flip during 9/11 and actually lost some money.

I just checked and there are only 4 homes available in the neighborhood of 200 homes (all 100K over my cost - I expect to spend 20-25). There are a couple of October comps that are really good. How far back will an appraiser go? 3 months?

J. Scott,

It won't be as late as spring. Probably mid Feb to mid March. I'll have to follow the comps and inventory. What I have to lose is a bidding war.

Hi Alison,

The house is in Herndon (I live in N.Reston about 3 miles away). It has great curb appeal and only needs a light rehab. I'm putting in a new kitchen, paint, hardwoods, carpet, light fixtures and other minor stuff. The baths were recently updated, the roof is 4 yrs old as is the hvac. No exterior work whatsoever - it's very well kept.

I'd rather get my contractor in and out.

A few years ago I bought something in Dec. and sold it in January. I think I left money on the table. What are your thoughts about the local market and what the spring will be like?

btw - do you stage your properties?

You could be right but people don't generally look during the holidays. I risk the listing getting stale. I also have a gut feeling that this spring is going to be a very hot market. Inventory is low, rates are great, people are tired of waiting (this is a starter home around here) and we had a yoy median price increase of over 9% - people will think it's time to get on board. I also think I'll get better comps as places sell and close. Of course I will follow the inventory and sales closely but I am thinking "wait". Deals are few and far between around here and I'd like to max this out. Also, I have resources to buy other places that may come along in the meantime. Everyone expects a deal in December and January so those are the buyers out looking.

I am closing on a short in about 2 weeks. I expect the rehab to take about a month, putting me into the holidays. In my market the buyers come out in droves when the first warm weekend arrives. This is usually mid to late February. Should I hold it off the market until then? I am paying cash so I won't have much holding costs.

On the other hand, inventory is very low (2.77 months) especially in the price range and location of this property. It will be in the lower 400's. I risk some calamity with the economy, etc. if I hold off, but I expect to make an extra 15K or 20K (if the appraisal doesn't screw me up) if I wait. What do you all think?

I am much like Mitch. I don't need to live on cash-flow and have plenty of money sitting around for reserves. I make my money going in and then have the tenants pay-off my mortgages. I add extra principal with any excess cash-flow. I find that to be a decent return. We already max out retirement vehicles.

I have 20 rentals and am satisfied to remain at that level. I don't work and find the minimal time spent handling the properties not a real "cost" to me. I do have money tied up in my properties which has an "opportunity cost". I've done so many 1031's that it is difficult to determine what was real money as opposed to profit. I suppose this makes little difference in return from a real standpoint - but it does to me. I started with nothing and it is comforting having some paid-off properties and alot of equity overall. I am anticipating that everything will be paid-off by the time I am 60 (7 yrs).

This is not the best way to go I am sure, but it suits me. I have very little turnover as I screen for long-term tenants. Almost everything I own is within a ten minute drive. Others are within ten minutes of my weekend home. I'm sure I could have a lot more cash coming in if I bought in low income areas or war zones. I have many blue collar properties but none that I wouldn't live in myself.

I'm not any superstar by any means but have built an equity position of just about 8 figures doing something that I enjoy. I am doing some flips again now. I don't want more rentals.

How much does it cost an agent to put a rental in the mls? If I'm giving an agent many thousands of dollars in deals, the least I would expect is a no-charge listing in the mls. I pay the agent who brings the tenant. The standard here is 1/2 a month to the agent that brings the tenant.

As far as my purchases, I do all my own due diligence. I find the deal and e-mail my agent to get the combo. I view it myself unless it's on sentra-lock. My agent doesn't even attend closing or have any follow-up with the title company or my lender. I'm not a pain about anything and don't flake on my contracts. I hardly think it's asking too much to list it for rent. I'd take my business elsewhere if my agent refused this "favor".