All Forum Posts by: Gwilym Griffiths

Even though there are varying opinions as to where we are in the cycle, i think its hard to deny that were late in the cycle. I have a good amount of cash sitting in the bank after recently selling one of my properties. I'm thinking about putting the money somewhere 'safe'(maybe something like us treasury money market fund) that would give me enough returns to match inflation, so that i could then invest that when there is a downturn/correction/recession, without losing any of my buying power. Ideally id like to invest in multifamily 5+ units. I was interested to hear what peoples opinion on this strategy would be?

@shane h I don't have any experience, and dont have a medical background. But the management team i have lined up has around 20 properties, that they manage for owners. And they only act as owners and spend a few hours a week(around 10 p/w) Have you heard of this model being successful? Me and my wife also plan to get qualified, so in a worse case scenario we could step up and run the place ourselves. cheers

@Shane H.

I'm under contract on a up and running ALF. I have a manager that I'll be using and I'll only be in charge of managing him. How demanding do you think it'll be? I already have a full time job.

hello everyone, it's great reading all this info about lease options.

I'm looking to use this method on my first property, but I have a number of questions, and was hoping someonr could help me.

If I do a lease option, wouid i still be able to refi or pull a Heloc on the property to get money out to reinvest? If so what happens then if the tennant buyer decides go ahead and buy the property?

Then what kind of rent am I sllowdd to charge should it be slightly above market value?

Does the same apply for the sales price, can I allow a certain percentage for appreciation and inflation?

What happens with the money thats paid, does it go into escrow and the essentials(Mortgsge, taxes, ins get deducted) then I get the rest? Does the rent credits stay in the escrow account?

What am I resposible for, just cap x? 

When calculating a property as a rent to own, can I leave out the costs of vacancy as there will be a buyer in there for the duration of the lease?

Also as I believe the tennant is responsible for looking after the property, do I then not allow for property management and minor repairs?

I have read as well that there is no realtor commissions on the back end when the sale happens, but there is attorney fees at the front end, will these be high?

What % is normal to ask as a down payment, do you need to keep it under 5% so that it doesn't turn into a foreclosure should you need to evict?

Is there another way to do this so that you can ask a big enough down payment to protect you and the tennant buyer?

As you can proudly tell I have a lot to learn about this matter, but any help i get will be greatly appreciated!

Many thanks 

hello everyone,

I've recently made two offers on short sales, (they both happened today)

as they looked like good deals when i quickly ran the numbers, so i made offers on both as things are going crazy fast here in vegas and i thought it was best to submit an offer then have the option of turning down the deal if it wasn't a good one.

after using the rental calculator one cash flows for 90 and the other for 60. and this is without me allowing for cap x on either, the reason for this is that ones a town home and the other is a condo, both with good hoa's, i did allow 5% for repairs which i think is a lot as the condo has just been totally refurbished and the TH was in good condition and I've allowed 1500 for touch ups, so it'll also be like new after I'm finished. my thinking was that this 5% would cover both repairs and cap x as there shouldn't be much in the way of either. is this a terrible idea for me to allow so little for both.

i would be waking in with 25k of equity on the TH and thats without my 20% down payment. and with the condo id be getting around 13k.

here are the rental calculator results for both-

any help would be greatly appreciated!