All Forum Posts by: Greg C

i think it is good up here i had a lot of calls from people wanting to move up here for the cheaper rents it offers compared to more expensive areas getting closer to LA and orange county,
i think all the people geting forclosed on in richer areas are wanting to rent up here and commute

hello all i thought i would give my example so far and get opinions on what i have done
i live in the "IE" or high desert area of so calif
i worked hard during the boom years to pay off my house free and clear
last dec when things really crashed here (and still are) i bought the cheapest 3/2 REO house in my good neighborhood for 80k, having a construction background i totally rehabbed this house down to the studs so it is a virtually new house at this point i spent 20k on materials and i was the labor and it took me 9 months !

it is now rented for 1200 month ,,, i know it does not exactly fit the 50% rule but i think doing all the work myself and furure apprecation i will be ok

any way this house was thrashed and i took out a mortgage on my house to pay cash for the reo ,,, mostley because the house was in such disrepair that it needed to be bought with cash,,, and the really good deals in my town the non cash offers get tossed right out ,,, cash talks in this market

fast foreward to today i did a cash out refi on my free and clear rental house for 70k ,,,, (it appraised for $120k) i have a 800 fico and i got a 30 yr fix at 6.125%

i am in escrow for another 3/2 house in my good hood now the dumpy REOs are $64k !!! (cash ) and this one needs 10k in materials
so it is getting closer to the 50% rule ,, ,i think i can finish this one in 3-4 months and it should rent for 1200 mo also ,,,, i guess i can do this 2 more times in the next 2 years to have 4 mortgages on my credit

the refinancing has its costs but i guess all of this is techinacally "NO Money Down !"

Greg C :lol:

hi all i have been doing a lot of reading here

so put it short and consise here is my situation
leaving california and have $250k

moving to north west town of 50k- 100k pop

im interested in buying a Newer NICE 4 plex that are larger 8- 1200 sq ft per unit with garages the kind a nice family might need i dont want to deal with lower class properties and people.

most of the nice 4 plexes i see are 275k to 350 k

i can tell exactly how ALL the buildings on the mls are priced
they take the rents

example $750 mo x 4 = $3000 month x 12 months = $36000 yr

and times that by 10 = $360 k asking price

i know this senario does not fit the definition of a good deal i see talked about here
but if i did not take one of these buildings i would not be buying one
i dont want some dump i want a nice building in a nice part of town to hold forever

my plan was to put about 1/2 down on one of these places and let the cash flow pay the mortgage on the house i will buy maybe $150 - 180k down on the 4 plex and then 100k down on a house for me and my family that would cost 180 k to 225k

im fairly conservative so i dont like talk of 10% down

does this sound like a good plan to start in realestate investment ? im very handy and would do all maintence and management myself

thanks for your input! :D :D :D :D