All Forum Posts by: Anthony Dooley

Buy where you know. You can't evaluate a deal if you don't know that market. What will it rent for? How much per square foot are houses in that neighborhood selling for? Local people in your town know where NOT to live, so they will not buy a flip there regardless of how nice you make it. There are other areas of your city that people will pay more because of school districts and perceptions. This is where you buy, especially your first deal. I've done hundreds of deals and I don't buy outside of a 4 county area.

@Buck B. You would learn more about deal analysis from some older Grant Cardone videos or Matt Theriault or someone on youtube explaining Net Operating Income or How to underwrite a real estate deal. If you did the analysis and you think it's worth doing, you should buy it. You will learn much more by buying a deal than gathering opinions from others. There is a saying that you are either making money or getting an education. Buy a deal. The worst that can happen is that you get smart very fast. The best thing that will happen is you will make money, which will encourage you to do more deals. 

A refinance is a new loan and must meet the same Fannie Mae guidelines. A Heloc is a separate loan and handled differently from a mortgage. 

I would contact the police about his threats. I would not hire an attorney unless he files suit against you. I would not take him to court, just cut ties and get the project finished. 

Yes on option 1. Refinance the one property and free up your available credit for a future purchase when you find one.

Matt Theriault from Epic Real Estate Investing has great content on this subject. Search him on youtube.

Don't invest in things you don't know about. Wholesalers in my area have better success with out of town or out of state buyers. They will over pay because they don't know this market very well. You add a layer of risk when buying out of state. You rely solely on the property manager, who has nothing invested in your deal and is paid by the hour.

The bank will send an appraiser. He will take photos of anything that is a concern, such as peeling or old roof. The lender will notify you of the "lender required repairs" needed in order to move forward with the loan. If those things are fixed, the appraiser will come out and reinspect those items. The lender will proceed as long as the reinspection is satisfactory. There is no need to try and guess what needs to be repaired. They will tell you.

Ask your lender this question. They will probably warn you that if your debt to income is adversely affected, you may not qualify for the mortgage when the construction loan converts. This is the most expensive housing market in history, so I suggest you take a cold shower and wait to buy a rental. 

Know your numbers and don't over-pay.