All Forum Posts by: Tony Thompson

Jon - or anyone else,

Would it be better to get financing above 80% ltv and pay pmi upfront (1.75% of purchase price)? I could just pay with my $13,000 down on the property, I believe I am qualified for this option as well.

Robert's books are the first books I started reading on these subjects and I have to admit it is what motivated me to get off my ***.

I like his books, and just keep an open mind. I read enough books to get multiple perspectives from experts and then form my own decision.

Bingo. Leveraging is the (#1?) reason to invest in real estate! I never understood this until I read about it. Buy in cash, weak roi. Leverage it, strong roi. But hey I am just stating the obvious.

Easy. Thanks.

I will owner-occupy this place, it is my first property. Of course I am not going to get full price. I also get the $8,000 tax credit since it will be my primary residence. So I think the tax credit + me managing it will shred the expenses below 50%...but then again its my first. Wish me luck!

Duplex

Asking Price: $150,000

Gross Potential Rent: $1,900/month ($950/unit)

Taxes: $263/month

I have been pre approved for convential loan assuming 80% ltv @ 5.875% interest, 30 years.

Here's the catch: I only have $13,000 in cash. My parents have loaned me $18,000 for the down payment @ 5% interest for 10 years.

I have been stumped on calculating ROI for this property... I would have to somehow average out the two loans. Help.

Also Shawn, I see you are studying for your license in your profile... I would recommend the book "The Millionaire Real Estate Agent" which is also by Gary Keller.

I've read around 20 REI books so far. My favorite thus far is "The Millionaire Real Estate Investor" by Gary Keller, founder of Keller-Williams Realty.

Had to buy a copy for myself, there are some great models in there.

Dave is a smart guy. You arent investing if you pay all cash, you are protecting. Somehow I doubt he pays all cash if he is still in the biz.

I understand that Dave Ramsey offers "average" advice to people that don't know how to use a credit card.

But, Dave Ramsey apparently used to be a real estate investor. I did a quick google search and found that he had a "$4,000,000 portfolio by age 26", and it came crashing down in his early 30's.

Does he have a book or are there any sources about this phase in his life...about why he failed? Did he give up? Is he still doing REI?

Well then I might consider Quickbooks. The only thing is, it just seems too "customized" in quickbooks; in a way that seems like it wont cover all aspects of property management. I will have to check out some guides on setting up qb for property management.