All Forum Posts by: Jason Boyer

Some things I forgot.

We would be doing a conventional loan, I think we can get around 5.5% IR, 20% down brings monthly mortgage payment to around $910 monthly.  

All utilities would be paid by the tenants.

Ask if more info is needed. I'm interested in everyone's opinion.

Here is the deal we are currently looking at.  4 single family houses (2bed1bath, 3bed1bath, 3bed2bath, 4bed2bath).  Rents are $500,$500,$845,$845, but the 4bed we would be moving into.  Based on the numbers from the BP calc...we would come out $156 ahead each month, with no house payment for ourselves.  All houses are currently occupied with 7-8 months left on the leases.  Here are the detail numbers:

Asking price $200,000 whole package

Closing costs $12,000

Upfront repairs $20,000 (this is an overestimate by alot, what dosent get used will go into a repair account to hold until needed)

Total taxes $287/month

Insurance $200/month

Monthly Rent income $1845 (about $150-$200 below market rate)

All upfront money would come from selling our current house now, which hopefully brings us 60-70K in equity.  

3 out of the 4 houses are in fairly good condition.  Basements need small amounts of work, no structure work though.  Roofs are all in good condition from visual inspections from ground level, no curling shingles.  2 could use a good scrapping and paint job on the outside.  Carpets are in good condition and wood floors feel solid.  One does have a hole and leak in the ceiling in a dining room...that would be the first project to fix.  I am a maintenance man/electrician by trade so I would be doing all the work myself to start with.  I have figured in 8% repair rate each month and an 8% vacancy rate as well.  The seller lives on the coast, just wants out of them so my plan is to start with a $150,000 offer, with contingency that we sell our house first.  I have a BP report I can share as well if anyone would be interested in looking at it.  Let me know where I can improve or what I shold change to not get myself into a bind.

Thanks

Was just wondering if anyone has had any experiences in taking the C.O.R.E. class from RichDad Education.  Been through a few free webinars and one pay 2 day class....next step is a big investment but from the description and sales pitch, you not only learn a ton but also have someone there showing you the rope...holding your hand in some sorts...  I've read a few opinions of some, just would like to see if anyone here on BP has been through the course and if it helped start them off on the right foot.

Thanks

We are currently looking at two properties, both with basements that are coming in.  What are everyone's thoughts or past experiences with doing this.  Is it worth it to buy it and do a little work to it to get it in better condition or are they more of a headache and cost too much?  We have gotten a professional estimate on one of the properties.  Just looking for ideas and others experiences.

Thanks

I have two different 401K's but with the same provider.  One is an employer contribution account and the other is a rollover from a previous employer.  They build separate, but are basically set up the same.

Thank you. I will defiantly look into it.

So instead of taking the money out completely, you can use it for a loan? 

What would you all advise as far as taking money out of a 401K to use as a down payment for our first rental property?  I know 401K's are not popular but I have two different ones, which I know I would pay a small penalty but I would not be emptying it completely.  

Thank you @Brandon Turner for the informative Webinar tonight.  Checking out the Analysis calculator right now!  Very helpful tool!

@Joe Fairless  we are going to start here in Salina first.  Town of about 50,000 with lots of rentals we are finding out.  

@Brandon Turner  I just finished your 23 Totally Awesome Life Hacks for Landlords article, very cool ideas.  Going to start making a list of things to do right off the bat.