All Forum Posts by: Jeff Solberg

This is a great thread!
I'm with you on taking the conservative track. My wife and I decided to buy our first rental last year. We are about to move into a new home and turn our current house into our second rental.

I read a while back you can afford a house that costs 2.5x your gross income. We decided that the conservative thing to do was to only have mortgages out that were less than 2.5x our gross income. That way if something went wrong we were not in a bind and could afford to pay the mortgages without any problems. After we move, it works out that our 3 houses will be around 2x our gross income.

All extra income and profits are/will be going towards paying off the highest interest rental property. Once its paid off we will buy another. Keeping with the same principle of keeping our total mortgages less than 2.5x.

It will take more time but that is alright. Rentals for us are retirement income and eventually for our kids. It will start to snowball after we pay off the first and second.

I think it just comes down to how much risk you are comfortable with taking.

This is the sign of our time, reward bad behavior and do nothing for those that are responsible. Outside subsidies just delay the natural correction. But hey it makes for a good headline and looks as if they are taking actions to " help" people. Bottom line is these people will not have learned a lesson and will repeat in the future. Others learned its ok to take on more than you can handle because someone else will clean up your bad decisions at no cost to them. This mentality has become common place and will be our downfall.

I recommend you keep them closed with lights on inside. Copper thieves are looking for vacant residences as easy targets. My rental got hit this past week.

Thanks Kathy. I saw that and am trying to arrange it so i can watch :)

As for the link just click the BBCode link when replying for examples.

Webinar Thursday September 29th 8pm CT

I need to investigate SDIRAs. I think this a definite possibility for the future. Thanks for your help :)

I love BP!

This is a great idea. I will definitely keep this in mind when purchasing from another person. Currently, I have been looking at REO so it wouldn't there but definitely another option. Thanks!

I currently have money with WellsFargo but the more I read I am thinking I should move to the local bank to build the relationship with them.

I know this an old topic but I think its a win/win for both landlord and resident. People renting usually dont have great credit otherwise they would purchase a home. This allows them to build their credit. Landlords have a small way to hold the resident accountable. I found two websites that do this sort of thing ( I am not connected to either and if its not supposed to be posted I apologize in advance)

https://www.rentreporters.com/index.php
(not sure of the pricing with this one and it looks as though its initiated by the resident)

https://www.aoausa.com/SECURE/mrLdebtreportingservice.asp
This one is through mrlandlord.com. and is a flat fee 12.95

Seems worth it to me.

Yeah I have started investigating hard money but I am not sure it makes sense in this case. I mean I can borrow from 401k at 4.25% right now vs 10%.

I am definitely going to be looking up the self directed 401k though. Thanks :)

I believe its called fraud. Penalties can be harse and it's not worth it...

I guess each area is different but what are the minimum deal specifications that you consider in your deals? Equity? ROI? Cap rate? Cash flow?

Thanks!