All Forum Posts by: Abel Rodriguez

@Brian Garlington I am intending on doing a home inspection as well as a home appraisal. I would say the home is in a c-class to d-class neighborhood, any tips on finding out for sure? Ive searched but frankly haven't found anything. That Section 8 estimate was lower than the section 8 website stated, but I am intending on contacting the housing authority to verify what the landlord regulations and what they would be willing to pay for said home in the area. his original asking price was $35k, I've slowly worked him down to this point. upon more investigating it looks like the median home price for the area is around $40k, so I am wary about repairs. 

@James Wise thats the number I was really hoping to rent for or more. I plan on doing more due diligence and research about the community and the rental rates.

thank you all for all the suggestions and help so far!

@Dennis Wasilewski yes payment will be $250. Thank you for that, im looking at the property this week to determine how much if any work will be needed to get it section 8 ready.

@Jonathan Taylor Smith Thank you for the suggestion on the tenant screening posts! It is a fairly low income area. while the area is rough, its actually on the much nicer side of town, not that it really helps, as I mentioned I'm viewing the property this week and plan on doing some more thorough neighborhood recon.

@Ryan Murdock I'm fairly confident utilities aren't required but am getting in touch with the correct people to clarify all section 8 landlord requirements.

@Brent Coombs He doesn't seem like he really ever wanted to deal with landlording. More so moved and kept the home for some cashflow during a move and doesn't need the property anymore.

The deal thing:

Purchase would be done $2500 down w/ $250/month x 120 months=$32500

Selling exit strategy would be structured as a rent to own $5000 down w/ $650/month for 10 years. netting me positive $2500 to start, then cashflow after expenses. 

So, I’ve got a pretty good lead on a possible first deal! Would be a long term buy and hold property, now the numbers! Owner wants: $25k cash Or $2500 down $250 a month for 10 years Total cost: $32500 The home is currently rented for $500 a month, upon research I found out the Home is under market rent at $625 current tenants move out next month, landlord isn’t sure he wants to mess with getting new tenants. Upon more investigating I found that section 8 will pay around $900 a month for a 3 bed 1 bath in that area. My plan is to buy at option 2. Rent to own at $5k down and $650 a month for 10 years Or Section 8 the home and hold potentially forever. Am I missing something or do those numbers look fairly decent?

I will see you all there! I'm new to real estate investing and would really love to meet and connect with local Tulsa area BP Members!!

@Ola Dantis that is exactly the answer I got from my older brother when i spoke to him of REI. I simply shook my head and laughed. He was joking and knew id get a good laugh out of it.

Thank you all for your information! As stated I am already on track to get my license. And yes I do plan on starting my own wholesaling business. I have already built a decently strong buyers list from networking with other wholesalers and simply putting it out there that I am starting to wholesale. My list is not very big (7 buyers) but my buyers have told me exactly what they look for in a property as well as what their specialties are. One thing that I plan on doing differently than most wholesalers is not asking for a ridiculous assignment fee. If I can get experience and know how out of a deal I’d be glad to take less on the profit side of things. In my book knowledge will always surpass income.

@Caleb Heimsoth that’s a very good point that I had considered as well. My long term goal is to be a buy and hold investor, the problem with that is the capital I have now I got from the sale of a spare car. Building capital is rather hard in my current position. That’s why I figured I’d take the risk and try to build capital with wholesaling. I do understand that’s it’s basically a full time job, and that I may not make any money from it. I’m also enrolled in a real estate license course. I just really wanted to try and get the ball rolling on essentially marketing and putting my name out there! Weather or not I make money, chances of meeting other investors because of my marketing as well as my involvement in my local reia group is pretty likely! 

Thank you for the quick response! That’s kinda what I figured would be ideal 15-20k. That’s the reason I figured I’d start with wholesaling. Relatively low start up costs. And get me more in touch with finding the deals. And build capital as I go!

@Brian Pulaski yes I do! He's a local REI contractor, already spoke to him and got the go ahead. He also has connections with many other cash buyers!

So I’m getting started on my REI adventure. I’ve created a phone number with google voice, and created a website, I don’t have much cash to work with so I figure wholesaling with a large emphasis on marketing would be the best place to start. What would do differently? What would you do with such a low budget of $5,000?