All Forum Posts by: Doug McRae

Update: I just looked up comps. He bought the house for 197,900 in 2014. A house down the street, with the exact same specs just sold for 215,000 in January. 

I was contacted by a friend to help keep him out of foreclosure and I am not sure where to go from here. Here's the facts:

3/2 1900 sqft

highly sought after area, it would rent right away for $1850

Purchased 2 years ago so has very little equity

Interest rate is 4.1%

He hasn't made payments since August

Filed for bankruptcy last year

Willing to do a bond for deed and I would assume the loan

Should I even take on this property knowing that it has no equity? Is there a way I can contact his bank and get a reduced amount to get the loan up to date?

Contact Jen Bayhi Gennaro of Tiger Town realty. They are based out of Zachary. Tell her I sent you.

Congrats guys! Love the podcasts! I just started listening through the podcasts two weeks and I am already on show 37!

I am working my way through the podcast and I often hear them talking about the 2% rule, meaning that your rent should be 2% of the purchase price. In my area I am finding that rent rates are hovering around 1% or lower. Is this normal or am I just in a bad area for rentals?

Jeff B. The only need for a balance sheet is tracking equity? I don't think so. I'm a data guy, I'd like to track every dollar that goes in and out of our properties. So I can measure our efficiency and fine tune the system. I agree, I definitely need a P&L as well. I will build both of these from scratch if I need to but I would much rather start from template and build from there.

Does anyone have recommendations on a fantastic balance sheet template I could use? Just starting out.

I'm a rookie but if I were you I would definitely rent it out. If you took 75% out of the property that would give you 487k if it is worth 650K. That's 30k over the total cash investment you have in it. And if you're getting 5k a month in rent, you would have roughly 2k in cash flow after P&I. And like you said your maintenance would be low due to the massive rehab you did (I would still budget for repairs).

How do you think it's changing how investors advertise? What are your success stories? What percentage of your advertising do you focus on social media if any?

I know of a guy who recently passed away and he has no heirs. How do we go about obtaining this property?