All Forum Posts by: Brad Jordan

@Greg R. Great read. I think we are seeing the affects of people trying to digest the rapid change in rates. Inventory is still historically low. Lending has been much tighter. I’m of the belief RE is the best place to put your cash.

Again, it goes back to your goals. If you are looking for cash flow, 30 yr might be the best option. If you are looking to put that money directly to debt pay down of that specific property, I would consider the 15 or 20 year. Personally, I like the flexibility of a 30 year. When times tighten up, you aren’t forced to pay the higher payment. When times are good, you have the ability to increase your principal. There are trade off to both. 

In my market and my experience, smoking hot deals aren’t being found. They are being created. I think establishing what type of investor you want to be would help you. As a buy and hold investor, a good deal is different from a good deal on a flip and vice versa. This holds true when comparing all styles of real estate investing. 

A few months isn’t exactly a good indicator on future moves. If I decided to base my future style on  the beginning few months of my first rental, I would have never bought another one. The tenant I inherited was a NIGHTMARE. Instead, I jumped into my first property with the mindset that I want to be a buy and hold investor no matter the ups and downs. I took every obstacle as a learning experience and continued on and made sure I didn’t make the same mistakes when putting in a new tenant. You will learn a ton by just committing and doing a deal. Never stop listening and learning. There will be different hurdles with every deal but experience will make the hurdles seem smaller. I wish you the best and would love to hear when you find your first deal!

Brad Jordan 

Based solely on the numbers, not knowing location or exact condition of the property, It is tough to say yes or no. I would suggest staring by asking you a few questions. What is your goal/plan for the property? What is your exit strategy( as @erikbaumer mentioned, Arv is less than your cost)? Is a 20yr mortgage the best fit for your goals?  Is 60k an actual repair number from a contractor or an estimate you have from your walk through. 

Be smart with your money. Right now it sounds like you may be in a different position than you want to be. Work hard as an agent/wholesaler to build some cash. You can do well in either of those gigs by just sticking to it and working hard. Remember, nothing worth while happens over night. Being a wholesaler can be very lucrative but it takes a true hustler, as does an agent. You can start wholesaling with no money and just a great work ethic. Go knock on some doors and see what happens. Whether you get someone to sell you their home or you help them sell it. Either can generate more stress free income 

closed about 8 months ago on 160k with 25% down. 4.875 and 2200 in closing costs. 

Thank you all for the advice! I am currently working with the housing authority and haven't made a decision moving forward. The rents are very similar to market rents. I will give an update when I have one! Thanks again!

Thanks for the advice! I want to provide a nice place for the tenant and her children. section 8 pays very close to market rent. I am meeting with them tomorrow. With a tenancy 10+ years, the carpet is bound to be worn out, but is it the landlords obligation to replace carpet during a long tenancy? Would it make sense to collect a security deposit when signing the new M2M lease?

Good Evening!

I just closed on my first investment property. I purchased an REO. There is currently a tenant that is section 8. I met the tenant last night at the property. She is currently on a month to month lease. The house needs a bit of work. A few things were caused by her and her kids(two busted windows, a couple holes in dry wall, and disposal leaking). A few things are just in need of replacing which is paint and carpet. She has been in the house for 10+ years and it looks like original carpet and paint. She would like to stay and rent is paid 100% by the housing authority. Since she is month to month with a few kids I don't want to replace the carpet and paint for them to trash it and in two months give 30 day notice to move out! If I replace the carpet and paint should I have her sign a year lease or not replace the carpet and paint, leaving her on month to month? Any suggestions or advice??

Thanks! The bank said they didn't have a lease for her. They also didn't have a security deposit as it was foreclosed upon. Since she has been in the house for 11 years would it be my responsibility to update the carpet since it is original? I would like to keep her as a tenant since the only damages to the property are the windows and a couple small holes after 11 years and guaranteed rent. Would it make sense to offer to replace the carpet and paint if she provided a security deposit? Also, what is the benefit of M2M? Is it due to only being able to evict with cause if under lease? I appreciate the help!