All Forum Posts by: Christopher Wedde

Going to follow this, just to prepare myself.

So to pose a question/avenue as a new investor, since I will most likely have a similar problem in the future, and trying to look at this a different way. 

Could you get a HELOC on the property? It would give you access to the equity. This option seems viable to me in this situation.

@Gil Or Sounds like it could be a legit story. Take their word on this one and show them a little trust. If they were trying to screw you then they may stop now knowing that you are watching it. Plus they did admit the normal price is much cheaper. Don't accuse them of lying. They will be the ones working on your property in the future. Just keep tabs on any more plumbing costs!

Wouldn't it be better to VA loan into another multi family? I don't know of any stipulations with it at the moment, I plan on doing it next year. To second tier VA loan into another multifamily property. If you can't I would like to know why, might affect my plans! Thanks!

You have to make the deal be a win-win between seller and investor. Correct me if I am wrong but if you take 70% of the property ARV (266k) then subtract the rehab costs (125k) you get 141k which leaves you with a expected profit of 114k. Of course there are always surprised and with this much neglect I would expect something. I am not sure if holding costs and closing cost are in your number. I did just listen to a part in "The Millionaire Real Estate Investor" that the 70% rule became less of a rule the higher the property value was. However the seller did make a choice. He chose to neglect his property, even after a tree fell on it! I would not feel bad to offer him less then he wants. He does not seem motivated to sell. Stick to your numbers, always!

They are called "Window sills" If you go to the This Old House website they have entire articles on things you can do with stuff. Window sills is one of them. I definitely have used this for ideas.

They can go to a nerby bank and deposit cash into your account that you set up with that bank. Just need to give them your account number. That's what I had to do for one of my tenants.

They can go to a nerby bank and deposit cash into your account that you set up with that bank. Just need to give them your account number. That's what I had to do for one of my tenants

Justina, You might of looked into this already but if not, you could try to do FHA loan which is 3.5% down. The only rule with that is you must live in the property for a year, but it gets you into the game. There are also grants you may get to pay for closing costs. Try looking at the HUD website for your state. Another thing, I had a co worker get offered by a bank to do 0% down conventional loan on his the house he just bought. It is his first one. A SFH that him and his wife are going to live in. He ended up doing a 3% down though instead. Not sure how to feel about that, I would be cautious with something like that.

Use Nolo for help on your states laws!

I downloaded a lease from BP and a state legal website. Then I went on Nolo and read about all the laws and it got me pointed in the right direction. Read the state laws too, as much as you can handle. Then make sure you incorporate everything into the lease as needed. Know what you will allow and what you won't.