All Forum Posts by: Craig Dieterich

It doesn't meet the 1% rule as far as a cashflow property. It would need to rent for at least $2000/mo, and that's the bare minimum. If you don't care about cashflow and this is a property that you feel is in a growing area and sure to appreciate, or a property you see yourself living in down the road and just want to get some renters in there to pay the mortgage down, then cool. But from strictly a cashflow property, I don't see this working. 

Thanks, contacted them, but their terms don't make any sense for buy and hold properties. The money is too expensive.

I'm currently looking at rental properties in the $40-75k range with 25% down, but cannot find lenders that will do loans that small. What are the options?

when looking for out of state investment properties, is it ok to call the listing agent? Seems like they would have the best info on the property being they obviously already been inside it and probably know everything there is to know about it, right? If I like the property, should I find another agent to use for the purchase, or is it ever ok to use the sellers agent?

 

@April Munoz   it's a 4 plex. each unit rents for $550. The total monthly rent is $2200

Did I do something wrong? The CoC seems unreal. Its a $80,000 4 plex that each unit rents for $550

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I realize I accidentally put 1000 lender points

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Thanks for all the input/advice. I feel like it's a good deal that makes sense, but obviously several others on here feel differently. I agree there is always risk with tenants, the quality of the rehab work, the area, taxes in that area, etc. I think I covered my bases by calling the assessors office to get accurate property tax info, had a home inspector go through both units thoroughly since I could not be there, and also found a local PM that said these units should be easy to re rent if the current tenants left. Also, the current tenants have been there for 3 months so far and the inspector said they had been keeping the place very neat and clean. One tenant is a disabled veteran which I like because it means guaranteed money for rent. Again, my real original question with starting this post was about whether its a good idea to pay cash for a deal from a taxation perspective. But as many here pointed out, taxes are inevitable, and if I'm paying them then it means I'm making money.