All Forum Posts by: Gilbert Dominguez

Your premise for any kind of financing is whatever you do needs to earn you more money than what it will cost you on a monthly basis. I am not any kind of mortgage financial expert so I will not speak about specific mortgage arrangements or strategies available to you. There are others that can better clue you in such strategies as portfolio lending.

I just sit down and write down possibilities once I know what the borrowed money will costs and include all related costs against my anticipated earnings.

In your case you would consider what your existing net cash flow is then determine if what you propose to do would actually realize for you an increase in that net cash flow. That is what you would rely on not any anticipated growth in equity gains from your proposed new purchases. Although you should obviously consider that as well and work toward optimizing the possibility of realizing gains in future equity from your proposed newly acquired property (ies).

Real estate investing is usually a time based strategy so don't be in a hurry. Do everything you can to work everything out on paper first making sure your figures are as accurate and reliable as can be.

Once you do that if you can determine your move would be a profitable one for you then consider what making the move would mean to you personally, how the move would affect your life style, your time, and daily life experience.

If it looks like it would a win win situation for you then that would be a strong indication it's a greenlight but if not be ready to back down from doing it.

You have got something working good now do not do anything that would or could jeapordize that.

i have one more recommendation. Never simply assume that an addition will add to the sales price of the house your are dealing with. Base your decision on what the market supports. Be sure of those figures by checking with local real estate agents, ask their opinion.

I once spend spent allot of money remodeling a home by adding one more bedroom and one more bath plus allot more work updating a home thinking I could get another $100,000.00 upon sale. The borrow's bank appraiser appraised the house at the very same price and value the house had appraised for before all my remodel work and additions because that was what the market dictated and what that banks would support.

First before you put too much work into evaluating and pricing additions check with you local building and planning departments. There may not be a restriction per say on the number of bedrooms or bathrooms a home may have but there may be an ordinance that restricts building envelope size and lot coverage which may restrict you being able to add to the building envelope or size of the building.

Once you are sure the property has the space to meet the lot coverage restrictions if any and you can still add to the house then at least you know the building department will not turn down your application for an addition for that reason.

Know in advance you will not be wasting your time planning for and pricing the cost of an addition the planning department or building department would never allow in the first place.

I don't know how long ago you posted this question but i am an architectural designer and ex general building contractor. I just finished selling out 40 homes made from two 40 foot high cube shipping contsiners.

This is in the country of Vietnam. I connected with a shipping container supplier out of China that got me the containers delivered to the port in Ho Chi Minh City at an average cost of $1,100.00 per container.

Then it cost me an average of $375.00 per container to have them delivered from the port to the construction site. Paid $300.00 per day for a crane.

Used supertherm spray on insulation then added a small A/C unit to each home. Ended up with living units approximately 16 X 40 = 640 square feet but slightly less because of the wall thickness.

Anyway short story is each living unit was $10,000.00 all in cost. They sold likr hot cakes at $40,000.00 each. In fact i was sold out before the construction was finished.

I did not really need to finish the interiors because the supertherm works like magic but for asthetic reasons did anyway will drywall and tile floors. Plywood floors did not neef to be ripped out because they had not been treated with any chemical pesticides.

Except for steel reinforced concrete piers at each corner foundations or slabs were not required.