All Forum Posts by: Tchaka Owen

Additionally, you mention paying capital gains as if that's a bad thing. It's better to pay taxes on money you made than not having made any money. At least, that's what I believe.

@Leviticus R. - I am familiar with the property you're targeting (one of the wholesale lists I get has it). Overall, it appears to be a solid deal....what others have said about only counting one rent is accurate, so keep that in mind. If you want to get in for cheap and house hack, that's a great idea. I suggest moving into the 2/1 and getting the 3/1 ready since that brings in the most. In regards to your analysis, here's the one point that sticks out:

Your numbers for water and electricity would be way too low if you were to pay ($130 and $250 would be realistic). That said, you should NOT be paying. The property allegedly has separate meters for water and electricity, though the owner is only using one. Clarify what's going on. You want tenants to pay their own way. Even if you have to drop rents a sliver, that's fine. Because you cannot control water and electricity usage, and conservation may go out the window if they're not responsible for the bill. If I were you, I'd jump on this quickly.

Portugal is on the most recent list of Top 10 places to retire. Cost of living is one of the lowest in Europe, healthcare is pretty good, weather is moderate and the place is beautiful. The Algarve is fantastic!

That said, if their partner is truly the one at fault, this doesn't make sense. They have the advantage of people in media....put Whalen on blast; sway public opinion and get attorneys on him. While I love their choice of country, this move does leave me believing they're guilty. 

@Nat C. - 2 things:

1. You should have an attorney represent your side, s/he will draw up your docs and review. It's not expensive and well worth it.

2. Feel free to send me the paperwork if you want me to take a peek. I'm a licensed agent and have seen tons of closing statements. Some fees could be legit while some could be junk.

@Oscar Montealegre - congratulations! Cali is the next spot in Colombia to invest. I'd love to get into Medellin where a friend purchased a few years ago (before most gringos knew about it) but I'm afraid that when I'm ready, prices will be high. Perhaps I'll be your neighbor in Cali. :-)

@Mike Lambert - Cartagena is a gorgeous city, but as far as investing goes it's like Costa Rica. Inundated with foreigners. Medellin and Cali will get you better returns. 

Unless you implicitly trust Zillow, the answer is yes.

@Marvin Meng - a few hard money comments:

1. Most serious rehabs cannot be purchased with Conventional financing and Construction loans require a lot of approvals, thus making hard money appealing.

2. Often cash wins over financing, so you either need to be liquid or use a HML.

3. Most good HMLs do not have tons of junk fees, so even though the interest is much higher, your closing costs are often lower (if you pay points at the end). 

4. To answer your question about analysis, my suggestion is that you learn from your last deal but don't overanalyze because each deal is different. The rehab will be different. Do run your numbers for rate of return, etc, etc. and yes you do learn from the past, just don't dwell too long. 

Hope that helps.

It depends. If I had one project, then the LOC. If I am looking to do several simultaneously, I'd leverage the LOC by using HM as well.

@Jacob Walls - congrats on your first deal! The mortgage insurance on FHA does not go away (unlike with Conventional loans), so no it stays with you like luggage.

I'm not saying it's a bad target, you can put 50% down if you want. What i'm saying is that you must account for the opportunity cost of the down payment (whatever the percentage). To put more down in order to get positive cash flow is deceptive.