All Forum Posts by: David Moore

It is when I'm buying.  Totally agree. 

You must?  Cite the law you are referencing?

Hello Again,

Woah!  The numbers out of Rochester are sizzling.  Check out realtor.com, and the housing market has about 600 homes for sale, with 1000 pus sold recently.  That is a hot housing market.   Still, there are some that have sold sub 50K.  Those were likely bank owned.

I like your term 'halfway decent'.  It means you are assessing the condition of the property.  No need buying an extreme junker that you put 35 K into, just to have a 115 year old house in the middle of similar, run down homes in a neighborhood. 

I have a possible solution.  Look at smaller towns around Rochester.  Now, it is a different school district, I grant you, but not all buyers have kids.  Pine Island is within 15 miles of Rochester, and has an average home price of $115K.  Now, I know nothing about Pine Island, so you need to do due diligence.  I have renters in Albert Lea who drive 15-20 miles to work, no big deal.

Also, since you are in Rochester, check out MBT bank for finding a good community lender.  I buy all my properties through MBT.  They are a portfolio lender.  They do not resell their mortgages to FNMA, so you can have many properties financed with them.  I like them. 

Oh, and Jeremy, don't give up, and don't hurry.  Oh, and one more thing.  Investors in my home market all buy in the Spring.  I've had good leads that vanished because in Albert Lea, spring is when they buy (and pay way, way too much.....will they learn?).   But I've found no competition in later summer, and very little competition in winter. 

Jeremy,

I find amazing deals in Southern Minnesota, and you can get them right off the good old MLS. I live in the metro, and am a member of MN REIA, and I suggest you consider investing in Rochester. Talk about growth potential. The Mayo addition is going to impact housing, so demand in Rochester should lead to some housing market dynamics that work in your favor.

I am not a flipper....strictly buy and hold.  I suggest you check out J Scott's site, 1-2-3 Flip, and also his  book on house flipping.  I actually found my target area for investing using his ideas.  

Flipping is about building a team. Even in buy and hold, I have a team. But one last thing...how you define a great deal should be considered carefully. Great deals are in the eye of the beholder. For buy and hold, I try to get 18% cash on cash investment, or get properties that rent at or near 2% of purchase price. Bank owned and HUD's will light the way...still many of them out there. Some on bigger pockets members love a 1% rent to purchase price, and in their market, that can be a huge payday.

@Randy King 

 @Jon Holdman 

I have to ask, because I've never done HUD previously. So just change out the door handle and deadbolt locks....straight and simple, right? Better than a locksmith?

I need to ask the group if they have encountered HUD stating they need the buyer to re-key a property after close. I just got word from my realtor they intend to collect the key. Do I have to do this? I'll own the property on Monday, and you know I'm getting the key.

Does it mean I hire a locksmith to re-key the property, or do they go more drastic than that?  Anyone come across this before?

You will stay a Viking fan though, right? 

I certainly don't question your experience.  My experience....my 2% properties are a breeze. 

I have no problem with any of  these statements.  Read J Scott's blog and his books.  The guy helped me find my backyard.  I am seeking to know everything about it, and it is netting me near 2% cashflows. 

Just for the record, I'm getting just shy of 2% on the deal I am closing this month.  To those saying 2% is outdated, I say, consider at least finding something else to invest in.  Because when prices exceed rents, that is a frothy market.  I go for the Buffet rule and look for investments I understand.  Real Estate is not the only investment out there.