All Forum Posts by: Tom R.

@Robert Hudson I found it strangely satisfying to use the bathroom for the first time in my new house.

I'm already glad I decided to do this and I haven't even gone to bet yet. I've discovered the previous owner was an idiot. The swamp cooler is controlled by a light switch. The hallway lights are controlled by 2 single pole switches and the dish washer wasn't installed correctly. At least I got it for less than appraisal value

I just closed on my first buy and hold. I plan to sleep in it for the first few days in order to get a feel for the property and hopefully find anything that might give me problems down the road. Does anyone else do this?

I decided to keep trash in my name so I know that they keep it. I don't want any excuses for trash piling up.

Try your local credit unions. I have one near me that will go as low as 25k.

Today I signed my final loan documents and paid my down payment and closing costs at my escrow company. I also did my final walk through and set up a savings and checking account for my first buy and hold. Closing is tomorrow. Sh*t just got real. 

I only decided to start investing in real estate when I stumbled upon a little place for sale. It was half of a duplex fresh remodel for only $35k. Renting for $650 /mo. It promised a C on C return of 45%. I was unable to close the deal because of the low price and the type of property. I was only able to find one lender willing to give me a mortgage for so little. Unfortunately that lender was unwilling to give a loan out for half of a duplex. Had I known more about real estate investing I might have been able to find a lender but I was greener than a tube of paint.

After that I started reading every book I could find on real estate investing. I doubled my saving and checked the real estate websites daily. I only had to look at 3 more houses before I found a house that should provide more than 12% C on C return, my minimum goal that I set when I started. 3 bed 1 bath 1027 sqft for $100k. I originally calculated it at 15.3% but closing costs turned out to be higher than expected. If I can rent it at $980 or more I will get > 12% C on C. My realtor who also owns rentals in the area says I can get $1000. 

My concern is that another investor just listed a house about the same size same number of bedrooms and one extra bath and they are only asking $800 mo and they are requiring 760 credit score. My realtor agrees the investor is crazy. Not only are they charging too much but they have an unreasonable expectation for the credit score. I dont even have a 760 credit score.

My plan is to list it at $950 if the tenant can supply their own fridge, $975 if not and charge them for the trash service on top of that which will be in my name. Other utilities will be their responsibility. I figure its better to make a little less to possibly shorten the vacancy time.

In about a year I should  have enough to put 20% down on my next property and have a cushion for emergency repairs on my units. After the second property the time it takes to save up for the next property starts getting exponentially shorter. The goal is to generate $100k /yr of passive income in 10yrs.

if you didn't sign an offer than no legal offer was made. I wonder if your realtor even had a license.

which adds more value for a home, rental or otherwise?

I've just started noticeing these myself. one of them is right next to my childhood home. It looks like the main house would pay the mortgage and the secondary house would provide the profit. I kind of see it as two for the price of one. There will be more maintenence but if the profit is higher than a single unit why not look into it?

I think unless the lease says the payment has to be received by the first the rent is on time. If its says due on the first or paid on the first then they have paid whether you have received the payment or not.