All Forum Posts by: Franklin Romine

Justin I have a similar deal in escrow. Two homes, one lot, similar purchase price and rent. I go the seller to finance with 20% down for 10 years.

If your plans are to be aggressive buying properties to hold then the less you can put down the better, if they cashflow.

Regional bank. It was a commercial line of credit. I don't think they have a limit. It is all about capacity, assets, liabilities, relationships, presentation/plan, cashflow and sometimes how the underwritter woke up. I had an existing relationship with the bank. At the time with them I had 4 portfolio loans and some cash sitting in an account. I wasn't running my primary business transactions though them or my day job income.

That example was a unsecured line of credit. They probably looked at my capacity at the time.

Maybe. But, you would probably be better off requesting a line of credit to purchase the properties and then refinancing once you control them. That line of credit would make your life much easier buying. If you are buying prolems it will probably be almost impossible to find a lender that will loan on the purchase or it will be 50% down or they might require cash in a escrow account for repairs. Here is an example from one of my deals... $40K line of credit. With my cash and line of credit I bought a $47K house, needed $8k in repairs, total cost $55K. Rented and refinanced 3 months later for a $45K loan. Paid the line off and got back some of my own money.

Wow... "standard plan of 11K per month". That is 11K of net income. What a nice example of good debt vs. bad debt. Seems likes schools should be teaching people to take out loans to buy real estate rather than education.

Think about it... after years of education and 900K in debt you still have to work 60 hours a week. The more debt I take on the more free time I have and income.

Same here. It was actually a hot water line. You could feel the warmth on the slab. A cold line could go undetected for years.

Marie is right, I didnt see the rent was $400. That is low and it probably wouldnt matter considering the cost to add laundry. My small homes go for $775+.

laundry could be a deal breaker for a tenant. I have several small older homes everyone has laundry. In a tight space I have added laundry in the kitchen. Stacked one piece unit in the corner. The units are pricey, just bought one for about 1k. If you don't have laundry it is an additional expense for a tenant traveling to the mat.

those are really good terms. I have been cashing out at 70% LTV 6.5% interest 30 yr due in 15.

is your waterline ran under the slab? I've seen copper leak under a slab.