All Forum Posts by: Tim Parker

11/2020

Should appraise for 550-600k. Credit score 770. No seasoning. Loan amount desired 420k.

Conventional 15-year loan. The property was purchased with cash. Complete gut. New plumbing, electrical, roof, insulation, the works all done correctly with quality materials. Already rented pending final inspection. Rental income $3400 per month.

I am financing a duplex. The lender wants top of market rates and will only lend to 60% of appraised value. Is this common?

No!  If you buy right, rentals should still cashflow.  Why sell?

I started 4 years ago at 65. I buy primarily REOs that don't qualify for financing (too many problems). Then you BRRRR and get most or all of your money out. But to do this,you need to see value others can't see, buy at a smokin' price, know what the ARV is, have a good team of people to do what you either can't or don't want to do, and then have the guts to pull the trigger! Don't overpay and don't get emotionally involved. Know that you'll look at 100 to offer on 4 to buy 1.

But here's what you can do:  we paid $183k cash for a 1200 sf house with a 1000 sf garage, did about $17k worth of upgrades (the house was a mess), got a loan back for $195k, rented the house for $1600, and the garage for $600. Net result?  $900/mo cashflow on $5k of our money.

Easy? No. Lots of hunting? Yes.  Lots of work after we found it? Yes. Totally worth it? YES!!!!!!

Go for it.  Don't let anybody stand in your way.  Find the cashflow and set yourself free. Control your own life.

No amount of planning can account for good luck.  I live in Bremerton and would love to meet, even though we are both busy people.  I go to the eastside as infrequently as possible.  You know what it's like.

We all make mistakes.  Learning from them is the biggest benefit.

We are buying a 2005 mobile on a quarter acre.  Where can I find financing?  Our usual broker can't help us.

I have only done 2 and did very well on 1 (good return on effort) and okay on the other (too little profit for the effort.)  I have bid on many others, but was unwilling to pay more than I thought they were worth.  I learned a lot on both.  J Scott's books are invaluable.  You make money when you buy, but don't receive it until you sell.