All Forum Posts by: Brendan J.

Will should have a ton more to say on the topic when he gets back to this thread, but if I had to guess, I would say that Will makes most of his profit going into a house, rather than when he comes out. Meaning, if the investors here can find REOs, FSBOs, Short sales, at prices significantly below ARVs, then their money is already made.

A down market will keep you from getting multiple offers on your property when its posted right at what we think is market value. But if Will has done a great job rehabing the place, lists it at ~5%-7% below ARV, and has a good Realtor working for him, he shouldn't have any trouble getting rid of the property in a reasonable span of time.

Remember, you're money is made going into a deal, not out. Hench, this is a great time!!

I'm confused here, unless he's willing to sell well below what he owes, there doesn't seem to be any profit here. Closing costs on your loan or any minor rehabs will leave nothing.

Are you just trying to help this guy out, or are you trying to make money?

If its the later, I'm with Jon. You should walk.

Best of luck to you Cary! I just jumped on here about 2 weeks ago and have found BP to be an incredibly insightful and helpful group.

755 here. BTW, anybody know what lenders are classifying perfect credit as now? When I bought my house 2 years ago it was about 720.

You've got it Steve.

More REO homes for the Buy & Holders, and more renters for the landlords.

It's a Win / Win. Err, well, maybe a Win / Win / Lose if you know what I mean...

I'm not a pro by any imagination, so take my post how you will.

I'm assuming you're using an interest-only ARM HELOC. That being said,

Is $100 a month enough to pay back the loan before its called? Or are you setting yourself up for a large balloon payment at the end that you didn't budget for?

ARM - If you're barely making this thing cashflow right now, what happens when the interest rate goes up? Now you're neutral if not negative?

Thirdly, you're using an unsecured line of credit against your primary for a negligible cash flow rental and some tax advantages? What happens when the bank calls your line of credit early? Is potentially losing your primary home worth these tax savings?

Rather than reading what everyone is saying and trying to justify your position, try actually reading it for what it's worth.

Too much risk / Too little reward.

That's awful Joel. :-)

This reminds me of that show "Hoarders." If she's in a top level unit, or if all the units are on ground floor, you could air lift her out and put a nice skylight in the opening rather than patching it up...

Unless her lease still has 8-12 months until it's up, why not take ownership of the property and let her know that her apartment can't be kept in this condition. Allow her some time to gather some friends and family that would help her clean the unit up, and if she decides not to, don't renew her lease and bring in the trash truck.

If she does get it clean, you'll have helped her out and have a good tenant in return.

Lee,

Please check out Lawler-Wood based in Knoxville, TN. Clinton is only about 20 miles north of us.

The Wood family has been friends of my family for years and I would certainly trust them to manage the property very well for your client.

http://www.lawlerwood.com/
http://www.lawlerwoodhousing.com/

I'm not sure which branch deals more specifically with residentials, but if you give them a call, they'll get you in contact with who you need. Best of luck.

How would this change if you were simply wondering when to start part-time? I'm currently trying to build up more cash reserves before jumping in hopefully this summer.

25/M
FICO - 745
3 Years Experience in my field (Logistics Brokerage)
$2000/month in surplus cash (I've made the wife and I stick to a very stringent budget)
About $25K in liquid cash

Thoughts? What should I get this reserve up to before I start? 50K?

My current goal would be to start with some solid, not over-the-top, rehabs to further build up cash reserves. Followed by alternating Multi-Family cash flow properties with SFH B&H strategies. All the while doing 3-4 rehabs per year to help with the downpayments.