All Forum Posts by: David H.

You live and learn. I have made some of these same mistakes to. The key to it all is keeping the perspective that it's just business. Dont get emotional about it or you can make more mistakes. And you never know the state of mind of these people so it's important to keep your wits and be smart to avoid bigger problems. I can tell you know all if this though and are just venting. And trust me I get it. Its frustrating

So I have a foreclosure under contract and they just found termites on the inspection.. Formosa termites, the worst kind. Wanted some input on whether it's worth pursuing or to just walk. The house is in a good area and ARV is probably $130k. I have it under contract for $65k and it probably needs 10-15k in repairs and updating (not including this termite issue). I would be using it as a rental that would get about $1100-$1200/mos. Rough estimate on treatment of the termites is $4k but the wildcard is the damage. I dont know the extent as the inspector said we couldn't determine without opening the walls. I dont have experience with termites but suspect it could range from minor to extensive damage which could kill the deal if it becomes a money pit. I really like the deal so am considering coming up with a ballpark estimate of damage and trying to re-negotiate with the bank. Just interested in hearing experiences and opinions that might give me some better insight since this is a new one for me.

@Mike M. I agree with the first part of your post in that money/time has been depreciated, but your second part showing that you only spent 17 hours to make that money is extremely flawed. It doesnt a count for all the time spent developing your experience and connections to get that deal. It's kind of like a day trader showing that he made a 5,000% gain in 2 hours on a hyped stock. It happens all the time but u need to have some inside scoop which takes a ton of time. I agree with your theme that real estate is much better but this illustration doesn't accurately illustrate that. It does tend to come off as hype which may not be the intent.

I dont care if they drink beer long as they dont dump it on the floor. Could care less if they grow herb long as they dont smoke in the house

If you have some money saved up I would start looking for something. If not I would start working on that. Pulling the equity from the house you are in can work as well I would just be extra cautious since it's your families. If I was talking to my self in my 20s I would say dont get discouraged. I did a flip and rental and got hit by the 08 crash so it soured me on it until about 2 years ago and I missed great opportunities. Just view setbacks as learning opportunities to use in the future. Just keep plowing forward. You ate already ahead so just stick with it and you will be in good shape.

At first I was thinking screw the rule and just do what you want. But after seeing it's a govt. Assisted loan I wouldn't do that. My view is it's a loan to help people get in thier first house without having a big downpayment and if I signed up for that type loan I would abide by the agreement. I can see why its setup up that way. Since the assisted part is in essence coming from taxpayer money than it could be viewed as a loophole to scam the system if someone was turning a profit on it so I kind of understand the rule... I think lol

I did a flip gone south in 2009 that was gutted from hurricane Katrina. I wound up renting it out until I could get a decent price whem the market recovered but everything was such a hassle I didnt do anything again until 2017. I saved money for awhile knowing I would eventually get back into it and in 2017 for the first one I found a neighborhood I liked and was just driving it one day and saw a new sign in a yard. Wound up being a foreclosure that the bank wanted out of by the end of the year so I got a great deal. I stumbled into doing the brrrr method without knowing it but it worked out good. I'm closing on a second one now and looking to get a couple a year to get to 10-20 hopefully. I'm still in the learning phase but feel like I'm getting over the hump.

Originally posted by @Derek Logue:

Originally posted by @David H.:

Originally posted by @Derek Logue:

Originally posted by @David H.:

Who said anything about doing anything illegal. I would find something within the lines to get it done. 

Sorry that i disgust you (actually I'm not at all) but I guess it's to be expected if you are ok with people that molest little kids. My decision is based nothing on thier potential to do it again, its what's already been done. Someone has to stand up for the children since you seem to be more concerned with the predators. I think this is a huge  problem with this country in the lack of severity in this department so your not going to get any sympathy from me. We are on total opposite sides of the fence on this one.

 I seriously doubt someone like you would find something "within the lines." If someone served out their sentence that should be the end of it, no registry, no shady landlords like you discriminating against them. People with your attitude is the real reason why this country is going down the toilet. I could care less for your "sympathy." I'm glad you are in another state because we have enough scummy slumlords in SW Ohio. 

Its interesting that you are hung up on me staying legal (which i never said otherwise) yet u pm me calling me names and that you would ruin my house if you had the chance, so i guess legality only applies when it suits you right. It's funny that people like you play the victim until you dont get your way then the true colors come through. Like I said if we were talking some minor crime that has a person on the sex crime list, I would understand your position. And when it comes to pedophiles, I agree with you they shouldn't be on the list. They should be in jail for life!! 

 No one is playing victim here. You are just mad because I confronted you over your illiteracy and personal bias. The problem is someone who took four tries just to spell the P word correctly can't be trusted to discern who is a "pedophile" (not "pedafile" like you tend to spell it) and who is not. The registry makes no distinction. 

You live in a state that feels prostitution and kids playing doctor are at least Tier 2 sex offenders and mark their drivers licences. 

I'm not mad at all, you didnt call out my bias, I was quite clear that I am prejudice against pedophiles. You just dont like that which is your issue as I'm good with it. 

And that's pretty typical of people that have lost thier argument when they start pointing out spelling issues lol. By the way you spelled licenses wrong, might wanna use spell check when calling out spelling, but who cares right.

Anyway this horse has been beat so have fun protecting the pedophilez! Yep, spelled it wrong for u!

I think you should save up some funds for about a year until you have what is needed. What if you dont get any tenants in it for awhile, sounds like you dont have any cushion for those unforeseen circumstances. I think your on the right track but it takes work to get there and sometimes shortcuts can set you back so I would get some money saved up.

If I did play it would be when it wasn't so huge so the odds would be better. I mean whether its huge or not would still be set lol.