All Forum Posts by: Ramon Flores

@Christopher Aguilera To answer your question, it largely depends on how long you are planning on staying on the property. If you are selling within a year then it doesn't make sense to refinance. I would look up refinance calculators online and punch in all the numbers, they show you at what year you break even and how much you will save. Best of luck!

@Jm McNabb To answer your question, unless you know the property and the location it may not be a "safe" investment. Remember that if you get a seller financed property, you are responsible for maintenance, taxes, liens, tenants, violations, HOA, etc. If you go on craigslist you will find lots of "seller financed" properties, however it doesn't necessarily mean that you will make a profit. Best of luck!

@Charlesa F. First of all it is great that you are taking initiative and you are looking for deals, congrats! The second thing I recommend is that you find a real estate agent that works with investors and someone that can help you navigate through your first deal. They can pre-qualify you and may even give you properties not on the MLS yet.

I have not seen the property or know of it but I would be cautious if I where you. Sometimes when something is too good to be true, it probably is. The fact that the numbers are so great and the owner offers to carry tells me you should do EXTRA due diligence. Hope everything goes well!

@Dorothy Williams Have you thought about getting a fourplex or a duplex using an FHA loan? They require 3.5% down and tyou can get a multifamily for you to live in. This will be a great way to start. Best of luck!

@Luke Henry Look at it like this. Let's say you get a property that cash flows for $200 with your 30k. Sounds great right? 

However when if you pay off the car, you will cashflow $600 plus a month. It depends on your situation, how much money you make, etc. Perhaps you have equity in your car and instead of paying the balance in full you can sell it for a car that is less than 10k. 

If you pay cash, you will not have a car payment plus have 20k available for your first property. Just thought I'd offer a different viewpoint. Best of luck!

@Williams Jones First of all, you're making a VERY smart move and I wish I would've done this when I was younger. To answer your questions.

- Yes you want a lease, or at least a document that stays the monthly amount they are paying for the room. You want to have deposits as well. I have had roommates leave in the middle of the month and not come back. It will be helpful to have something in writing in case you have to kick them out.

- I would do a background check. Or at least call the last few places they have rented from.

- Monthly rent info can be found on craigslist. Compare your place to the other options available. 

Another advice on having roommates, make sure you set ground rules and let them know how things will be ahead of time. If you don't want large animals then make sure you let them know. If you don't want people smoking inside the house then let them know as well. Best!

I have always been afraid of section 8, but after hearing out other investors and after all that is happening with the virus... I am very much open to section 8. Thanks for the info guys!

@Matt Davidson I agree with everyone and leave it empty. BTW I am not sure if you live close to a hospital or a big metro area, but I heard short term rental demands have gone up since nurses need a place to stay. You may rent it out short term and at least make some money. Just a thought.

@Marco Morkous This is normal for your first rental. Hopefully you did a home inspection and checked the HVAC and/or plumbing. Otherwise, you shouldn't worry too much.

You will always need cash reserves on standby and if you don't have those reserves then I would open up lines of credit at a bank and only use it in the case of an emergency. Personally I NEVER touch my cashflow and it has saved me numerous times when the tenant has moved out or when someone left their lease early. 

@Charlesa F. Is this property under contract? Have you done a home inspection? What is the location? How are you financing this? 10k only to fix everything?

If you can provide more information then we can help.