All Forum Posts by: Garrick Solberg

It seems like most of the properties that would be profitable as rentals fall in price range below $50,000. I have tried to find a lender that will loan out less than $50k, but with no luck. Does anyone know how to get around this issue? I've missed out on two rental properties already because of this. Thanks!

Anyone familiar with this "program"? People are making a lot of noise about this in the SE market, but I'm not sure I understand the full benefits of the tax break. Is anyone investing in these projects? There's an information seminar next weekend that will be covering the program, but its entry cost is rather steep, so I'm a bit uneasy about going to it without having at least an idea of why this is a good investment (if at all).

I thought it was illegal for an agent to have pocket listings because it is their fiduciary responsibility to get the best price for the seller.

Yeah, it's sort of funny because I just spoke with a Realtor that apparently has been involved in investment properties for 20 years now. When I told him the 2% criteria, he laughed and said that could never happen in this town. He then tried to get me sold on the idea of buying 10 houses in a package deal for 570k that have a monthly rents of $6200. No thanks...

So you're saying that the HUD rent rate varies upon the applicant? Does HUD provide you tenants or do you procure them on your own?

Where do you look up HUD rental rates?

Wow, just found another possibility. Wholesaler had a couple of quads for sale, 100k each with an ARV of 225k and an estimated rehab of 25-30k for each building. The rents in the area for 2 bedrooms are around $650. This seems to be really enticing if the numbers are correct!

So, this is the best deal I have found so far in my town. Granted, I am just beginning, so there will be better deals, but on paper it seems like it could work out. Here are the details:

4/1 SFH

Asking Price: $45,000

Currently rented with a year lease for $825/month, although with no deposit.

Home was remodeled in 2003, but had it's A/C condenser stolen recently when it was vacant. Home would probably rent for 850-900 with CHA.

Owner is offering 50% financing, although his terms are a 10 year mortgage at 9% interest.

I tried to see if he was willing to drop the price, but he seemed pretty firm. I'm sure if I looked real interested and said a price drop or change in terms would sway me, he'd be willing to negotiate down a bit. Any suggestions on negotiating a better deal?

Whether you do it or something else does, the 10% is wages, not investment income. You really need to factor it in if you want to figure out what you're being paid as an investor, not a property manager. Also, even though the taxes are prepaid, you still have to factor it in. An expense paid yesterday, today or tomorrow is still an expense.

But, it seems like you have already purchased this property, so I'm not really sure what you are trying to analyze here. Are you trying to sell it to other investors and are checking to see the interest level?

Look to see if the contract has any contingency clauses. If not, try negotiating with the developer. If that doesn't work, lose the 6k and learn a valuable lesson.