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please use a REALTOR

they can pull you information on this....
beginners fail by using too many online sites
the best is to call your local realtor to find your area comparables.

any realtor will be happy to help you..if you are buying or not.
thanks

sunsmicro

every area is different
and in my experience real estate is all LOCAL
i have find great properties that work..but bad properties only a few block away that don't work.
your knowledge in area is a big plus...

as for lender or buying whole in cash.
i have to say.. do what is right for you. don't listen to others about lenders or banks.
its all with the individual.... if you don't feel comfortable...buy all in cash.
as for me...i like to leverage since its a form of asset protection and great return for your money.

thanks
sunsmicro

every investor has different exit stragegy....

if its long term... you want it to be fixed maybe 30 years or 40 years

if its a quick rehab maybe ARM short term

if its a quick wholesale flip...i use hard money...(easier to get the loan)

however, this is risky if you can not find a buyer
i used this approch only when i am sure to find a buyer

next time you don't want to tie your money all in down payment
leave more for next investment and as little to buy (other peoples money)

as for rent
the best is to post free at craiglist.org
it is free and been using it to find renters for years now!!

good luck to you
thanks

sunsmicro

your knowledge in that local area determines your success
if you are not fully aware don't go into it until you know!
remember...even though its a few blocks away.
some area codes work and some don't (in my expeience)

knowing more always helps!
thanks

sunsmicro

commercial is very difficult...if you know what you are doing
the risk is better since the return is better!
commercial all mostly depends on the income as in my experience
i have made quite some good profit but lost many as well.
however, residential is better since financing is much better.

commerical determines on rental coming in AND track record.
if you don't have some good quality tentants...finding the loan is difficult
thanks

sunsmicro

also what community or area you live
i live in Hawaii... rehabing cost are expensive. if you know how to repair your own house you can make some money.
usually, labor will determine your profit.
in my experience...the more work and so called "clearner" the unit
the faster you will move the property.
However, it takes too much time !!!
i rather make less profit and move to quicker transaction
wholesale is what you should look at.
consider this.....
if you can pocket 20 grand and it took you a year
that is about $1666 a month.
i can find some wholesale for 5 grand a month. much faster and you can all work at home!!!
your skill for wholeslae is if you can effiecently market that property!!!
thanks

sunsmicro

if you have a current place...you can find a lender that will do non-owner financing. it is higher interest rate. the lender feels that if you are living there it is safer for their interest.
If you are going to stay there ... the rates are lower.
however your option 1 sounds good to me
thanks

sunsmicro

you need to test your waters first before you dive in....
this is what i usually do...
ask the current owner you want to have the option to buy the house for 6 months....
find renters in there first....(REMEMBER CASH IS KING!!!)
if you find no renters...there is no point buying the unit even though its better than other in the community.
if you have hard time finding and filling in the unit within 6 months..
don't buy it!!!

if you can...congrads and fall through with your option!!!
happy buying!!!
thanks

sunsmicro

your best bet is this approch... credit problems last sometimes to a year to reach good credit status. By this time you will not know where the interest rate will be. Please go ask the seller for owner finance with resonable interest rate. somewhere in the 7 percent or so.
Financing with a bank or lender is very difficult at this point and house mortgage shopping will hurt your credit more.
thanks
sunsmicro