All Forum Posts by: Account Closed

I would go into single family homes first. Apartments can be great, but there is a lot of work in running and maintaining them. If something happens and you have to replace a roof? there goes tens of thousands of dollars. I just repaced a roof on one of my commercial properties in Dallas and it was $65,000! If you don't have the cash on hand, you can get in big trouble really quick. Do the single family first and as you said "get a feel for tenants", then move to the big stuff. I think that you will find that you have learned a lot that way, and when you get into apartments, you'll be glad (and safer) for having that experience

I am familiar with the transaction, the paper work (lots of paper work), etc, I've done them before (lord knows we have enough pre-foreclosures in Texas). I'm just trying to find a simple article to explain it to this person. It seems everytime we get into a discussion, it goes right over her head and we keep going around and around. She is a functioning alcoholic, that may have something to do with it.

also know your areas. If you are going to buy a single family home then try not to do it where every other home is a rental. That will drive down rent rates. The old supply and demand rule. Look for schools, expanding areas, jobs with high a high numbers of relocation influx, etc. But good pocket areas that don't have a lot of rentals. These will typically be more expensive but worth it in the long run.

Where is it located? If it is an area that is a vacation destination I would lease it on a daily/weekly basis if it works. I have a condo in Austin that is worth about 100K and I lease it for $285 a day and it's leased out most of the time. That might be an option to explore. If the numbers are correct though and those are sold comps not active comps then I would probably take the cash and do a 1031 exchange into another property or two properties. Find out how many in the area, not just the complex are for lease and how many days on market before they are leased out.

This is the same type of shady dealings that I posted about a week ago. This guy is not legit and you should run away from this. Any Realtor should be looking out for the best interest of their "client" and every aspect of this transaction looks as if it doesn't.

This has been a long time debate and many will argue one side or the other and each will have a valid reason. You pretty much summed it up in your last paragraph. You have to look at your situation and decide which one works best for you. It also depends on your local market and the sub-market of where you would purchase. The cash flow might look better on paper initially but you also have to factor in such things as higher maintenance with a quad, and sometimes higher insurance costs. If you are looking for a personal bias, in my market i prefer the single family homes. I put enough down to get it the cash flow to a point where I am comfortable, then I take that cash flow and buy another one once I have socked away enough to cover the mortgage if I have a vacancy for six months or so. Also consider how long you will plan on holding it. Typically the multi-family units appreciate at a slower rate (at least in my region) and will have more days on market when you go to sell. If you are selling a multi-family unit, typically you limit your potential buyers because the only ones that are going to buy it are other investors.

OK, I just checked this barginnetwork.com site and it is a junk link site. Be careful of where these links take you. 9.99 times out of 10 it's not a good place to be.

I agree with the above post. I would also check to make sure the REO websites you are using are legit. Because "buying REO's" has almost become a buzz phrase lately, there are many people out there that just want your money. just keep in mind that you should never have to pay to get REO info from a website. Also be skeptical of any site that show's a property that is just an "unbelivable price". They use these as teasers to get you to contact them and then say "I'm sorry, that one is no longer available, but we have this great deal over here and if you get in now........etc, etc, etc." Also be aware that just because it's an REO DOES NOT mean it's a deal. Do your research on the areas you're looking.

I would suggest paying it down to zero. carrying a balance on revolving credit is probably one of the biggest factors that affects your credit score.

based on what you have said so far your debt to income along with your credit score sounds like you may not qualify for a loan, especialy an investment loan. What is the current interest rate on your student loan? do you have any credit card debt? I really think you need to address the other issue of your finances and get your credit score up first. If you can qualify for a loan, buy a duplex and live in one half. That's a great way to get started.

Tips for increasing your score:

1 pay off credit cards but DO NOT CLOSE THEM
2 don't apply for any new credit
3 NEVER apply for store credit (ie dept store cards, home depot)