All Forum Posts by: Vonetta Booker

Correct me if I'm wrong, @Daniel Warren --but you may not want to make the EMD out directly to the seller. If things go left, you may not see that money again. Best to have it in the escrow acct. of your title co. or atty's office, so at least you have that measure of protection.

Thanks for the input, guys. By the way, HOA fees for that particular complex are around $226/mo.

I'm also looking at another non-condo townhouse deal in the area--more repairs needed & vacant, but about $20k cheaper, no HOA fees, less taxes & can go for more rent (it's bigger). Since the cheaper one looks like the better deal (I'd keep it for my own buy/hold), I'm wondering if perhaps I can try wholesaling the condo, even if only for a couple k?

Welcome to BP, @Terrell Perrin ! You'll find a world of great info & support here. My boyfriend lives in Elizabeth, and whenever I'm there I see tons of bandit signs all over--I guess REI is really active there, yes?

Just got a call from one of my yellow letters. Guy owns a 1/1 condo in the north ("nice") section of town, has a renter in place who's been there for a few years & pays $1100/mo., says he has no issues w/ the HOA. He paid about $40-$50k for it 20 years ago (now condos in his complex go for about $60-70k). Pays about $3100/yr in taxes (yes, this city's taxes are notoriously sky-high).

He kinda sounded like a tire-kicker; said, "Well I got your letter, figured I'd call you...I'm always looking to sell at the right price but not for $.50 on the dollar." Okay.  I told him I'm also a licensed agent (an option I keep open in case after talking to them, the seller wants market rate above closing quickly/cash)--he said he didn't really want to disturb his tenant w/ a lot of agent showings.  

So, based on the above info, is there any kind of potential deal here? Or is he one of the many non-deal calls that tend to come through?  (My issue is that when I get calls, I'm not sure yet how to potentially & creatively structure them the right way!)  

Based on the comps, I doubt if there's enough of a spread to wholesale or rehab.  Perhaps a seller-financed buy & hold?  Not sure, but feedback's always appreciated!

@Doug McLeod, @Arlen Chou, @Nathan Brooks , @Darren Budahn ---thanks for all your input.  I'm glad that others find this is a good strategy!

So, just so I understand (because I'm still trying to totally grasp the concept):  I'll plunk down all cash at first and then refinance w/ a lender to get a mortgage on the place--so that way, I'll get the money back that I paid initially (or most of it), and afterwards only have to pay the monthly mortgage, correct?  

I've come across a potential rental property that's currently on the market for $40k (rents in the area can go up to $1300/mo), and the seller wants cash only.  (It's a 3/1, needs probably about $15-20k; a new kitchen, bath, paint, refinishing floors.)  Although I have enough saved up to purchase it cash w/ a decent reserve amount left over, ideally I'd much rather leverage instead.  

How might it benefit me (and is it even possible?) to buy the property cash, and then refinance?  I've heard others talking about this strategy--but I'm not exactly sure how it works.  

If someone could break down how refinancing after a cash purchase works--and if it would even be feasible in the above situation, that would be awesome.  Thanks!

@Leon O.--I do keep my eyes open for off-market deals, although I must admit--I don't market for them nearly as much as I should! (Working on that...)  I'm also still trying to hone my negotiation skills when it comes to private sellers --i.e. good conversation, asking the right questions & structuring deals correctly based on their situation. 

@Jay C. --Yes, the calculator is an awesome tool--and I didn't even have to go as far as WalMart, it's right on my phone, lol! ;-)  But even with its simplicity, all this info overload still has me punching in formula after formula on it!

@Justin Cooper, what are your 3 or 4 main criteria based on?

Thanks for your encouraging words, everyone! (For some reason I missed my reply notifications via email, so at first I thought no one responded, lol!)  

@Michael Evans, I really liked your advice about sitting still & letting God direct my course.  @Justin Cooper, I also liked the part about just determining what spread I'd like & what my needs are & go from there.  I'm narrowing it down to a particular area I like, and I'm in the process of deciding if I want to do SF or MF, and looking at properties.  

I guess I just have to find & maintain that balance of doing my due diligence--but not overthinking it to the point I wind up doing nothing!  Thanks, and I'll keep you guys posted. :-) 

I have to admit--I am sooo nervous about buying my first rental property.I spend hours on the MLS, look at properties left & right, analyze until my eyeballs ache—but I still haven't been able to work up the nerve to make an offer.

I’ve read tons of stuff on how to landlord, find good tenants, do due diligence, etc.—BiggerPockets has been like, a godsend.But I still have the fear of getting a tenant from hell, based on the horror stories that I hear about landlording headaches.

Also, even though I've downloaded the BP rental analyzer and have tried to factor in as many numbers as possible per potential deal—I'm not gonna lie, all this stuff about "CAP rate" this and "2% Rule" that makes my head spin, lol!

Wasn’t a particular question—just needed to vent a little about an apparent acute case of analysis paralysis!But if anyone’s been there and is now doing great, I’d sure love to hear about it, lol! ;-)

Personally, I don't think it makes a difference if you're a renter--there's no rule that says you have to own/occupy your home before you start investing.  I mean really, if you own rental properties, you still own, right?  Whatever situation works for you is best, whether you're where you are currently because of work proximity, affordability, etc.--there's no hard/fast rule.  

I'm in a similar situation. After my divorce I decided to rent for a while, since I was in a transitional phase--I didn't want to be tied down to a property if I decided to move.  Sure enough, my daughter & I moved to another city to be closer to her school.  Waay too expensive to buy here, though--so I plan to still rent while buying & holding in a less-expensive (but not too far away) area. 

Either way, you'll have to either pay rent or a mortgage, lol. If the deals are good & you invest right, your cash flow will benefit you regardless.