All Forum Posts by: Don Gouge

I am not a very sophisticated investor so please excuse this country math and my lack of worldliness.  So this property would cash flow 700 per month after borrowing an additional 140k for a downpayment. Is interest on this 140k used in computing this 700 cash flow? As I read a little further along, the nuggets of truth involving the 700 cash flow started to come out. There will be NO 700 cash flow! You have no allowance for vacancy, capex or management. I dont know all of your numbers, but I can see this 700 shrinking to zero. Calculate your full interest cost on the full purchase price along with closing costs and capex, management, vacancy, mortgage, taxes, insurance. Now ask if it was worth maxing out your equity line to break even. 

Hire a professional appraiser 

How would you account for seller concessions? 

Sometimes I wonder how some people ever get a property to cash flow. 

First, what are your plans for the property? I say that it is probably unlikely that the church will do anything with it and if they do it will probably just be used as a parking lot. A big question to ask is if the church is growing, stagnant, or shrinking? If its growing they might want to keep it for future parking. If they are stagnant but in good financial shape,they are unmotivated. If you sense the collections are lagging, they might be willing to sell. Just contact one of the elders and ask if they would consider a sale.

Advise=verb

Advice=noun.

Sorry, that is my pet peeve.

 Local guy sells new Rheem water heaters that have some shipping dents in them for $300. Drain wh while I have gone to get new one. Haul old one out and connect up new one and fill. Haul off old tank and be back home in less than 4 hours. Obviously some people don't care about wasting money.

If you are looking at a deal where you need to get 3-500 over market price per month for it to work then it isnt a deal

I need to go into the water heater replacement business.

Whoa, just a minute! Let's step back and take a look at things with a bit of clarity and not panic. If you are 33 then I can only assume that your grandparents are somewhere over the age of 70. They should be on medicare. Even with the copays and other costs, your grandmother will still get the care she needs. As to the Bill's, they arent coming to foreclose to get paid. These bills will eventually be wiped out upon her death. Did your grandfather ever have any retirement plan or has he been paying medical Bill's for the last 20 years? You need to consult with an attorney and an estate planner. You dont want to so to speak throw good money after bad at this point.