All Forum Posts by: Derek Harris

It depends. Always underwrite the market first. Look at the current population, population growth, jobs, etc. If it's a declining market or there is only a singular employer, then I would not buy it. Worst case scenario is that it cash flows now and then a few years down the road, you are left with no renters and no one willing to purchase your property.

Are you planning on using a realtor or will you be submitting the offers yourself? Some of the more common contingencies include: financing, appraisal, title, and inspection. If you get multiple offers accepted at the same time, then congrats! However, that may mean you submitted too high of an offer.

Congrats!

Most medium to large institutions are familiar with this process. I always recommend using a mortgage broker.

I enjoyed Crushing It In Apartments and Commercial Real Estate and The Perfect Investment. Biggerpockets' books are also great reads. 

Those are some tight margins. As mentioned above, make sure you account for vacancies, maintenance, CAPEX, make readies, and rising property taxes. What is your investment goal with this property?

I've used a HELOC before for REI. It all depends on if the numbers make sense. Ensure you properly calculate all holding costs. If it was me, I would not touch the reserves and just use the HELOC.

I found the following two books very helpful:
-The Book on Tax Strategies for the Savvy Real Estate Investor
-Tax-Free Wealth

Are there any questions in particular that you have?

Seller financing helps you avoid stringent underwriting criteria since it is not bound to agency requirements. The terms are completely negotiable. It is also good for deals that banks won't touch but that have a lot of potential. 

However, for this scenario, if there would be no issue with getting conventional financing and you have enough down payment, I would save my money and just get a conventional loan.  

Have you considered using a virtual assistant to skip trace for you?