All Forum Posts by: Jeff G.

I'm still a newb, sigh ... I'm trying to insure a mobile home we're rehabbing and will be ready to rent out in about a month, and my insurance lady is telling me that insurance for it will be $300/ yr for $30K in coverage (their max) which is fine with me, but then she says the insurance co will want to see a copy of the lease. Fine, except we don't have a tenant yet! I ask her, "Are you saying we can't insure the MH while it's vacant?". She answers, "No you can't. I can check on a vacant policy but I am sure it will be pricy."

Does this mean if we have a tenant move out and it takes a month for us to get a new one, we'll have no insurance for that month?? I'm awaiting that answer, but I don't get it. (assuming 1) she's right, and 2) that I'm not misunderstanding) What's the thinking here?

What say you? Tks!

Yes, here in Alachua Co I've attended quite a few tax deed auctions downtown in the court house, prepared to bid on some, and each time the price has been bid right on past what I thought was a fair price. One guy paid $5K for a dilapidated 528SF 2BR 1BA cracker shack with no driveway, no garage, 100% dirt 'lawn', in a very scary neighborhood. No idea how he's going to make $ on that, but I wonder if "a fool and his money are soon parted" applies?

Heck, maybe its cash will flow nicely ... just not sure if it will flow to him ... or to his widow.

This was whip-smart! Very nice! I only hope that someday I get to the point of being creative enough, and fast enough, to make such creative, profitable, palatable deals before the opportunity slips away.

Sadly, I'm one of those who thinks of the perfect response ... sometime after the opportunity is gone :(

So sad ... Haha!

Thanks ALL for the replies! I like the idea of not caring what the title JOB is ... you're right, it doesn't matter what I call it - income is income. If it's enough, it's enough.

I'll add that I have the cash to make the down payment, but like the idea of using a HELOC because 1) I'd like to let my home equity actually work for me instead of just making me comfortable knowing that I have a paid-off home, and 2) I can keep from taking the cash from my account.

@Jean Bolger re seller financing: You're right, the seller, who is selling 3 quads, is not interested is owner financing.

@Joe Villeneuve {snip} "Followers", are victims of their circumstances. "Leaders" take control of them.

I like this!

My job of 25+ years is winding down due to sweeping changes in the market I work. It's a long story; the job isn't ending cold turkey, just slowing way down such that I need supplemental income. I suspect there's a good chance it will end entirely sometime within the next 5 years. I really need a 2nd job for now but probably a new job altogether in the near future, but I 1) don't want to have to quit my currently dwindling job just yet, 2) don't really want to work for somebody else, and 3) would prefer to work for myself controlling my own schedule, and everything else that comes with working for ones' self.

The plan I'm considering is to purchase 2 or 3 quads using a HELOC on my own currently-paid off ~$150K home for the down payments, and me being my own PM (I have 30+ years of construction and repair experience, and some landlord experience).

Would this plan count as 1) a job, 2) an investment, 3) a mix of the two, 4) a gamble, 5) I'm nuts, or 6) _____? (please fill in the blank)

I've done the analysis (well, quite a few variations of what-if scenarios using ideal conditions, bust market conditions, and everything in between) and believe the annual cash profit will be about $29K in year 1 (excluding appreciation, tax benefits, and rent increases)

So there's a good chance that at some point soon, possibly sooner than later, I'd be relying on the success of this three-quad plan to 1) pay back the HELOC, 2) pay back the mortgages on the quads, and 3) provide me and mine with living expenses.

Does this make sense? Would YOU be willing to borrow against your own home to enter into such a plan?

Feel free to ask, if I have omitted something you need to know to consider this.

Thank you very much for weighing in, for whatever you can offer ...

Have been perusing this site, and might eventually find answers / opinions on this, but I antsy!

My ~$150K home is paid off, and I'm considering taking out a HELOC on it in order to make the 25% down payment on a $200K rental quad.

I've created a spreadsheet to analyze what I think are all the numbers, but would just like general opinions as to whether this is nuts or not.

Monthly rents in the quad are about $650 each. HELOC rate about 5%. Mortgage rate on the quad about 4.5%. I wouldn't add any add'l cash down on the quad.

Thank you!

Thanks James. Will do.

Hi I'm Jeff. Just a new guy looking for real estate information.

Trying to do the math: I see hard expenses of $1,000 + $150 + $400 = $1,550, and you said you netted $8,500. I calc a simple rate of +548.39%. And if we assume it took 45 days total, I calc an annualized rate* of +384,484,303% Wow! Fantastico!

* aka CAGR ("Compound Annual Growth Rate")

(I believe my CAGR formula is correct, but can post it if anybody wants to see it, confirm it, or correct it)