All Forum Posts by: Account Closed

@Thomas S.  Clearly Thomas, you are not familiar with different ways of structuring a divorce settlment, and your comment comes off as very patronizing. 

It is not unusual for an individual to get a lump sum settlement in lieu of regular income, particularly from high net worth spouses.  I know of a couple people whose divorces worked out that way, and trust me, they would have zero problem with paying their rent. @Jeorgia B. - If she checks out otherwise including your gut feeling, she and her daughter will likely be fine tenants.    

@Patrick Daniel What is the typical % markup (or is there one) for a reasonable wholesale deal?  A wholesaler has one available and it doesn't come close to the 70% rule for flipping, then I looked on Zillow, and he had just bought it a couple weeks ago and marked it up from 765k to 825k, a difference of 60k, which seems like a lot, although now that I calculate the %, is just under 8%.  

@Roy N., @Joseph DiNardi-Mack, @Ryan Jopson - I'm interested in student rentals myself.  What is the time line for lining up tenants?  It seems that if you didn't have your rooms filled by say Sept 1, it might be hard to fill them after that point once the quarter/semester has started?  

Also, what are good cities for student housing? I'm interested in the Huntsville, AL market, but it is mostly a SFR market, so I thought I'd create my own 4-plex if you will, by renting a 4 br SFH to students, only to find out via BP that most students don't rent that way there because the campus supplies a high amount of student housing compared to many universities.

@Chris Meunier  Another option for more passive income is note investing.  I just listened to @Dave Van Horn's podcast and got info from @Jay Hinrichs for a note investing program.  It seems the returns are about 9-10%.  

I've been following this thread with interest because I'm in an unusual situation of having cash to invest due to divorce proceedings, but finding it tough to get a fixed loan because I'm in the home my kids grew up in, which is expensive, and Fannie/Freddy lending looks 3 years out.  Based on my current financial snapshot, my income will reduce due to reduced alimony, making my debt ratio unfavorable.  I'm in process of ramping up my design business, but that's irrelevant for getting a loan today.  (and no, I'm not going to downgrade the family home until my twins graduate high school in two years.) 

I've been told by lenders that income trumps cash on hand, so I'm crunching numbers to see if I can "cash purchase" my way into bridging the income gap between my mortgage and required income via the automatic cash flow it would produce.   I'm weighing the pros and cons of a cash purchase vrs other strategies that don't require lending such as note investing or syndications.  

@Anton Ivanov Again - great information and thanks for sharing.  I would love to have your list of PM questions if possible.  Thanks.  

@Mike S.  Are you saying you don't target students, you just have SFRs that students sometimes inquire about renting?  How is it not like a typical college town?  A lot of dorms so they don't rent houses much?  Thanks

@Alyssa Feldhaus - many BP OOS investors are interested in Huntsville.  It presents as an area of high growth/job inflow in STEM fields (educated workforce) at a relatively low cost (especially compared to CA) where cash flow is achievable.  Further, AL has the second lowest property taxes in the country and is a landlord friendly state.  

@Mike S. Thanks for your input. I've been set on small multis in Huntsville, but they seem few and far between. (Even fewer in Madison.) As a possible alternative, I thought of buying a 4 br SFH and renting it out to students per bedroom, near UAH or elsewhere in town. Do you have any opinion/experience with that?

Thank you @Matt Horwitz - very informative!

Thanks @Steve Vaughan - looks like its a money market account:  (are we allowed to post links?)

https://personal.vanguard.com/us/help/FAQVAAConten...

https://www.bogleheads.org/forum/viewtopic.php?t=2...

https://www.fool.com/investing/2016/09/07/vanguard...