All Forum Posts by: Samuel Kimani

lol, this is funny to me, cause I live in the hood, and I am more interested in investing outside of the hood. (seems that an LO would work better that way) Its also funny to me because of questioning whether to make money or not.

I agree with Tom though as far as the different perspectives on lower income neighborhoods. Its hard to mention the hood and not realize that there are race implications no matter how you cut it.

As much as I want to make money in this business and have studied info, and watched it going on in my own area I cant help but to get salty with people's attitudes at times.

"Level of gentrification" really? Its terms like that, mixed with reading different posts (especially about the economy and who's getting $$$) to see that being from different sides of the track is so real that it cant be ignored. Not everyone in these areas are deadbeats, junkie, thieves, and common criminals. Of course what's on the news has you believe otherwise, but it amazes me how many run to the area to make money.

You dont know how many people from these areas are laughing now to see the other side in a muck because of economy. Cause they aint got nothin, and now others get to see what its like.

To answer the question tho, I'd have to echo what others have said. Do it, and be ready for whatever...even a perfect tennant.

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1. Flip One

2. Buy & Hold Five

3. Hire a three man crew, and be ready to bid on any construction projects/Building Home Improvement contacts.

Yea Mike(OH), Im sure you have no reason to, but you should research the drug (and all others for that matter.)

Heroin and Meth are the exact opposites (meth is used to ween people off of heroin). I hope you do not believe that meth is just going to dissipate because one cant buy large loads of sudafed. Like Mike H. said, meth is a lot worse than crack, for some reason it hasn't gotten the attention that crack has. There are crackheads out there who wouldn't touch meth with a 10ft crackpipe.

Fannie Mae makes an announcement today to raise the number of financed investment properties back to ten. Since October of 2008, Fannie Mae had lowered the number of financed investment properties a borrower could have to three. Starting again March 1st, 2009, the limit will go back up to 10 properties. This is BIG news to the real estate investor. I think we all knew that going down to three financed properties was too aggressive of a move. Fannie Mae sites its reason for the change as a means to help with the housing recovery effort. There will be however tighter guidelines and restrictions from the previous rules below are the new guidelines for financed properties from number 5 thru 10.
* The minimum credit score goes to 720
* 75% LTV for a Purchase and 70% LTV on a Limited Cash Out for 1 unit properties
* 70% LTV for a Purchase or Limited Cash out on 2-4 unit properties
* No Bankruptcies or Foreclosures for 7 years
* No delinquencies within the last 12 months on any mortgages
* In order to count the rental income from other rental properties the investor has, a two year look back is required from the borrowers Federal income tax returns.
* 6 months reserves will be required on each investment property that you own and the subject property.

I have never been considered "Happy Go-Lucky", but I honestly believe everything is going to be fine.

I remember when the bailout came (which I wasn't a fan of) right on its heels was $630 billion that was being sent to the war. So everyone is right when we say that the Government is spending way too much.

I do believe that the economy will even out. As Michael said, we are NOT Japan...get off that. It is not 1929...get off of that.

Lets live our lives to the best standards possible (which is why most are in the RE game regardless.) and we know that doesn't always include money.

I was homeless for a spell (messed up as a renter, thought everything was down the drain, made bad decisions when things weren't as bad as they seemed.) When I finally calmed down, thought everything thru, I found a guy who wasn't really amped to rent to me, but he gave me a chance. All this was in the middle of the recession and depression talks.

Instead of seeing these times as a "mark of the end" I see it as a time to evaluate ourselves, not based on money, but on life goals. It is a time to take things in as they unfold.

As I said before, Im not happy go lucky, but I dont think the world is going to end. I work for the employment commission in my state, so trust me I see it first hand what is going on, but totalling everything up, I think we'll be just fine.

They sold for 34k on one and the other was 45k. They were fairly large (2k sq ft+...the 34k one was 2780 sq ft.) and in historic districts. The one in particular fit in the same realms. The homes were advertised as "all the hard work done for you". They re-sale for 120k-160k. Im not sure who they sold to, because this was within the past 30 days, I want to say that it was investors who got them, because here recently fixer uppers are the only ones that have been selling. I definitely want to follow up on them. (without getting emotional over them, lol)

I do understand the points that are made about the buyer pool dropping when gutting the house. If I was deeper in the game, I would take the risk (the one that I was considering is 18K, reo, been on the market 150+ days).

In this scenario, if I was to buy the house, take the plaster walls out and fix any small plumping, and paint the outside, would that make it any easier, or would it be best to wholesale it as is? The more I think about it, I would leave it alone, Im sure others have seen it and passed.

Thanks for the replies.

I guess I was just getting off on what I saw with those few that sold quickly. I definitely understand where everyone is coming from. I didn't know that banks did not like to finance gutted homes (for reference, is that for end buyers and investors alike?)

Thanks for the reality check.
:cool:

Richmond, Virginia, I'll make sure to put that on my profile...thanks for asking.

Ryan, in my area, I've seen houses being listed for less than a week, that were gutted. Granted, these homes were 2k sq ft+. It seems like it would be a great deal for just about anyone. Thats what makes me want to jump in on this.

When you tried to help end buyers see the beauty, did you use any kind of interactive programs to get the visualizations thru? I thought about regular people being closed minded, and figured a home design program may help me thru that barracade.

Does anyone have any experience buying and then gutting houses to resell them to investors? Does this sound like an incentive to any of yall, being that all the systems are gone, and time spent on the property will be installations only?

I am thinking about doing this and/or finding end buyers who want the "builder" experience of choosing their own ameneties.