All Forum Posts by: Christian Lincoln

12,000 a year for taxes 2,400 a year for insurance Owner paid heat and electric & snow plow @ 6000 a year. Bill Gulley Darren Sager Shaun Reilly @brandon turner

12,000 a year for taxes 2,400 a year for insurance Owner paid heat and electric & snow plow @ 6000 a year.

I am looking for some analysis of my first deal. Thank you!!!! 2 structure property. Student housing. 9 total rooms. Rooms 600 a month each. 5,400 a month. Taxes 12,000 Insurance 2.400 Turn key condition. I'm a contractor, I inspected. 290k. And owner financed for 2 years at 8% until I can re-finance. 100k down payment. ill do management myself for now. 1 mile from my home. Thoughts?

I haven't been there in a while, but google local real estate clubs and they are a great place to start.

Talk to local local agents and see if they liked their training. You don't always need a real estate license - but if you love that stuff, it wouldn't hurt.

Try and work for an investor or his management company, developer or a contractor too. That way you get exposure to all the headaches and stuff before you actually get in with your own money.

Good luck Will.

I spent quite a few years in Santa Barbara before heading back to east coast. Also went to school there. Let me know some of your thoughts about the market, strategy. etc.

To Larry Burchett's point though,

One technical question I have is whether or not there is a sort of moratorium with regards to DTI. In other words I've been told he can't consider the income from his new investment property(ies) for 2 years – in fact his DTI would be to high because of the new mortgage(s) – to get another property. How do you get around this? (or does this only apply to new investors). It seems to me after one year with cash positive income on your returns, the bank would recalculate the DTI using the new income and not just the debt, no?

Excel and Outlook do seem like the best solutions for the first few years. It would be fun to have something more visual and user friendly though.

Anybody try this btw:

http://quicken.intuit.com/personal-finance-software/rental-property-management.jsp

Andreas,

Up until now, I've bought luxury homes with good size down payments. This is not a work-able long term scenario/strategy. To balance a portfolio like this (which is highly speculative - because I believe in great vacation towns long term) I have to now focus on C.O.C. returns as Jon describes. And I'm a contractor, so I manage my own places. This will change too.

admittedly C.O.C. is not always good, but I trade in some of that for a bigger monthly check and long term appreciation, which I do believe in and fewer phone calls.

I think 100 bucks a door is a waste of time. Honestly, how is that worth the headache of owning or even dealing with the management company. To me that's more of Volume number, those who have a hundred properties and have them all managed avg. out. Am I wrong? I get 1,000 a month on one property, four hundred on the other and the one I'm looking at now nets (with 50% rule) 1900 a month. The 400 a month one is the only I rehabbed. And I'm a total newbie.