All Forum Posts by: Curtis Shotliff

Good afternoon, I was going to put an offer in on a Bank owned home near my work. However, on Thursday a tornado went overhead (didn't touch down in town) and did severe damage to the property I wanted to put an offer on. It'll now need a new roof and one exterior wall was severely damage. The power line running to the house was shredded. Would you adjust the offer to fit these repairs in or see if there insurance company is going to take care of them? I'm not trying to take advantage of the situation, but the damage is real.

The biggest hold up on my 10,000 MPH run at this deal was getting my wife on board. I made every mistake possible with her in this process. I tried to address her emotional fears with numbers. While I have extreme fears about providing income, her fears are on the risks of having additional liabilities. I forgot to answer why we should work our tails off for this. We live in an extremely rural area with an above average income for the town. Our current mortgage on our way to big house is $138,000. Monthly payment with insurance and taxes $1,002. We are looking at a duplex for $49,900. Average rent in the area for comparable units are between $600- $725. We will need $12,000 for a down payment. This will be funded by either a cashout refinance or a HELOC on our primary residence, its estimated value is $180,000. Our contractor and the bank's have signed off that everything is kosher. All repairs would be cosmetic, we asked for an additional $5,000. The loan on the duplex is where I get a little lost. The bank is offering a 15 year commercial real estate loan with a balloon at 5 years. Payments would be $332, which is doubled up by the HELOC payment. Should we attack the HELOC like I rode into Baghdad or is the a better option? Does the deal make sense to y'all?

For the cold weather folk that are do it yourself types. Is there a special way you prepare your property's lawn for winter? Anything special or anything to avoid? #Minnesnowta

My brother in law does work like that up there.  He's out of Apple Valley.

Good evening, 

I've decided to try this real estate adventure out.  My goal is acquire rental income to replace my own income eventually. My hands are cursed with psoriasis and psoriatic arthritis.  I can no longer do labor, I'm afraid what they'll be like in 20 years. 

I'm fortunate to have good employment and a decent VA Disability check in the meantime. I am currently working on my first deal. I can defend the numbers of it, the deal is beyond good numbers wide, but I can't get my wife on board. How have y'all got a tentative spouse on board?

Curtis S.

Thank you for the response. The HELOC is more just going to be for the down payment. Getting my wife on board is the hard part! I will be sending my contractor through once financing is secured.

I'm new to Fairmont and just reread Rich Dad as well.  Best of luck brother!

Good morning, 

I woke up a few weeks ago and decided to get into the real estate game.  I have some medical issues that prevent labor already, sometimes typing in the office is to much. I and 31 years old and my hands are betraying me.

I love my 403b and am a buy and hold investor there. Figured I try to get a few rentals to replace my income down the road when I can't work. 

I live extremely rural in a community of 10,000.  The average renter makes between $26,000 and $36,000. The town averaged 4% vacancy in 2013 (the last time figures are available).  The average 2 bedroom rent is $681.

The real estate agent I bought my house from has put her duplex for sale. The sale of it would fund get daughters college entirely.  The list price is $49,900, recently dropped $5,000. Both units are currently rented, the costs won't be known until Monday. 

From the outside the property looks unkempt. Two trees either need to be trimmed or cut down.  Yard needs some love. The pictures on the listing showed clutter on the inside.  When driving by the property, the remnants appeared to be elderly.  One was outside with a medium sized dog. 

For financing I am looking at two or four different options.  Pull equity from my house and pay for it outright.  I really like this, because if 08 happens again we still own a duplex out right.  Pull enough equity from our residence to do a 20% down payment.  Wife likes this because our payment won't go up much.  (Our mortgage payment is 18% of my income.)  Borrow a downpayment from my wife's well to do parents- I really don't like this.  But my least favorite option, pulling the downpayment from my 403b.

Before I do anything though.  Does this deal make sense?  Am I rushing into this? What am i missing?

Thank you guys for your time.