All Forum Posts by: David Rundle

Mortgage questions concerning double wide on 5 acres.

I'm considering a double wide that currently resides on 5 acres. The home does not have a foundation and is skirted. Will I run into any issues as far as a mortgage goes since it does not have a foundation?

NPV and IRR are a big part of my calculations. I just passed on a home that would've made a great rental because of a roof and siding that would need replaced in the first 3 years. Didn't seem like an issue until I saw NPV calculated alongside the 50% rule.

I don't necessarily use IRR to make decisions, because the decisions I make by default have a favorable IRR. However, IRR is my brag number to my wife. "Honey, look at the return on this!". LOL

I typically use a 6-8% rate for NPV calculations. I try to think of what my money would do in a growth stock mutual fund over 3-5 years.

My excel calculations currently don't have any tax calculations, however this is making me think that they should.

@Craig Price

Welcome from a fellow okie, you'll find a lot of great resources here!

@Thomas Sanford

Welcome from a fellow Okie, I just re-listened to think and grow rich on a long car ride for the holiday's. That person who stopped 3 feet from gold went on to be a millionaire because he never stopped after that.

I'd love to chat sometime!

I'd make the fiance apply, double the security deposit, and keep the advertisement fresh in my google drive.

Thanks Richard!

Can anyone refer me to an investor friendly/knowledgeable mortgage broker in OKC?

Thanks!

Great Question here-

I have 2 engineering degrees and an MBA. The benefit is that NO ONE.. and I mean NO ONE can ever take that away from me. I ALWAYS have a safety net to fall into and can write software or do anything electrical imaginable. The MBA gave me insight to business, marketing, finance, HR, and people skills.

This was my path. I LOVE knowledge. I LOVE reading. I LOVE people. I agree 100% that college isn't the path for everyone. Just talk to 5 millionaires and you'll see what they've done more than likely doesn't have anything that is required to do with an accounting degree or an engineering degree etc.

However, in the end you can soak up as much knowledge as you want, but it's ACTION that provides results. Depending on your level of risk should decide whether or not you need a strong safety net or not.

Sounds to me like you're a go-getter. I prefer to stay fully employed and invest on the side (read all night long) for the 401k, health care, steady income, etc. That's my path, not necessarily yours.

Do what's right for you. Be a go-getter. Read the book Rhinoceros success, Dale Carnegie's How to win friends and influence people, and the book "The Go-Getter". Read what these books say (they're written on an elementary reading level) and see if they speak to you.

As someone said above, knowledge isn't only gained in the classroom, it's everywhere. I try to learn something new everyday. Good luck!

Welcome to BP @Brent Hulen - It's good to see another okie here. Stay warm these next few days.

CAP rate is capitalization rate. It is calculated by: Capitalization Rate = Net Operating Income / Property Price

I have outlined these Capitalization rate calculations and more on my biggerpockets blog as a bookmark reference

50 % rule - Half of all rental income will be spent on expenses. If your home brings in 1k per month, 500/month will be expenses.

2 % rule - Your investment should bring a 2% return each month. A 35k home should at least bring 35k * .02 as rent ($700)

The 50% rule and 2% rule are also outlined on my biggerpockets blog for bookmark reference as well.