All Forum Posts by: Mark D.

I agree with Rob about looking out of state. I don't mean to burst your bubble but $60,000 wont get you very far in CA without Private or Hard Money and the right game plan. It sounds like you are looking at distressed sales and if so you will need to factor in $ for the rehab (The few deals that you are finding are priced low for a reason). In the area that I currently invest, $60,000 would get me a SFR outright (including Rehab cost) that would yield a Gross rental income of $950-$1050. Keep in mind that you will need to factor in Property management expenses, maintenance, taxes and insurance.

I like 38115, 38116, 38119, parts of 38106, 38107, 38141, 38125.

I would have to disagree with Shannon that the "Hard money-Refi" model is dead in Memphis. In fact this is the only way that we are getting deals done right now. We are using private money to acquire Reo then rehab, rent and refi rate/term to pay back private investor. The key is for borrower to have 700+ fico, full doc, low dti, ltv under 75 etc. However, make sure you are paying way under retail as the new appraisal guidelines could easily kill you loan depending on market conditions. Also, no investors will back loans for borrowers with more than 4 investment properties on credit.

Taylor, I would search for private money from friends/family first. Build confidence with a couple deals and you will be surprised how many others will want to get involved in your deals.

What is your price range and investment strategy?