All Forum Posts by: Prashant P.

Thanks for all the replies. I check out both but am leaning more toward Lowes.

Any preference towards a business credit card. I see American Express has alot of deals.

Getting out of the mindset that you are going to make a ton of money right off the bat like they do in all the reality TV shows.

Also, that it is just like the TV shows where you find a deal, rehab it and sell it in a hour.

I am starting a new rehab and was considering applying for a Home Depot commerical credit card. The reason was two fold. The first being I can build credit for my LLC. The second being I could use any financing deals they offer.

Anyone have any expierence with a Lowes or HD credit card. Are there any better options?

I have used the regular homeopath mortgage but not the renovation mortgage. When I I was looking the renovation mortgage was not available it investors and actually did not seem like a great deal.

There is a minimum but it depends on the lender. If I recall, Wells Fargo had no minimum loan amount. You just have to call around and find out.

I purchase my property in Philadelphia.
The property I bought was $39,000
I put down 10%

It's not a bad way for a new investor to get started.

I try to keep an I on the market but I know in the Philadelphia area there is a shortage of lower income housing. Therefore, I try to focus more on the property.

Since I am focused more on buy and hold, I look for areas that are undergoing improvments, close to public transportation, fairly clean, boarded up houses.

I would suggest going to a REI club meeting or go to a seminar held by your local housing authority. You can get some good insight. I went to the housing authority class on low incoming housing and about the types of housing which the city needs and bounus programs offered for maintaining city codes.

I am a fan of your second strategy because that is what I do. I have found that I can buy houses for $20K to $30K and easily make $300 or more cashflow a month. You will also find that it is rather easy to rent the house since most people in those areas cannot afford or qualify to buy them. There are a few things to watch out for.

You need to make sure the mechanicals and structure of the house is good. In these areas, the houses have been neglecated and usually need more than a minor or cosmetic repairs.

Make sure you are comfortable going to these areas and dealing with the people living there. They are rougher areas but if you treat the people right, you will be surprised at how much referral business you will get.

I think there are several factors to consider.

What type of rental is it? Sounds like a higher end rental so you may want to install nicer cabinets.

How hard is it to get a new section if one becomes damaged? Can you go to the warehouse and pickup a new door if you need one?

The one problem with particle board is water. If something gets spilled inside a cablinet, the cabinet can warp and become brittle.

Has she tried to refinance. She may qualify for are HARP refinance if her mortgage Ike's owned by Fannie or Freddie.

Has she tried to rent out the whole house with the semi finished basement?

Hard to say, you have to get a good look at everything. There could be hidden issues behind the walls

Just eloborate on what Mike said, you go to your county or town website and there is a section for deeds or public records. Go to that section and you will have to input an address. Information about the house such as owner and their mailing address will come up.

You can also try mailing a letter to the house. Maybe the owner is having their mail forwarded to another address.

Check with a foreclosure or short sale real estate agent in your area. Maybe it is in the process of forclosure/short sale and it is not listed yet.