All Forum Posts by: John C.

@Jake Mad

Check with your local and state laws about predated checks.

Some states won't help you if the check bounces and you accepted it predated.

Sometimes it's best to leave it vacant for a week or two longer and find someone else.

Take the Zillow estimate with a grain of salt...... a small grain.

I have a property that is at best worth 50k and Zillow says it is worth 95k.....

Check with a local realtor and see if they can't come up with some comps for you.

@Joe Villeneuve

Telling someone to sell what they just bought and start all over is probably not cost-effective for them.

Right now he has a major safety net and in a great position to start leveraging, if he wants to, or continue to cover his butt with more owned assets and cash flow before he starts leveraging.

@Bryce Shipley

Bryce,

I think you are in an excellent position.

You're cash flowing

You own the properties

You owe nothing but insurance and taxes

The market can bust away, who cares, you own them.

The rent market can drop, assuming you will still be able to hold insurance and taxes, you should be fine.

You own them......to me this is a safety net a lot of people don't have starting out. They are taught to leverage, leverage leverage......and don't understand the risk.

In my opinion, you are very close to being able to leverage safely with less risk.

One thing you can do (keep your partner out of this transaction) is take the three deeds you have, find a local bank willing to work with you and leverage the deeds into a line of credit.

Chances are it will be interest only loan, but you will have cash available when needed to purchase additional properties or for emergencies. Be sure the net rental income covers any loans you have until you can pay back in full (another deed in hand) or you can refinance to hold itself.

Now, again, this is my opinion and I am sure I will get bashed for it but I like a good safety net before plunging in deeper waters and leverage too much.

@Tyler George

A FHA lender has the option to not to include MFH for lending.

@Mike Day

You did not mention their credit history report.

Do they have a history of late payments or account closures?

@Homer Rodriguez

I have ran into bad appraisers in the past also.

See if the bank has a dispute form and make your case by RIPPING the appraisal apart with facts from documented listings, reports, comps, ect.

Ask your real estate agent to help you with comps ect.

My bank adjusted the appraisal I disputed from 98k to 120k.

@Diandra Duncan

Red flags everywhere.......walk away, there are other houses out there.

@Brian Plajer

Don't think of them as rules, think of them as guidelines. Adjust accordingly to your market, your location and your individual requirements and capabilities.

@Kelly Bellini

It is a red flag, hate it or not.

If you ignore it now, you will have to deal with it later.

Hopefully we won't see a post about that later.