All Forum Posts by: Ryan Johnson

Correct, those are expenses that would need to be taken into consideration also.

There are no common areas. Each unit has its own front/back yard and driveway.

Yes, that is landlord insurance through Allstate.

I think with the current market, the rent of $769 for a 2 bedroom in this area is good for now. Wouldnt plan on raising rent at the present time. When the lease ends next year, it may be possible then.

I really appreciate all of the feedback. JScott's price estimate of $42,700 is not bad. I have it isted for $44,900 and just wanted to see if it was in line with what other investors thought. I see I have a little room for negotiations so we will see how it goes. Thanks!

HOA: $0 (there is no HOA)
Taxes: $120.96 month
Insurance: $35 month

If we used a mortgage of $50,000 for example 30yr @ 7% = $332.65.

Total monthly expense: $488.61 (mortgage, tax, insurance)
Total monthly rent (tenants already in home): $769.00

Cash flow: $280.39

Does this look correct to you? If so, what do feel it is worth to an investor?

Please forgive the typo. I'm not sure how to edit it. Thanks.


Hello, I have a 2 bed 1.5bath townhouse for sale and would like your opinion on price, marketing, etc. These are the specs:

It is occupied by a married couple. Both are working and have no problem paying on time! NO RENOVATIONS NEEDED!! The townhouse has already been renovated, painted, and cleaned prior to the tenants moving in.

The profile pic to the left is a picture of the townhouse.
MONTHLY RENT: $769.00
LEASE TERM: 20June2009 - 31July2010
SECURITY DEPOSIT PAID: $749

1240sq/ft
Property taxes: $1,451.54 yearly
Sold for $80,100 on 12/4/2007

Please let me know what other information is needed to price this correctly. Thanks!

If so, do you form an LLC each time you make an offer on a property?

5. Forming an LLC is pointless. It will not help you lock up the property and easier.

In reference to forming and LLC. Why would this be pointless? What type of issues would you run into by doing it this way?

Once you close the AB transaction, if C (person buying your wholesale deal) is using financing, dont the banks require the property to be held by B for a certain amount of time before approving the financing for C to purchase? How do you get around this?

I would have to say multi-family homes. I am currently maxed out for being able to apply for conventional loans. Currently all of the lenders/banks that I have spoken with do not allow over 4 mortgages to be on your credit when you apply for a loan to purchase an additional property. When I bought my first property you could have up to 10 loans. If I had known that I would only be able to purchase 4 properties using loans, I would have prefered to purchase 4 quads. That way I would have 4 loans but the ability to have 16 cashflowing tenants.

The other side to that is at the time when I started buying prices were a lot higher so I couldnt afford the quadraplex units that I was finding. Now I am finding duplexes for $30k, $40k, and $50k that will rent for $750 on each side....great cashflow! The problem now is that I cant obtain conventional loans, hard money is hard to come by, and I'm having problems finding investors to partner with on buy/hold deals.

The wierdest thing(s) I have seen are:
1. A completely furnished house...beds, tv, pots, pans, clothes, etc. They finally called several months after the eviction and asked what happened to their items.
2. Porn magazines. After reading several other replies it appears renters really like porn, lol.
3. A cute family of pet roaches.

You really have to take in consideration the time you have available, costs, and if you have the right attitude to deal with the issues that come with selling the home on your own. I personally like the challenge with selling homes myself without using an agent. I have not tried a flat fee listing before, but I might try that on my next project. I basically set up a voicemail service and place signs in surrounding areas. I always receive an abundance of calls and from that point it is just a matter of finding the call that is serious and wants to move forward. I have used agents in the past but now I like trying to sell it myself.

I have ran into the same problem. I was able to purchase using cash earlier this year...gives you a lot more confidence when submitting your offer. But I eventually had all my cash invested into deals. Currently I am running into situations where other investors are offering cash and also offering more than the asking price. This was not happening here earlier this year! I have decided to team up with other investors and begin offering cash deals again. Conventional loans do not appear to be easy obtain even if you have great credit!

I would suggest getting the word out through family and friends about what you are doing, write up a deal that shows the return they will receive, and how much you require for someone to invest with you. This has worked for me.