All Forum Posts by: William Donaldson

I recently purchased a 4 BR/4BA condo in my college town of Clemson, South Carolina. I'm currently a junior and will be living at the condo beginning in August with three friends. I will go from paying $530/month in rent to cashflowing several hundred dollars per month while "living for free." I've already placed two tenants in there until August and have another moving in during May who will remain there until August as well.

It definitely helps that I am a student to fill the unit with trustworthy people. But the complex itself is nice and on the low side of market rents; I believe it provides the most value. The complex is mainly managed by one major PM company, and they are already 95% full for August and they guarantee each owner at least two tenants. I will probably hold on to it for a few years after I move out and then sell once the price rises to its cap.

It does sound like there may be a potential title issue. Make sure to check into this if you do pursue purchasing the property, because almost every bank will only issue a special warranty deed.

If there was a crew that came relatively soon after you believe it was foreclosed on to remove any debris in and around the house, fix up the landscaping, etc. then JP Morgan Chase almost certainly owns the property. I was in property preservation and this is the initial service or "trashout" that a crew will perform for the bank or third-party asset management company.

You can ask the crews that come if there is a number for a broker on their work order or the asset manager. Good luck!

Greetings BP! I recently closed on my first investment property as a 20 year-old college student. I will save over $6k in rent/year while I finish my undergrad and will live for free while cash-flowing $200-300 a month after all expenses. I think it's a good first step, not a home-run, for my future investing career. With that in mind, I have a few questions:

---I will be furnishing the unit (4br/4ba) as it brings in $30 more per month per person. Where is the best place to find affordable, durable furniture? The furniture stores I've seen have more expensive, custom furniture and Craigslist is a decent option but will not provide all the furniture I need in a timely manner. I'd like for most of it (dressers/nightstands) to be identical.
---Where can I find the best information on what I can put in a SC lease? My father has investment properties and therefore a lease contract, but I want to make sure my lease has everything in it that I need and is legally allowed.
---How do I issue a cash receipt for when a tenant pays in cash?
---I had to obtain an investor-type loan (6.5%) because I had no credit (but had cash/past income). Will paying a mortgage boost my credit enough in a year to refinance at a lower rate (FHA)? Is there a way to estimate my future credit score?

I may post more questions in the thread. I appreciate any and all help you can provide! Thanks!

Sam, I believe you're overreacting. It wasn't a "juvenile personal attack," but rather a statement made based on years of experience working with numerous clients who used inexpensive tax softwares in the past. Tax law is simply complex ;)

I'm a finance major in college and next chapter we are getting into PP&E. From what I gather from reading the highlights of the material, acquisition costs are added to the cost of the land; so you are not amortizing separately.

Thanks for sharing! Also, I don't believe you're bragging at all. Potential investors need to read a success story about this, and not even because an $800,000 profit can be inspirational to some ;).

They need to understand the big profits can only be achieved after years of experience, hard work, and solid decisions that make it possible for "grand slams" such as this. Success comes when you can add value, like you've said, to a deal.

If you enjoy investing, why quit? I can't imagine being entertained day-in and day-out with shuffleboard and bingo. Maybe by the time I retire I'll have found a time-consuming hobby.

Because I'm young (20) and mobile, I will view my first few homes as investments. Buying for a great price, rehabbing, and selling 2-3 years down the road for tax-free profit will be a great way to learn aspects of the business and build sweat equity from the rehab portion while making a sound investment.

But down the road I'd like to build my own dream house to enjoy with my future family...

Welcome! I'm from Anderson, SC and currently attend Clemson University so I don't have a positive view of Columbia and the Gamecocks ;) Sounds like you're on your way up!

I am taking over some of my dad's investment properties to manage. In order to be able to meet with the Housing Authority and get set up with the Section 8 program, I need to bring a property management agreement with me. My dad and I are not concerned with a detailed contract protecting both parties from each other, as we only need this agreement for the meeting (he is a doctor and can't meet during their business hours). What will suffice in this situation? Is there a template that we can use?

What is the normal security and/or pet deposit to charge section 8 tenants and does the local housing authority pay it or does the tenant? What experience can you share from these two deposits with section 8 tenants? Also, how do you screen section 8 tenants differently?

Thanks!