All Forum Posts by: John J.

 @Todd Murphy, 

Just to understand what you're saying... You bought two duplexes, and after refinancing (minus all the implicit costs) you will hopefully break even. But you're not including the expected rental income once the Duplexes are inhabited, am I following?

 Thank you SO MUCH! 

That is the kind of advice a real newb like me needs to see. Those pitfalls are exactly the kind of calculation mistakes I could see myself and probably many new REI folks making in the beginning. Thank you again, for mentioning them.

@Mike Cumbie I don't think I'm comfortable gifting hundreds of thousands of dollars worth of real estate. The only way I think me and my family would be ok with going in with something like this, is that it be a business or investment opportunity. So the likely disappointment is a frightening idea to keep me from pursuing this.

I have no other income then the paycheck I get from working. So to over-leverage myself for a gift seems unacceptable at this point in my life.

@Account Closed, I do have to do some real inventory on what I know I can handle, and what I think it's likely they can handle before I get too caught up in this type of decision. Why they can't get another rental, it may be hard to find a place that can fit the lot of them (See previous Post) and be affordable in the current Los Angeles market.

 A little history, my mother or both parents (IDK) had to file bankruptcy because they bought a $250k home back in 1999 - 2000 and refinanced themselves upside down. My parents were not financially literate or very business savvy. Now they make around 7k a month through multiple income streams. One of which is being a payee for two individuals who they support. With that said, it is my mother, father, nephew and two Adult Men (their payees) sharing an apartment. I don't think I could do the deal unless there was something coming back to MY family for the risk we'd be taking, even if it's $600 net profit a year after maintenance.

I haven't dove head first into throwing money at real estate. So far, I've only found it appropriate to learn, and look out for AFFORDABLE deals (that haven't manifest themselves yet). I make a middle class income and haven't settled in the BEST financial budgeting situation. But i have DECENT CREDIT (+750 Score). I have my own +$300k mortgage and a family I'm responsible for. Now, I've been propositioned to help my parents purchase a house because rent is raising hundreds of dollars a year at their current residence. First I panicked, then I thought this could be an opportunity. Not soon after, I began to think of all the doubts. THE RISK. If I found the right place, we could make their $7k/month income work, but what if the most unfortunate were to happen and they died. I'd be left with a mortgage I definitely could not afford.

As you can see, I haven't crunched the numbers yet, because the idea is still emotional. If anyone has any advice to clear this cloudy situation, I would be grateful. Thanks.

 That's funny. But starbucks will allow you to charge for free.

 But @Tom Gimer, there cell phone is definitely still on.

@Frank Chin that makes a lot of sense. Need to get the wheels spinning on how I'm going to show seasoned funds. That is, if I go the conventional mortgage route.

So, I've getting my feet wet in understanding where funds can come from for deals when you yourself have very little liquidity. I went to my local bank and they informed me that they do standard 75% of property Value REI loan, which means I just need to find 25% of w/e deal I'm going for. I will be sticking to the $100k and under in the Hampton Roads area. My question is whether or not it's unheard of to cover all or most of the down payment via credit card, or if that's even possible/legal?