All Forum Posts by: Jimmy Dudley

If you have an enforceable contract you can sue for specific performance and make him sell it. If you really want to. The point is he doesn't want to give you an extension and you can't force him to. You can't even force him to tell you no.  

Make sure you consider the costs of any applicable permitting or inspections periods involved in relocation of gas appliances. I have never seen somebody set a water heater in the middle of a room. I would worry what else you may find in the property.  

The smaller local banks are where its at. Put on a suit, bring your paperwork and a smile and go for a drive. The small lenders in some areas tend to hold their loans in house so they are in it for the long run. Your may pay a half point higher, but you may be able to solve your down payment issue. I love local lenders. 

Like several others have said the "standard" says your reserves should be 6 months of PITI per investment property. Reserves can be stock, bonds, cash and yes up to 50% of your 401k in most cases. 

However a lot depends on the property and the part of the country you are in. In some areas 10K is plenty in some areas it is not. I also recommend running everything out of one account. This is crucial when the tax man cometh. Transfer your reserves into the account and conduct all you business from that one account. 

Guys love "under the table" specifically because they never intend to pay taxes on it. I never agree to under the table arrangements. They put you in an impossible situation. Even if you send them certified mail requesting their W-9 you will have to show all that documentation to the "tax man" if and when he asks. Contact your CPA and see what you should do and learn from the mistake. 

I think if it works for you then go for it. You are buying flexibility when you rent, while maintaining your investment strategy. I don't look at the interest amount on a mortgage statement as a loss to worry about, it's the cost of doing business. Plus if it makes your spouse happy then its cheaper than a divorce. 

Look at the HUD good neighbor next door program. There are discounts for teachers.

Teachers

You may participate in the Good Neighbor Next Door program as a Teacher if you are employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12. In addition, the public or private school where you are employed as a teacher must serve students from the area where the home you are purchasing is located in the normal course of business.

You may find yourself in trouble if you discharge a firearm within city limits. Surprisingly it is illegal to relocate wildlife in many parts of the country as well. I have driven them out with mothballs in their burrows. I have also used rebar stakes with wire wrapped in between, like an underground fence.   

Find a partner if the deal is as good as you say it shouldn't be too difficult. Remember, 20% of a great deal is better than 100% of the deal you have now. Also ask the seller to carry a note, never hurts to ask. 

Deep Work by Cal Newport