All Forum Posts by: Dave Kush

Hi Ashley!

A good place to start would be to contact a real estate agent, or perhaps even a lender in your area that can answer these specific questions. The lender will be able to give you the most precise answers about purchases and financing, but the realtor can give you broader information as needed. Both are critical parts of investing. You don't need to wait to start forming relationships with these people. In fact, it's probably better that you start now and let them know where you're at. 

I definitely recommend using bigger pockets to locate people. I have had very good luck with the referrals from this site in both areas. 

Good luck!!

You can definitely do the vinyl plank flooring in both areas. If you have the budget and the time and know how, tile might be better in the bathroom. If you search the forums here you will find mixed opinions on vinyl plank flooring in bathrooms. Tile is tried and true.

Using 1, 2, and 4. About to start using 3!  Haven't had any fights yet, but about to swap tenants!

Good post. I agree about not collecting in person. Not only is it easier, it leads to more on time rent payments, and it also helps convey expectations.  I learned about curb appear when flipping...Front door, mailbox, address plate, simple clean landscaping...a cheap investment to get a good return.

I like flip with rick too. Lots of good free info.

I like that idea a lot. Ask the lawyer about it for sure.  

Hi Keaton,

I had one on a personal residence and liked it a lot. I'm actually about to replace the front door on my apartment building and was probably going to go with Fiberglass.  I live near Chicago, so we get all 4 seasons and a ton of moisture.  Fiberglass door held up well.  Fiberglass is going to cost 100-300 more, but the door I'm replacing is probably close to 50 years old, so for that length of time, a little more on the cost isn't the end of the world. 

I'm interested to hear what NEGATIVE things people have to say about fiberglass entry doors.  I don't see any drawbacks but haven't ruled that out.

Dave

Man, I'll take 18% CoC anywhere I can get it, provided the deal fundamentals are solid. That said, no direct experience with mobile homes.

Hi Jake!

Check out the BRRRR book by David Greene. This will give you all the basic info, so you know what question you need to ask.

I also am a big fan of "The Weekend Millionaire's Guide to Real Estate Investing", by Mike Summey and Roger Dawson. It's a very straightforward, basic approach to buying SFH rentals, but the process is transferrable.

I don't get anything for recommending either of these. I just like them.

Dave

Good Afternoon Rick!

That's doable, if you're up for a little risk.  Essentially, you'd be clear of the mortgage +10K upfront, and then you are seller financing the other 100K.  You technically are giving a second mortgage for 100K.  I don't know all the specifics of the deal you're in, but my gut reaction is that if you're taking this risk, you need to get paid, either in the form of interest or a higher price.  Second, definitely get YOUR lawyer to draw up the note/mortgage and any other needed docs, so that you are able to foreclose on the property if there's nonpayment.   You either get paid or you get your house back.  

Double check that TN, if that's where the property is located, is a quick-foreclosure state. If so, all the better. If not, maybe ask for slightly more interest or fee, knowing that you'll have more time and cost involved if you have to take the property back.

Is the buyer going to pay you monthly payments of 4166.66 for 24 months, or is this a smaller payment with a balloon?  Can you verify they will have the cash flow for this?  Are they credit-worthy?

Inflation is a consideration right now.  Today it sits at 3.5% or so, but that could change. If you aren't at least getting interest that matches inflation, you're not actually getting 100k, but rather slightly less.  Knowing that market rates are in the high 6s at best, and much higher most likely, I would be looking for at least 6% interest.  Another way to think of it is to look at the opportunity cost. If you had 100k right now and invested it, how much would you have in 2 years?"  (T-bills, stock market, other real estate). Then try to get at least that.

If the buyer balks at a higher price or interest rate, you could always have a balloon at the end.

Again, not knowing all the specifics, financing 100k of the price for the buyer is a big ask. Don't be bashful about asking for something in return.

Thank you!