All Forum Posts by: Adair Smith

Tim,

I agree with you for the most part; however I would warn some of the newbies to check the vacancy and unemployment rates in their market. If the vacancy is too high (IMO above 10%) I would caution a purchase. I'm a VERY conservative investor (hence I didn't buy anything while the market was going gangbusters); but I can't agree more with your seasons of cash flow analysis!

I agree with Mike's comment. Banking is ALL about relationships. Nothing ticks my banker off more than someone that just wants a loan. They want it all. Deposits and Loans. His comment to people who just want loans is why don't you go to the bank where you are keeping your deposits. Banks are Capital STARVED!!! They need the deposits more than the loans. You have to entice them.

I don't believe I am bogged down in the numbers and EVERY property cashflows a min. 2% most do more. I'm putting together some projections and was curious if any used excess personal cashflow to pay them off faster.

The northeast florida area has been devestated by over building. With the banks in trouble, 20 year amms are the only loans about there. (5 local banks have MOUs or C&Ds within the past month) I have been to EVERY bank in town. They all have offered 20 years amm none have offered more than that. With that said I have adjusted my purchasing requirement to 40% LTV (after repairs) and 2.25% rents. They have been harder to find; but there are some out there.

I'm toying with two different strategies. I'm an anti-debt kind of person so 1/2 of me wants to acquire about 25-50 rentals and then work hard at paying them off. The other 1/2 of me wants to aquire 75-100 rentals and use the 20 year payment amortization schedule.
To the more seasoned investors...what do you do???

Not doing monthly inspections of the property...its amazing how fast people can distroy a place!!!
Also not rehabbing the big things up front. Example- I had a roof with an estimated 2-4 years left. Well the tenant never bothered to tell me it was leaking in a cabinet!!! Instead of just replacing the roof; then I had to replace part of a ceiling and ktichen cabinets!!!

Hello fellow investors. I recently stumbled across this GREAT deal that is owned by Fannie Mae; however they put language in the contract adendum that prohibits me from selling the property for more than $44,400 for 3 months (which doesn't bother me as I am a buy and hold investor) BUT they also said that I can't get a mortgage for more than $44,400 for three months of the date of the deed???? The purchase price is $37k and ARV is $188k. They can't tell me why this clause is in there, just to say that it can't be removed or altered. Anyone else run into this? Why did they put it in there? I'm at a loss. Thanks in advance.

Screen your section 8 tenatants the same as your non section 8 ones. Screen screen screen!!! I personally have 2 section 8 rentals...they have been there for years and never miss a beat. Also, go get a handbook so that you know what will or will not pass inspection in your area.

I'll miss the tax cuts and keeping my money!!! (yes I'm a selfish money whore that works a full time job and runs two businesses on the side)