All Forum Posts by: Scott Harper

My good friend has been having trouble getting a government backed loan due to debt/income ratio. She gets disability income of 2900.00 month and it will continue. The house she has a contract on is 235k so her housing expense will be about 50 percent.

However, once closed this house has a separate apartment that will rent for no less than $800.00 per month . She has no other debt. She has a credit score of 750. She has an appraisal on the house for 250k but FHA did not go through. She also can put down 10 percent.

She has a foreclosure on record from six years ago that occurred due to her injury. 

Do any lenders out there believe she would be able to obtain financing through portfolio lenders and who should we try? 

Looking for long term finance at no more than 6 percent.

Thanks for your thoughts. It certainly seems difficult to know if my thinking is in line with reality. You have shared this new reality and Hosts on this site tell us to go find cash flowing deals. It seems that many investors do find cash flowing deals. However your comments do allow a person to perhaps temper expectations of a get rich quick scenario. 

My experience has been very slow growth. I bought an investment house in 2005. Anybody else would have given it back to the bank during the downturn. I stuck it out oweing on negative equity.

However is has been rented out over the years with very little cash flow and negative for about the first four years. 

Now, with changes in market conditions and various things I am now getting about $500.00 a month cash flow. 

Renters have paid the mortgage down and things are looking better now. 

My other houses have also taken time. However, these were probably my buying mistakes but sticking it out and living with integrity is beginning to pay now.

I look for those deals like this site claims to be out there but often feel my inadequacy prevents me from finding them. I just don't know. I keep dreaming and looking. 

Treasure hunting is fun and if you ever find it, it will make the dreaming and working worth while, I guess.

Albert, I enjoyed the read and all of the comments. I by no means have achieved these lofty goals but it is great that you have set out a plan. The comments to tamper eexpectations seem very helpful.

If you can save 100k in a year and can do that consistently, you can be a lender.

If you use your skill and effort to actually achieve your plan and had a million to give away, what organization would you think would make the world a better place? You have really thought out your personal goals. Consider, funding your own organization and don't give any away. You will make the world a better place. ( Not selfish) 

Not many people from Central Florida actively post much on BP. 

I was a member of CFRI for a while.

It is very clickish. 

It is feeding ground for so called gurus to sign you up for classes.

Good luck with your hacking. I wish I had done that when I was younger.

Florida is a large pennisula, you might need to tell what region. North, Central or south Florida.

Also , as you learn you can get accurate sold prices from your local property appraisers site and realtor .com

Jared, I don't know what area you are in but I will give you some limited info applicable to Florida homes. 

First, appraisals are not an exact science. You will really come up with a range. The value will ,in the end ,be what someone will be willing to pay. If structures are very similar then you can come pretty close. However, many people might get less or even more than they had originally expected to sell it for.  Sometimes there are bidding wars. If a house sits on the market more than 45 days it is over priced. 

All you can do is get the most similar comps and get a range of value. You don't really want to compare a 3 bedroom to a 2 bedroom. There is more than a square ft difference. There is a marketing difference. Less people ( families) will find a 2 bedroom functional for them.  

 Also, even if you have good comps, you need to consider a range because even a small change in market conditions could make your arv lower or higher. 

Just some extra thoughts for your considerations.

Thanks for taking the time to write this. I will try to follow your blog.

Questions if you find time.

So, it sounds like you had a year to purchase. If you had not been able to, was there anything in contract for you to renew the option and if so,at what terms. 

How was the purchase price set? Appraisal or amt seller wanted?

Who are your air bnb clients? Business people, tourists?

Thanks again. Great story. You used what you had at the time to make a change.

Well, I have no real statistical facts yet here in Central Florida but my local market watching has seen some small price drops on maybe 10 percent of homes listed on MLS. To me it is because they listed a little high to begin with to push the threshold. What I see here in my local study is homes with no real upgrades and needing some updating sell for $120-140 sq ft. If they have been modernized with granite and recessed lighting and upgraded tile showers they can be pushed as much as $180 a SQ foot. Almost all properties will sell or be pending within 30 days if priced Right. There seems to be a buyer for every property.

Normally September has a slowdown but it seems to be holding steady with new listing coming on the market. We won't see real inventory numbers posted for a while by board of realtors. New condos and new homes are still going on. Most new construction sfh will be in range of 400k to 700k.  I don't know what people can afford all of these homes.  It sure isn't Amazon 15.00 an hour employees.  I think next spring will be our indicators. I think many people are overextending themselves but everything appears strong in Florida. I welcome any other Floridian comments.

Congrats. 

I would agree that being responsive to tenants can reduce turnover. However, there are those personalities that will take advantage of your kindness.

Some tenants are just like some girlfriends. If they find out they can walk on you and they have control they will take advantage. Be just but stern.    Only my thoughts.