All Forum Posts by: Bryan P.

As many of you have said, assets pay for liabilities. Let me know if my thoughts are accurate here. I am about to buy a primary residence for 75K with 4% down. At the end of the first year this "liability" will take about 475 dollars/month from my pocket. That's not very much "bigger pockets." I will have only paid 60 dollars/month in principle/equity during the first year.

I do have two rental properties that will produce about 380 dollars in equity per month. (Yes-I calculated the 8-10% vacancy rate and 50% expense rate that everyone on this forum talks about.)

I know this is a basic thought but that means that 380 of the 475 is made up via the rental properties.

If that's the case, I need to buy one rental property per year in order that assets pay for liabilities.

If I follow the 50% expense rule and the 8% vacancy rule for rental properties, is this a good plan? It seems, in my head, that I really could build some wealth over the course of my life, even while only making 55,000 a year in income.

Had a thought/question about assets/liabilities...

I understand alot of this depends upon my ability. Let me just ask it this way...

Have you or anyone else taken this "plunge?"

Everyone talks about the economy not allowing flippers to do well, but I think it's fear talking. I don't want to live by fear.

Ok let me ask you this. If this private lender backs out and I'm stuck with 18%, like you said, is going in full-time a risky move? It's easy to do a flip on the side in the evenings, but to go in full-time....give me some thoughts.

oops. I meant 58,000 at 10% is 5,800.

I was thinking:

20% of purchase price=7,000

Lender loans 28,000 for purchase price.
Lender loans approximately 35,000 for repairs and holding.
Total lending amount= 58,000
48,000 at 10% is 4,800.

For me, my profit would be 20,000 minus taxes=15,000 or so.

Those are just some estimations.

What would an average private lender take in this situation that I described? 35,000 purchase and 85,000 ARV.

He's taking 10% annual return on money lent.

I was recently laid off from my job. My wife has acquired an opportunity to work from home for 3000 net per month. Our expenses to run our home and live our life are 2000/month. This puts us into the exact same position as when I had my job. 1000 a month extra.

I am getting job offers for 25,000 and 30,000 and I'm not feeling it as it would be a pay cut. There aren't many jobs in this small town.

I have experience in flipping two homes in the last 1.5 years. I did them in the evenings after work when I had my job.

I am considering going full-time into flipping one home at a time, as I have a private lender ready to go. The deal is for me to invest 20% of the purchase price and the private lender would put up the rest, including repair costs and holding costs. The average purchase price would be 35,000. The After Repair Value would be around 85,000.

My thought would be to do this two times in one year.

Is this reasonable to jump right in?

Is it possible to take over another person's mortgage subject to YOU finding an end person looking to rent-to-own? Renting to own is not buying so I would assume you cannot do this. However, if you set up the contract of "rent to own and close after 2 years" is this considered "buying?"

When you take over another person's mortgage with the objective/goal of finding an end buyer renting-to-own for 2 years and closing on the property for the remainder of the balance, what are the risks for YOU? How do you minimize these risks?