Personal Intro and advice on property

[Kyle Penland]

Hi everyone!  I am new here and stumbled upon the site and really liked what I saw.  I have began listening to the podcasts as well as reading through the forums to soak up as much knowledge as I can get.  So with that, Thank You all first and foremost for being so engaging with your conversations.

I have done 4 rehabs in the past 3 of the 4 successful.  All 4 I guess could be considered successful since I haven't really lost money!  I'm starting a new phase of my life and moving in the direction of buy and hold.  I don't have the time to flip a property and like the buy and hold strategy that seems if all goes well to provide a nice living for some.

I've come across several properties that are really good in regards to cash flow.  Property 1 is listed at 89,900 with 1600 monthly coming in.  Its a 4 plex and sec 8 and all 4 are rented.  Its listed by a property company that rehabs property fills it up and sells for a profit and then manages your property.  He is also willing to hold a note with 70% down.  my bank will loan me 85% on the property so seems like a no brainer right?  What would be the down sides to this?

Also the other property I have come across is listed for 24,500 with 400 monthly coming in from a long term tenant, and 29,900 with 595 monthly from a long term tenant.  Both seem solid properties...

Which Would you go for?

Also another question I have is my home appraised for 350k, and I owe 270k...Can I use that equity to purchase these?

Thanks everyone and have a great weekend!

Kyle

[Peter MacKercher]

Welcome to Bigger Pockets Kyle. I am in STL please let me know if you need anything.

In the meantime here are 7 tips to help you grow your business using BP:

1. New to BP? http://www.biggerpockets.com/starthere

2. Develop your own business strategy. -- Don’t just be a “jack-of-all-trades"

3. Grow your business by developing your business plan. - Remember there is a difference between goals and a plan. http://www.biggerpockets.com/files

4. Locate and attend several different local REIAs as they’re great opportunities to network and meet wholesalers, lenders, and contractors.

5. Stay away from the “guru” sales-pitch events - they rarely increase your investment knowledge, they merely empty your wallet!

6. Spend some time every day on Bigger Pockets by connecting with “colleagues,” perusing blogs and videos, and engaging with others on the forums: http://www.biggerpockets.com/meet

7. Set yourself up to receive free alerts to be notified of subjects that interest you: http://www.biggerpockets.com/alerts