All Forum Posts by: Yu L.

@Account Closed , maybe I should be more specific, out of those 100 divorce cases with properties......

@Jackson E.

What I meant is if there are 100 probate cases in the court house, they only have 30-40 cases in their website. (that's in my county, I can't say for all counties)

Same thing for divorce and eviction.

I farmed the data in the local court house and I compared my data and those on Rebogateway, that's how I know.

@Jackson E. , you get what you paid for with Rebogateway, they don't have the complete set of data, they just have a subset of everything (at least in my area)

If you want to blanket everyone (e.g. all probate, all divorce), they are not the place to go to. However, if you look at it by the cost per lead, the $30 / month you pay is pretty cheap.

oops.... I looked at the wrong one, I quoted the long term rate.

@Mike Bryant the rate you mentioned 1.95% is still below the AFR, so the imputed interest rules would still kicks in. How do you handle that?

@Mike Bryant so you structured the deal based on the IRS AFR rate? The rate is changing monthly, do you need to adjust the rate every month then?

@Account Closed , no it is not a short sale, what I meant is $450k is the price for a short sale in that neighborhood.

@Duncan Taylor what is your recommendation on the note if I plan to sell before maturity.

Thanks @Account Closed , finally got someone who knows how the local market works.

You are right, it is a property in class C of the market. It is in Milpitas.

Prices in class A and B in the Bay Area has already gone past the peak in 2007, I do expect that would follow by class C, D, E....neighborhood in the Bay Area.

After everyone's feedback, I don't think I would hold on to it for 15 years. Last time during the peak in 2007, it was around $650k in that neighborhood. There is one similar house just went pending last week at $625K after 8 days on the market, I am just being very conservative with my numbers. $450k is the price for short sale.

I am expecting this one would hit $570k within the next 7 years and I will just sell it.

sorry, there was a typo. It should be "after" property tax and insurance.

Here comes the numbers:

rent: $2200

mortgage payment: $1100

property tax: $400

insurance: $100

cash flow: $600

The way I look at it is 9% cash flow for the holding period with a big pay day down the road.

ROI on the big pay day is over 250%

@Wayne Brooks can you elaborate on the IRS tax issue?

I assume the $50k fix up will fix all major issues for the next 10 years.