All Forum Posts by: John Horner

Wow, good information to know. What is their benefit in taking this stance against wholesalers?

What does "market" mean? If I call a single cash buyer and they wrap it up does that count? Or does it mean posting on Craigslist, zillow, etc?

Thanks a bunch guys! That makes me feel better!

Wendell De Guzman, I am going to wholesale this one.

I am working on putting a property in contract to wholesale in a great and safe neighborhood in Columbus, OH. My problem is with evaluating the comps.

Property I'm looking at:
asking $60k but willing to negotiate
Currently rented for $950/month but tenant will move out early
Neighborhood is all SFH and primarily owner occupied.
3 bed, 1.5 bath
House is in great condition, big yard, nice deck, appliances and flooring are outdated but clean and in good working order.

Here are the 6 month comps on the block. Should I value it around $110k because all non-foreclosures have sold around there, or much lower because of the foreclosures?

Price Bed/Bath
$122k 3/2
$121k 3/2.5
$106k 3/1.5
$72k 3/1 (FORECLOSURE)
$68k 3/2 (FORECLOSURE)
$66k 3/1 (FORECLOSURE)

Thanks in advanced for everyone's help!

Thanks Dev Horn for sharing, hilarious signs!

Josh James, that sure would be ideal wouldn't it! At least in the Columbus market, it would be tough to get that number to 33% without putting 50% down or more. You're right about the creative financing though, I would love to find some deals like that as well!

Thanks Jon Holdman, that helps a lot!!!

I understand that, but my concern is that standard for loans I believe is 35% of your income should cover the PITI. As I acquire more rentals, even though I will increase my cash flow, my Debt to Income will increase because the odds of my rent being only 35% of my PITI is slim to none. Probably more like 50%, which will bring the DTI ratio up.

There's an old saying, "If you wouldn't let your grandmother sign that deal, it's probably not ethical".

Ok, I totally made that up, but it's true.

Sounds like you're banking on the 82 yo passing to come out on top. What if the 55 yo takes over and wants everything to go to charity. You're out $100k and STILL HAVE NO EQUITY.

Bad deal. Bad business.

I currently have 1 rental property, and a primary residence in my wife's name. I am close to purchasing a 2nd rental property, and hopefully another by the end of next year. My wife and I both have reliable full-time jobs. I already have over 2 years of landlord experience, so the rental income would be used towards our income, but I am concerned about our debt-to-income ratio when we are ready to upgrade our primary residence? Will the bank require more from me because I have so many properties and high debt compared to income?

I know you don't have much time, but when you get a chance listen to Sean Terry's podcasts. He's a genius at negotiating and using different techniques to get what he wants!

Basically you can bring it up like this "I could maybe get you $8,000 cash, but if you were willing to finance it for 3 years, I could give you the full $15k and you would have monthly income and the balance in 3 short years."