All Forum Posts by: Guy Gemmer

I recommend meeting with a realtor/property manager in your area. Its relatively easy for us to pull up a "mock" property and give you a relatively specific idea of what vacancy rates, annual repairs, legal fees, etc will be so you can calculate your operating schedule correctly. Realtors want your business and will go to great lengths to secure it. Just reach out, and a good one will get you what you need.

I'm with @Marc C. on this one. We all make mistakes, Earl! I recommend coming by the ABQ REIA meeting Wednesday May 18th at the Unser Racing Museum Auditorium. 1776 Montano Rd NW, Albuquerque, NM 87107 visit the website at www.abqreia.com and check it out! They have guest speakers as well as time to network. (This month's guest speaker is honored to be a part.)

Ok, here's the skinny. There are certain things that you agree to, depending on the program, regarding the length of time you commit to living in a property. Normally, the down payment assistance comes coupled with an FHA Insured 1st Mortgage at 97% (ish). Programs like MFA grant (lend) the difference and only require you come up with 1/2 of 1% - Usually your earnest money. - You may have committed to as little as 6 months or up to 5 years. If you sell or rent the property prior to the time set out in the agreement, they can penalize you. That's not necessarily the answer to your question but it lays the foundation. Follow me...

Non owner occupied properties (houses you don't plan to live in)  RARELY qualify for these types of grants. HERO type programs are designed to increase home ownership for public servants by making it easier to qualify. For clarity, home ownership in this example is the home you live in.

Now, that doesn't mean that you cant go out and buy another property with a conventional mortgage. However, lending institutions usually require 20% down on these types of loans.

On to my personal opinions ;) - The market is stronger than it has been since 2008. Last month, home sales were up 15% from March 2014 and Inventory was down 17% - Wherever or however you're planning to force appreciation... do it now! The market may continue at this current uptick but with a big election right around the corner you're guaranteed to see some market correction; interest rate increases, REO Inventory, etc. - You can quote me on this ;) The old school standard of 3% appreciation year over year is gone and if you don't think that 3% gets eaten up by at Quadrillion Dollar national debt, well you're just not thinking it through.

The End -

P.S. I hope that helps! Reach out to a lender for further clarification. A lot of new financing depends on your ability to qualify.

Sorry for the trouble thus far. New Mexico does its own thing on its own schedule ha ha! Interested to see how this sucker turns out. 

Welcome to the Forum Thomas! @Leland Titusis a seasoned Santa Fe broker and investor. I definitely recommend getting in contact with him to chat about your market. He and @Ian Lockwoodought to be able to bring you up to speed on the important stuff. Good luck and again, welcome! 

Welcome to the forum and the business! There are a ton of great resources and professionals to rely on here. If you have any questions, feel free to reach out.

Hi Mindy! 

The floors are .68 a sq ft cherry from lumber liquidators. :) 

We did a lot in this one; roof, stucco, windows, flooring, kitchen, baths, paint... You name it! 

Here's a quick couple of pictures I had on my desktop of a flip my wife and I did last year. 

Purchase Price: $82k

Rehab: $22k

Sale Price: $135k

Holding and Closing Costs: $10k

Profit: $21k 

If you guys want to shoot me a quick message, I'll send a direct message with contact info. 

Earl, 

Check out the site for the new group! There's a meeting scheduled for next week. 

http://www.abqreia.com/