All Forum Posts by: Paul Amegatcher

@Margarita Guillermo  Based on the rental numbers you listed above I would still pay full asking price.  This property sounds like a cash flow cow.  You should be able to cash flow about 600 to 800 month easy at 110K invested.  Go for it.

How long has the property being listed for?  Also what is the property worth?  How much repairs does it need?  All questions that need to be answered before  you come up with you offer.  If the home is worth 100K and needs 20K in repairs then you should not pay 90K for it or even 70K.  If the home is worth 150K and needs 20K in repairs then paying 90K for it makes sense.  Hope this helps you out.  

Paul

i don't think there is an average.  Some people might work for a minimum.  The reason being you get paid based on what you can negotiate with the seller.  If you can negotiate a great deal with the seller and add a 30k mark up and still sell it to another investor then your pay is $30k.  Don't get caught up in saying I have to make $5k per deal.  Get paid based on your negotiation skills and offering great deals to other investors.  If you end buyer doesn't like you making more than $10k per deal then find a new end buyer.

LOC tied to the equity might be better than a refinance due to less closing costs on the LOC. It also allows you to use just what you need without having to commit to a set amount. The interest rate is not as good as a loan but it's very low as well. Just my two cents.

We have all made mistakes. Any investor that has not made a mistake is either lying or never invested.  This will make you stronger and as you said it will establish guidelines and rules to follow for the next one.  Good luck to you.  

The school of hard knocks graduates none.

No need to contact your current Lender about making your primary residence into a rental.  Unless there is some law or clause in your mortgage I would not inform them of anything.  Keep the low owner occupied rate so you can cash flow.

how much equity does she have in it.  You could take the property over subject to or do a quit claim deed and keep the current mortgage in place until you can refinance out. Maybe some other experts can chime in.

Welcome to BP.  I'm in Dayton as well.  Let me know what areas you are interested in investing and I maybe able to help you.  

Welcome to BP. Have you gone to any of the GDREIA or Cincy REIA meetings to network with other investors? It is a great place to meet like minded folks.

I'm originally from Ghana, West Africa and that is how it is done over there.  Tenants pay 1, 2 or 3 years in advance.  This is the norm for some countries.  I would double down on the back ground verification but I would not turn it down if they checked out.