All Forum Posts by: Mic Nguyen

Doug, did they loan to you personally or through a business entity?

I use the Hassle Free Group in Fort Myers and the normal rate is 10% plus 1/2 the first months rent.

If you buy in the Fort Myers/ Cape Coral area make sure you look into the sewer system. If the house is on well and septic tank find out when they are converting to public sewer water because they are charging somewhere around 20k for the tap. Therefore if you get a house already on public sewer you can bid a little more.

I was wondering if it would be beneficial to place my primary home into my LLC. I know that I would lose my homestead exemption, but I would be able to lower my tax liabilities because of depreciation and could show more income from rent proceeds. Just a quick thought I really haven't did the homework yet.

I've only tried 4 lenders. I think its because I just submit my 1040 and they don't ask for the schedules. They just look at the front page. I forget the line # but it will be like -400.00 for the year. So with a 39k income and 4 financed properties my debt to income ratio is already over the limit.

I wonder if I can place my primary home in the LLC and pay rent to it so I can boost income or would that mess up my homestead exemption.

OK, so I decided to walk away from this one. I just have the urge to buy something since I have some liquid cash available. I wanted to try something out of state for 2 reasons.
1st. Im noticing that my town is decrease by the minute and I don't need to invest any more money here.
2nd. I travel a lot, so I would like something where I could use as a getaway but be productive at the same time. Im having a hard time finding something that matches all the investment rules and still returns 15% of my money.

All of your comments are exactly what I'm dealing with. I don't understand banks either. Obviously If I were losing money with my 5 rentals, I wouldn't add more to my portfolio. All of my properties show a profit before depreciation. I was actually thinking about lying and say I make more income than I do just to get a loan.

Im offering 20k below list price. and yes can't get a loan because of max properties financed

I would have 1 year leases but was trying to say when one moved out, I would go down there to clean up, paint, etc. and use it to stay there while I get it rent ready again. It is in the Tampa Florida Area and there are no fix up as it is new construction. Monthly rent is only 775.00 per month minus 10% management fee. Comes to 697.50 monthly. With the 50% rule I think the ROI is 7%

I have found a home that I would like to buy as a 2nd home/Rental. I know this probably sounds insane, but I cannot get a loan.

Purchase price 60k cash.
Montly income 8400.00 annually
annual insurance 495.00
annual tax 1015.00 per 2011 year
leaves me with 6890 NOI before R&R
ROI 11.4%

Home is out of state and would use as a potential vacation home in between tenants.
How crazy is this?