All Forum Posts by: Richard Warren

Hmm, let’s see….symptoms:

 Shakes
 Chills
 Sweats
 Blurry Vision
 Cramps
 Blah feeling

Yup, the Bigger Pockets site is down!

8)

If your rental income is 1% of the purchase price of the property you will most likely be losing money every month. On rent of $700 you will probably have expenses of $300-$350/month. You may wish to do a search for posts about the 2% rule.

8)

Those hypothetical examples look great, but they are garbage. It’s wonderful that he shows the rent going up each year, does he show expenses going up as well? Can you really assume that rent will increase but taxes, insurance, maintenance, etc will stay the same?

8)

That's what they get for cutting my HELOC! They cut my HELOC by $100k, and cut the rate on savings to about ½% so I switched banks…I guess that lost profit put them over the edge.

8)

I have talked with Erik Santus, the head of Blue Moon and a friend of mine has visited their office in Denver. Their business model is an interesting one in that they take on a lot of the risk involved in rehabbing a property. That doesn't mean that it is a good deal, it may or may not be on a case by case basis. There are some problems with their system.

1) You are expected to hold the properties, not flip them.
2) Their properties generally will have a negative cash flow.
3) You could have difficulty obtaining a mortgage after the rehab is
complete due to current conditions in the lending marketplace.

They seem to be reputable but I have never done a deal with them.

For more on Blue Moon check out the following:
http://forums.biggerpockets.com/viewtopic.php?t=11640&highlight=blue+moon

8)

The Fed announces new rules for mortage lenders:

http://biz.yahoo.com/ap/080714/fed_mortgage_crisis.html

8)

Many renters are irresponsible and others are outright liars. They don’t look at it from your point of view or care that you are sitting around. Many of them may have driven by or through the neighborhood and decided they didn’t like it. Others may have found something else and not had the courtesy to let you know. It is part of the business but 25 does seem excessive.

8)

Here is the latest on a Gov't bailout:

http://news.yahoo.com/s/ap/mortgage_giants_crisis

8)

Walk score was 32 out of 100. Not that we do much walking when its 110+ degrees!

8)

One problem with that the house must have been your primary residence for 2 of the last 5 years. You will also have recapture on any depreciation that you claimed. If the IRS initiates an audit and found that the transfer was done to avoid taxes in a fraudulent manner you are in for a world of trouble.

8)