All Forum Posts by: Justin B.

Couldn't have said it better myself :)

Maybe they are pocket listings for now?

ALWAYS ALWAYS ALWAYS trust your gut!

It's normal to be nervous. Just make sure to run the numbers and make sure they come out to exceed your minimum requirements. Also, the best thing I can suggest is don't look at it from a "whether or not you like it" point of view. Make sure it's in rentable condition (or find out what it would take to get it that way and adjust your offer accordingly) and if an SFR make sure it matches with other houses in the area (i.e. don't buy a $200k+ house in an average $100k community).

Also, please be comfortable with where you are. For an SFR, If you don't feel completely comfortable floating this purchase for a year without any renters, you're looking in too high of a range. For MFR, use a conservative vacancy rate and make sure you're ok floating it at that price as well.

And my biggest piece of advice is, if your gut tells you something is wrong or you don't feel comfortable (for whatever reason), listen to it. Your gut feeling is right 9 times out of 10.

Welcome to the site. I have a couple of SFR's in the Memphis area.

she's absolutely right here. How you treat the home definitely plays a big part on taxes, but as far as the loan goes, read the docs. I'm not saying there won't be clauses in it for how you can use it, but double check. I can say if I was the previous owner providing financing, I'd want you to rent it. Rental income means a better chance of you paying your note :)

Great story. Almost nowhere else do you hear of people taking such small amounts of money and turning it into millions over time. Unless you find the next Microsoft or Apple (and wait 30 years) you can't do that with any other medium!

Got some links? Unless the loan paperwork itself says what you can and can't do with the property, you can do whatever you want. As long as you pay the note, you're good.

I'm pretty sure it's for protection out of hours or something like that.

I've heard people say that banks want to see your name on the title. This hasn't been my experience. I haven't had any trouble getting loans in the LLC's name. I *do* have to sign a personal guaranty with the other 2 members, but it has nothing to do with who holds title.