All Forum Posts by: Zane Cress

You have received an offer from a wholesaler who will flip that contract to someone else willing to pay higher and they will collect a nice piece of cash from the assignment fee. If you aren't in a rush then list it with an agent and let them bring you buyers. Those low ball offers will still be there in a few months if you can't sell on the regular market. 

The cash flow from the rentals will offset the monthly mortgage on your DTI, if I remember correctly 70-75% of the rent can go towards the mortgage payment. The thing that will hurt you is car payments, student loans, credit cards, other forms of debt that do not have income to cancel them out. You shouldn't have an issue because of the property debt. Should be able to get into something for 5-10% down as long as you have the down payment and adequate monthly reserves.

Fast and easy money is a thing of the past for most investors. Back to the long game, where real wealth is built.

I have a buyer looking for a place with a basement to finish, he might be interested depending on the numbers. 

Would you rather have cash flow or save a lump sum of cash for another purchase while breaking even on this deal and hoping for appreciation down the road. What are your plans after this deal, does your cash position post deal align with this goal? Think 3 steps ahead.

Depending on who you have car insurance and/or primary home insurance with they likely have a rental insurance option as well. I cover everything I own through my USAA account and get discounts across the board. Whoever you have for insurance now should be able to walk you through this or direct you somewhere else.

Their brokerage may not allow dual agency, that would be the first question. Assume your wife would know if she is an agent as well. Your wife could still represent the buying side and forfeit her commission. If the listing expires you could also try to contact the seller directly and offer the seller financing plan. The current agent may not understand this technique or be comfortable/capable of presenting it properly. The BP podcast just had a great interview drop with Pace Morby that is all about Sub2 deals, give it a listen.

If you are a small landlord with a couple properties (2-4) this is up to your personal choice pretty much everywhere I think. You can take whoever you want and decide who lives in your properties based on a gut feeling and whether or not you like one better than the other. You don't have to give reasons other than you went with another applicant. These people are not taking you to court they will simply move on and find another place. If you charged them to run credit scores and apply you might want to return that money to them. 

Having to look off market for anything with a reasonable price. Usually you get absentee owners who haven't raised rents in years. Makes DSCR difficult and local lending wants more cash flow at these prices. Seller financing works if you can get them to understand it, but most want a lump sum and to be done once they decide to sell. Hoping the Fed will be done soon and the dollar doesn't get trounced by the BRICS nations.

I feel like the cost of creating a second bathroom with all the things mentioned won't pay off on a house this size. Better to make one nice bathroom that is a decent size. Only reason I would want it to be a 2/2 is if I was throwing a wall up and a creating a small duplex to maximize midterm or short term cashflow.