All Forum Posts by: Joe Edwards-Hoff

Well, I offered 95k. Here goes nothing...

Good advice, I made an offer on another place last spring. I was second in line.

I live in a smaller town, so houses in that price range don't come around all the time.

Will try and see what happens.

Hey all,

I've been reading and listening to books for so long on real estate investing and now that a possible house is here I feel like I've forgotten everything that I have learned...

My dad sent me to a link for a US Bank owned home in my town. 3 bed, 2 bath, near the college. $97K and it would rent for around 1100-1200. I have not seen it but pics look good and there has been some recent wwlork done. I'd like to move in myself, with my wife and child, for a starter home and then rent it someday.

Doing the math, it seems to have potential for profit. I figure if I dont factor in cashflow for right now, the numbers work, and I assume rent increases by the time I plan to rent it will give me my desired cashflow.

Please just help remind me what steps to take and what not to forget...

ARV?

And yeah, I did factor in my down payment. Though I am also factoring in (not with numbers) that I am hoping to live there for a year or two, so hopefully rent would have gone up 3-6% by the time I do rent it.

I'm trying to look at different ways to structure the deal to make the numbers work better.

I got cut short on time during that last post.I was going to add that I figured that the house is owned by an investor. On the bright side, the house has been on the market for almost 8 months. So hopefully they'd be willing to negotiate.

On that note, I am going to need to do some more due diligence to figure out WHY it has been on the market that long. It was originally posted for 159, now it is 129, but they had it at 119 a few months ago. For some reason they rose it up.

Well my wife is actually already working at her job, it is just that it will be going from part time per diem to full time with a promotion.

I'm looking at a place in my town. It looks to work out on my math formula I have in excel for a potential rental. It would rent for 1150. If I want to put 45% of gross rent aside for expenses and have $100 cashflow, I could still make a $560 principle and interest payment.

I would like to move into this house for a year or two before renting it out. The only catch is that my wife is finishing up nursing school and has a job waiting for her at the hospital she works at, but until then we would not qualify for financing. At least I doubt we would, I'm waiting to hear back from my bank on what I'd qualify for. I, being a public school teacher, don't make all that much.

I had considered putting an offer in for owner financing. Or maybe even owner financing with a 2 year balloon payment for the balance in full. That'd give me time to get my wife working and have a better DTI ratio. The house was a foreclosure purchase, they did a nice rehab on it, they want 119k, it appraises for more, it'd rent for $1150. Any thoughts?

I am just curious how I could find out what the rent prices in my area looked like 5,10,20,30, etc years ago. More just for fun. The only idea I have is going to the local college and looking through microfiche discs of old newspapers.

Anyone know the deal in WA state? I'm trying to google it, but no luck so far...

I'm working on getting preapproved for a loan today. I should have already done this, but I wasn't expecting to be buying right now. I hope all goes well.

Question on the down payment-

I have 10% right now, but if I sold one of my cars (I teach auto shop and have many projects and toys) I could easily raise the other 10% and then some. Would the lender be ok with that as a source? I've read about who lenders like to see a history of you having the money, but I always have my extra finds tied up in car projects. If I had a bill of sale showing that I was liquidating my own assets, do you think they'd be ok? I just want to avoid PMI if possible, and I could use the extra cash on top of the DP to cover a little rehab.