All Forum Posts by: Shaun R.

Nice job. Lots of people never get that first deal done. As someone who is working on making that first deal happen I like to see others that make it happen.

Here is an example of one I'm looking at. Tell me if I'm missing anything. All into the house at $130k. With a down payment of 20% the PITI is about $700. The expenses I used are highlighted in yellow. I don't think I'd have a problem getting $1250 per month in rent on this particular house.

So I don't think I'm getting much equity at the time or purchase, but the rent is near 1% of purchase price and the COC return is 15%.

Doesn't seem like a terrible buy to me.

@Linda S. and I'm looking for properties that need minimal work to get rented.

I know that monthly rent - PITI doesn't equal profits. So what numbers do you guys use to calculator your total monthly costs? How much for vacancy, maintenance, etc...?

I heard it this morning. I'm new here and didn't know Jay was such a big deal.i enjoyed he podcast. I'm hoping to be the real deal like you one day Jay.

Obviously you guys can't tell me exactly what criteria I should be looking for in a rental property in my area, but as I'm looking for my first investment property I'd love to hear what your criteria are when you're looking for one.

What are your guidelines to determine whether a rental property is a good deal for you?

If you're looking to set up financing for your first property where is the first place you'd go? Where is the second? Etc... I'm going to get a list of local/regional banks in my area online and I'm going to contact some of the online hard money lending sites. Any other ideas?

Jay Hinrichs How much cash will they typically be looking for? I have about $10k for my emergency fund. I also have about $130k in my 401k if they look at that as an asset.

Does anyone use any of the big online hard money lenders that come up when you google hard money lenders? I've got good work history, credit scores, and household income. And I'm ready to start looking for my first investment property.

Originally posted by @Will Pritchett:

I heard a statistic (90 percent of statistics are made up on the spot. Haha) the other day that only 20 percent of homeowners itemize. Interesting if it's true. 
     Your plan sounds solid if trying to build Dave Ramsey style.  Nothing wrong with it. The other perspective would be to take out some equity and buy more rentals. Totally different approaches and lots of personal values at play. I like to listen to Jason Hartman's podcast for some perspectives regarding the value of debt. It is a shift in thinking but he sees debt as a hedge against inflation. I am more on that side of the debate. I used equity from house number one (also my past residence) to buy number two and then things began to speed up.  
     These are questions without right answers, just right answers for you. Good luck in finding your right answer!

 Not quite the Dave Ramsey style... he would say save up first and buy the house with cash, but I'm willing to take one mortgage out at a time and pay it down aggressively.

I like the safety of paying off my residence, even though the ultimate goal is to rent it out.  Then, the next move will be to move on to the next house and use the rent from the first to help pay the new one off and rent it out.  I want to rinse and repeat and pay off the new house faster and faster using the rents from previous houses.

I've considered leveraging, but the thought of having lots of mortgages out there and risking having them go in default for some reason makes me nervous.