All Forum Posts by: Casey Auciello

What are the loan terms? How much rehab is needed? If you're looking to buy and hold, the 50% rule that people discuss sounds good to use to cover all future expenses.

If the numbers don't work for holding, maybe you could flip it. You would want to check into recent sales in the neighborhood and check comps to see how to competitively price your property.

I'm in the same position- buy an investment property or buy a personal residence and have a cousin live with me and rent.

The idea of moving into a multi family sounds good, but I don't know if I really want to live next to my tenants. Plus I would be using my dad's credit to get the loan, so it would be an investment interest rate (i believe) since he already has a primary residence. So if I live in one unit, I'm losing cash flow from one unit. Any thoughts?

I would possibly reconsider your graduate degree. Is that a personal goal or something to benefit you in REI? Having completed my bachelor of business admin (focus in marketing, integral in real estate) from UC, it taught me to be an employee not an investor. There was more of a focus on RE financial concepts (definitely good to know for investing) and RE development.

There is no need for a degree from a university to be an investor. Depending on what aspect of investing you're looking to get into, you might want to reconsider your grad degree and focus on getting real world experience by doing deals and seeing how people act/react- something school can't teach.

IRR is internal rate of return. IRR is based off of cash flows and time. You can project cash flows into the future and determine what you think a property's IRR will be. I'm sure you can calculate this in Excel, but I've always used my financial calculator for it.

I am new to the forums and love to learn in an effective manner, but I am having trouble grouping information that I read. It seems that, in some instances, posts are not in the proper section/posts are not applicable to the section they are in. This seems to be especially true in the Starting Out section. I just picked a couple quick ones for examples such as asking about foundation repair (could that go under rehab?), "New Bird dog and hungry for info " (isn't there a birddog section?), various funding posts (there is a finance section to post in).

I am not saying that these are bad posts by any means or trying to point a finger, I just feel that the site would be much more effective to put these posts in sections that relate to the thread topics. If I want to read about wholesaling, I don't want to scroll through the Starting Out section to find wholesale posts, I want to read about it in the wholesale section while my mind is geared toward learning about wholesaling and grouping information in my mind about wholesaling.

By looking at the post counts, it almost seems like all the other sections should be consolidated into one thread or the Starting Out section should be removed (or even better- fill it with stickies with general FAQs) to force posts into the proper sections.

I think that it's almost an option where to put it- I could ask a rehab question in the rehab section, or just put it in the general since anything falls under general. Just my opinion, maybe it is my fault and am misunderstanding the sections. Hope it makes sense, and the info found on the site is great!

I have 2 rehab properties that I looked at today that have mold. The house that I am more interested has mold all over (not top to bottom, but it's definitely everywhere) the walls in the basement. My mentor says that workers in suits will tear the drywall out, scrub the studs, and do a few more things to ensure the mold is removed/unable to spread.

What is the cost of a remediation and is it worth the risk of having had the mold spread in other areas of the house or not being completely removed? This is not a spray with bleach job. I'm thinking it's a deal breaker. Any comments appreciated.

Alex,

I understand the underwriting issue when someone is young- so are you suggesting using the credit card for the down payment then going to a lending institution to refinance the entire property, including the down payment?

Just curious since I am young as well and want to learn tips regarding the various methods of financing property. I am getting ready to graduate college and have no job but do have a credit card from a few years ago that I built credit with ( and has a decent limit) that I could possibly put to use. Feel free to answer through PM so the thread stays on topic- I like to ask alot of questions.

Alex,

Could you explain Step 5 in greater detail? I am having trouble following the method.

Also, you say a MasterCard can be used to buy real estate- are you saying make monthly payments and pay the outrageous interest fee? And would a CC be used for a downpayment or purchase of an entire property?