All Forum Posts by: Chris Allen

none yet, its an REO so i think it takes a little time.

thanks mike ill make sure to not let that slip again, well im looking into joining a local REI club any advice on that? And on another note, I am looking to get into REI to work for myself(freedom) and to create some wealth, nothing crazy if i could supplement my income and quit my job and work for myself i would be totally fine with that. How realalistic is that and is it the right reasons to get into REI, Im thinking about mostly trying to go for rentals long term stuff.

Well im just a beginer analyzing stuff i find with mikes formulas, and checking rents in the area, I am not an expert, thats why i wanna make sure im doing everything right. But ya according to his math ive found 2 properties that should work, the one i put an offer in on and one i looked at that in raytown/KC lower income area.
Heres what i did 43k purchase rents avg 850
50% operating expense 425+
286 mortage 43k at 7% 30yr=
711 so that leaves a cash flow of 139 monthly.
Also if you could get this place for less it would help too?

well this is the only one with rents over 1k.
most of the properties i see rent from 700 low anywhere to 950 or so, if your renting over 1k here your in a nice house.

i offered 57,400 about 18% off asking. too greedy? I figured i start low and see what happens.

oh i also forgot to say i use his 50% rule +mortage. I just check rents online or call if theres number on the 10 closest houses in similiar cond size etc and average them out and lean towards the lower side to be safe. Is this right for a first glance deal checking method?

as for the deal im interested in i put in an offer today but got a call about 30min ago saying another offer was put in a couple of hours before mine. so i guess im waiting now. Im pretty set on using MikeOH s formula ive been messing with numbers all day and his seems pretty good, on the safe side and i like that. Funny every REI book i read had a different formula, I looked at about 8 propertys today and using mikes 2% rule and 70% rule, 2 of them at first glance, met his criteria the others were way off. I dont understand all i read on here is how people cant find these deals, but there seems to be a few here am i doing something wrong? missing something?

well i know this neighborhood pretty well, as i live in it. theres a mixture of houses,basic 3/4 bed 2-3 bath 1200-1500sqf sell from 110ish(reo's) to 145ish and big executive beaty homes by the lake 2500+sqf sell from 220ish up to 300k.

I called the mortage company today it is with points, about 2800 in extra fees, but if it cash flows well id put the extra money down to be locked at the low rate, i mean if the property made money i wouldnt get rid of it and the lower rate would just further help that cause. You guys are helping me out a bunch!

ok i think im gonna take a quick peak at it tommorow run everything 1-3 more times lol and then put it in an offer, im gonna start low. Im the kind of guy if its not a steal or i dont get something it doesnt bother me one bit. The whole reason im interested in real estate is my most important life goal to break the chains of the 9-5 and have freedom and make my own decisions, triumps and maybe even failures but atleast its mine and i have the power to change it if i dont like it. Thanks guys for the help if this deal doesnt pan out im always looking!

maybe they or myself got something mixed up over the phone, oh well i think ill start analyzing with a higher rate to be on the safe side.