All Forum Posts by: Brandon Malone

@Daniel P. - It's good to know someone else is in the same situation. I have also been focused on some debt paydown and saving to make the next purchase. Just seems to be a slow process at the moment. However, I suppose sometimes patience can also pay off. 

Afternoon Biggerpockets community.

Let me start off by saying, I have big dreams and passion to reach financial freedom- a place where the 8-5 is by choice, not by necessity. However, I also have a very cautious and diligent type of personality. With that said, after purchasing three rentals in the DC suburbs I have expended most of my cash. I currently have three rentals, with the following equity positions. These are conservative estimates.

Property 1 = $82k

Property 2 = $80k

Property 3 = $91k

I also have the property I reside in, which has $70k equity. I have a unused $42k line of credit on this one, since getting line of credits on the rentals could be quite difficult.

I feel stuck today, and not sure which direction to take. I am interested in continuing to add to my rentals, however, my cash-on-hand is very low on the personal side, and the cash for the rentals is intended to handle any risk/turnovers.

If any of you, have hit the position I'm in and was able to find a way to continue their expansion, I'm looking for feedback and ideas. Especially in today's market. 

Generally speaking, I've seen homepath hugely overprice the homes on the market...at least from what I have seen in Maryland. I recently negotiated a home they priced at 350 down to 282 with 4% closing costs. Now this would sound like a good deal, but I strongly believe the actual going value in the area was near that range. The home was fixed up and in very good condition. Unfortunately after reviewing the HOA bylaws I had to back out of the deal as they were about to institute a no rental policy. So I definitely think you can negotiate with them, but my advice is start as low as they started high above the the value you want to purchase the price at.

I'm very late to all the responses, but I'm definitely up for being mentored. If anyone in the Washington, DC market is up for being a mentor definitely send me a note. I'm ready get going and learn the business.

@Ryan Richards. Thanks for the response. I have to say being new I am always questioning what is considered a good deal. I know my local market fairly well as I've been paying attention to it for about 4years now.

@Jory Sandusky. It's been the same in my area. I think in the past few years since I been paying attention to the market, this is the most dry I've ever seen it. No inventory at all.

I'm still pretty fresh in the real investing world. Generally speaking, I'm in one of the high areas (DC Metro), but it seems like prices have gotten pretty high in many places. Few people are even calling a bubble. I'm curious to know how other investors are thinking about the market. Are you still investing? if so, what is your strategy?

What ratio of rentals to homeownership do investors look for in a town house community to determine if it's a good investment? Is this something investors even care about seeing that they will be renting out the property themselves.

I should state the power to fine. It appears they need 90% of homeowners to agree to modify the bylaws and have not been able to accomplish that in several years. As an hoa member would you be concerned if you could not fine members for lack of maintenance to their property?

I'm looking at a buy and hold property in a neighborhood with roughly 48 homes. The HOA has no ability to fine and such as no real ability to uphold owners or landlords accountable for maintenance of the neighborhood for maintaining property values. The home is nice, but is this a bad investment when the HOA has such little power?

I recently had a contract accepted on a hoempath property that I will move into. My current property is on a 15yr term loan with a rate of 3.875. I was in the middle of shopping to refinance the property to a 30yr for a lower rate, but after my homepath contract was accepted, I have a few questions hoping I can get assistance on:

1. Should I change to refinance my current property as an investment property? 2. Is it better to convert my current resident to investment property or continue with the refinance as my primary property since with the homepath property purchase we have not even had inspections done and could possibly not go through?
2. If I don't refinance my current property, am I required to tell the lender that I will be renting out the property?