All Forum Posts by: Chris Syrett

@Jesse T. @Brent Coombs It is a decent neighborhood but he has let the house go and it needs to be fixed and updated.  Also the current renters are 4 guys use it only during the week to be close to work and go to their houses on the weekend.  They don't pay much at all. I do want get into some rentals but I would like to build up capital first.

Thanks everyone for your inputs so far!

@Curt Davis 

Thanks for the reply. I am buying all cash so I won't have any of the lending fees. I was guessing I would walk away with about 20k also. For my first I am thinking it makes sense for me. What I will be gaining most is experience and if I make some money on top of that I am coming out ahead.

Hello Everyone,

A work friend of mine is selling his slum rental in Tennessee. It is in a good part of town but over the years he just always put the minimum repairs into the property. I am looking to flip it. He is asking 35k for it. It needs 40k-50k of rehab work. My realtor says she can sell it for 125k or more depending on my upgrades. I also looked at the comps and I believe I could sell it for 125k. I know there are a lot of little numbers in the equation also, so I am looking for any feedback and questions. I am at that point that I have read and read and analyzed and I need to take action if this is the right one.

Thanks!

@Joshua Houchins Sure if you could send me a copy of the promissory note I would appreciate it.

Something my Dad suggested today was to open a checking account with both our names on it. Then he could put the money in it and I could write the check out of it. When I pay him back I could deposit the money back into the same account so he could access it. Anyone have any thoughts on that idea?

@William Allen 

Great advise! I read the article and it sounds like I will be ok. I am married and one of our grandchildren is in our custody so that should cover it all. Thanks!

Hi everyone,

I am new to RE and I am looking at doing my first deal. I am looking at purchasing a SFR that has a one bedroom apartment in the basement that I can buy for 60k. It needs about 30k of rehab and the ARV comes out to be around 140k. My plan is to live in the house and rent out the basement which should cover about 90% of a 90k mortgage payment.

My parents have offered to loan me the 60k to purchase the house and after rehab I plan to get a conventional loan on it to pay them back. My parents insist on not being a part of this in anyway as far as they don’t want to have a lien on the property, be on the deed, co-owner, nothing. I know if they just wire me 60k that it will be subject to a hefty gift tax. They don’t want interest but I am thinking we need to write up a personal loan agreement with interest. If they want to gift me the interest back later that’s a lot less than 60k. I don’t want to do anything funny or get in trouble. I want it to all be legit. My dad is old and old school. He says it’s nobody’s business if he wires me the money. Of course we all know it will be reported so something needs to be in place. I would like to avoid an attorney and just write up or find a template to use. My dad is weird about attorneys also. I know in the end he will say to just keep the money but I am a responsible adult and will pay him back. It’s one thing to be in debt, another to be in debt to family.

My questions are:

1. What is the best way to write up a loan to make it all legal? Where can I find a loan template?
2. When can I get a mortgage on the house after rehab? Do I have to wait a year or does it matter because the house was paid in full at time of purchase?

Thanks!

@Thomas Lee 

I know this post is older but was wondering if you did this loan? If you did, can you give details about it? I am looking at doing the same thing.

Welcome to BP!  Starting out young is great I wish I started out that early. Good luck.

Sorry a good agent is hard to find. The one I am working with now is new and learning so is willing to do more for me then one that is making lots of money in sales. I think you are just going to have to try them out till you find one that works for you.

@Bruce Park 

Welcome to BP! I use the MLS to look for deals but also watch craigslist and network with a few wholesalers. I think it makes a lot of sense to get a duplex or something with another rental space. There is nothing better then someone else paying your mortgage for you. Good Luck.