All Forum Posts by: Rocky V.

If this is a pier and beam home I would consider installing a plastic liner in crawl space.

I would look into a Self-Directed IRA but you would need to abide by all rules. There are local credit unions in my area that will finance rentals with very favorable rates. Check your area.

I too follow D Ramsey and I'm hesitate to tap into the equity of my home. That being said if you are confident in your numbers, "Why Not?". If I had followed his advise on buying rentals cash I would be far behind.

What's the market value of the home? Quote seems on the high side. You can get another quote from[REMOVED] I would not worry about an umbrella policy until more properties are acquired. Keep in mind I am somewhat of a risk taker so others may have differing opinions. Just keep my info handy when you need any work done.

Wow!! How much will all this cost? Does the cost justify the means? I own several properties in the DFW including Arlington. My preference is 2-5% deductible, no personal belonging coverage (tenants should be responsible for covering the own belongings) and no loss of rent coverage, however, I do carry an umbrella policy. What year is the property? You may consider looking into a home warranty plan instead of all these extras. If something major were to happen it is all about having/knowing the right contractor.

Run your numbers and call her back asap. If everything looks good set-up an appointment with her tomorrow, otherwise, someone else will beat you to it.

@Garrett Fulton

Congrats!!! Keep going strong but keep your finances in place and make sure you have an emergency fund in place. I agree with Ned in that you should look for an even more profitable deal at this point. Your goal of 20 properties within 10 years is very attainable. I started purchasing properties in 04 and now have 28 properties. My passive income far exceeds my fixed expenses but retirement is not something I would consider because I love what I do.

Congrats!

Did you secure any type of non-refundable deposit or option fee from buyer?

Insurance is way to high and keep in mind current owner probably has a homestead exemption on taxes so your tax bill will go up.

I would stay away from lease to own in TX:

Lease-purchases, lease-options, and contracts for deed present serious burdens and risks to sellers under Texas Property Code 5.061 et seq. relating to "executory contracts" – i.e., contracts that remain essentially unfinished for a period of longer than 180 days. Sec. 5.061 provides that numerous initial and ongoing requirements must be observed if an executory contract is going to be properly implemented, and the burden (as well as all the risk of violation) is entirely on the seller to meet these. (www.lonestarlandlaw.com)

If it was me I would do the deal as your cash flow is about $200/month but my market in DFW is hot and I'm not sure how yours is and I am an experienced investor. Also, don't over do it on rental rehabs. Unless there are major issues your budget is on the high side.

You may also consider an Option to Purchase and try to find an experienced investor in your area to sell it to.

@Bill Gulley you got me thinking. I have several "sub2" deals in rental portfolio and need to make sure this is covered.

I have used limited POA when mortgage company issues escrow refund checks. Mortgage companies will not issue checks to your name and in this instance all I do is provide limited POA to my bank and there are no issues with deposits.

Power of Attorney