All Forum Posts by: Arthur Lyons

Allyssa Mccleery good question. I wouldn't say it's a bad or good thing, it could be either based on a bunch of other factors. Yeah I know thanks a lot Art for that profound answer haha. My opinion is there are a ton of factors in areas with high foreclosures... sometimes those areas turn more into good rental areas. People couldn't afford to keep their homes and need affordable places to rent. In some other cases investors swoop in and buy the foreclosures fix them up above their previous condition and are able to resale. My favorite metric to determine if a high foreclosure area can be a good rental or flip is to look at the days on market of both the foreclosure and after an investor may have tried to rehab and flip. Look at those DOM's. If the days on market are high I would stay away as a flip. THEN take a look at the days on market for the rentals.. of those are low then you found yourself a good rental area. Then there are just those desolate towns where foreclosures are super high and everybody has left the area. Stay away from those also. Hope that helps.

My advice. Do both! Meaning buy a duplex/ triplex or quad. Live in one unit rent the others. Or a single family home with Abi law suite that can be rented. Then Move out when your ready. That's if your family/ relationship situation allows for that.

Start by getting the deal under contract. Until then your deal is just speculation. Once you get the deal under contract at your target price (maybe try for a tad bit lower) THEN you can shop it for financing. If your rehab numbers are solid looks like you have a good deal! There are "soft" money lenders out there who have favorable rates and would lend on this deal. Cogo capital and lending home to name a couple. Also realty share. I call them soft money just because the interest rates are a little better than Hardmoney.

This is one of the questions I use to think about often and have even spent TONS of hours researching trying to find that perfect zip code that was the pot of gold. Be Careful because It is also the type question with an ever changing answer and can lead to an analysis paralysis if you are waiting to invest until you find the Perfect location.  Lastly I don't think that anyone can tell you the exact places that cashflow the best. ACTUALLY let me rephrase that, there probably is some techie type person who is feverishly working on a formula and computer algorithm that would figure this out. Even in that case Im sure there are little towns, and pockets of certain areas in cities across this country that give pot of gold type returns.  I think it is more important to decide what you want your cashflow to be and then find and create deals that meet your criteria through creative negotiating.  Create your plan and stick to it, Eventually when bought properly ALL properties cashflow great after your tenant pays down the mortgage for you! ; )

Hi Ryan, Congrats! sounds like you have at least a seller who will work with you.  I cant really give specific numbers without knowing what the market rents are in the area?  But to answer the question of which is the best piece to go after. I say go after all of them and negotiate from there... it all depends on what type of rapport you have developed with the seller. If you have a good relationship and can throw out numbers without being offensive go for low or NO downpayment, 3% interest, low payment AND longer term.  Just look at your amortization and your debt service and ensure he can be paid off while you are cash flowing for 30 years.    Make sure to build in a clause that no prepayment penalty after 5 years OR beat whatever his definition of right away is.  Maybe he wouldn't mind a refi after 2 years even.

I also have another deal that I could put your $15k to work in for a 6% interest and we could negotiate profit share.  

I have a property that is wrapping up a full rehab that i would sell, brand new everything from roof to basement (not finished). Appraised value should come in at $85k when done. I'd sell it for ehh $70. Rents $950-1100 depending On if you do section 8 (gets higher). My property manager could sell you property, rent it out and everything send you checks. You should be able to get a loan with $15k down.

22! Oh your golden! Keep reading bigger pockets and educating yourself you will do great!

Check out REIguard.com. I've found them to be Very reasonable cost for vacant flips!! They understand our business and have great rates. *i hear of if you ever have to collect a claim it could be difficult, but knock on wood that doesn't happen to any of us! I haven't had to actually file a claim up to this point.

oh one more thing. Buy the rental property correctly to begin with and you should have some equity in it anywhere from 20-40%. Refi and Use THAT money to buy the next one that you wanted.