All Forum Posts by: Account Closed

@Marc Cesar 

I think by private money you mean a hard money lender? Or perhaps a friend/family member? In the case of the former, they'll probably make you run your numbers and prove to them that its a good deal. In the case of the latter, they may not be sophisticated enough to ask all the right questions.

Run your numbers and be very sure that if you were the lender, that you would lend money to you.

Is there no way you could get conventional financing on this property? This is less expensive in the long run.

I barely make 1% but I always aim to get as close to that as possible and to buy in the best neighborhoods I can as @Steve Vaughan says.

In your example you make a little over 1% which I would consider a slam dunk (in the market where I invest). That being said, if $68,000 is the asking price, I'd try to get a little under that if I can. Every cent less that you spend up front is cash flow later.

Now... the next step is, what are your expenses on this property? It's a studio so I'm assuming there are co-op or HOA fees involved? Will you be paying a property management company to manage the property for you (between 8-12% of your rental income)? What are property taxes like? What will you factor in for maintenance and vacancies on your apartment? What will you be paying of on the mortgage if you have one? How much of the $800 will you actually have in your pocket at the end of the month.

@Cierra Seay 

Probably in the operating statements but ask to see proof of income side of things too. Are they really getting the income they claim? Are rents paid on time? Are good leases in place? What kind of turnover/vacancies do they have?

@Roy N. 

on the plus side, you now have a vacant unit. Maybe its not empty but it is vacant. Time to get it renovated and get some new, awesome tenants in.

All the best and let us know how it goes!

@Ann Bellamy 

Wish I was in Massachusets, that would be a great presentation.

Maybe you could post it here as a blog afterwards?

@Jerry M. 

Sounds like you should send him the pictures... and then post the pictures here  because they sound cool.

Maybe a reality check of what it looks like will sweeten the deal.

@Kenton C. 

Splitting hairs here I know but I usually factor one month vacancy per year as 8.4% = 30.66 days. When considering vacancy consider the following: In the event of a vacancy, do you just need to cover your expenses (mortgage, insurance, taxes, etc) or do you also want to be able to cover the income (cash flow) you would earn. In other words, do you need to set aside money to cover the total rent or just what you would be out of pocket in the event of a vacancy.

@David Kosiorek 

so annoying. Focus on the success you'll have in 45 days or so. Everything else is water off a ducks back.

@Aaron Nguyen 

Hard money is much more expensive than a regular mortgage. Get a regular mortgage if you qualify.

Also, you lump a bunch of options into your narrative (flipping, renting, wholesaling...). I'd pick one thing that appeals to you the most and do that the best you can. If you're not sure (or at least mostly sure) going in what you're going to do, you're going to run around like a headless chicken. If you want to flip you're going to be looking for a different house than if you are doing buy-and-hold or wholesaling. Figure out first what you're going to do with a house before you go and buy it. Indecision and uncertainty will eat any profits you were hoping to make.

Welcome! Lovely to have you here.