All Forum Posts by: Joshua Lidberg

Has anyone had issues with the properties appraising in less desirable neighborhoods of the city, such as 19140, to cash out re-fi? 

Keep your priorities first. If you are required to mitigate damages by local law, perhaps you could refund whatever will remain after you are made full. 

I highly doubt that what they are describing, is actually what happened. This is very likely an excuse to get out of the lease for free, because they did not like something or changed their mind. 

On this subject, I had a university professor who said that there is always someone in the class, whose grandparents die multiple times during the semester. 

If leasing the house is not a temporary measure to keep it occupied while you are away, and you have no plans of coming back in the near future, I would definitely try to sell it. In any market, if it's a top of the market rental, you will be receiving lower returns, rather than on mid to low point price range. I would sell it, and buy multiple strong cash flowing rentals to have my money invested at a higher return. 

Not enough context here. Have you won the auction, and is the property under contract? I was talking to my RE attorney a few days ago, and they had a client who came to an occupied REO he had under contract to walk around it. He did not have any contact with the tenant. However, the next day, the law office was notified that the bank is terminating the contract. It was very difficult to get the earnest money back.

On a separate note, are you sure that it in fact is occupied? If it's an REO auction, it is common for the bank to list the property as occupied, since it was occupied when the bak took possession of the property. It may not necessarily be occupied months later, when the lender is auctioning the property.

 Some states require you to prepare using a state approved course, from an approved vendor. I would suggest looking this up specific to your state. 

Networking through REIA's and other avenues with local investors is a necessity. Besides this, a strategy I saw some wholesalers approach, is looking up past sales and seeing who is buying in the neighborhood you are selling. For example, if you see one name/entity popping up frequently as an owner in a neighborhood where you have a property under contract, they will most certainly be interested in what you have to offer.

 Personally, I rather have higher cash flow, rather than pay less interest. Especially, when we are referring to a fairly long period of time. A dollar today, is worth more, than a dollar tomorrow. With a 30 year, you can still pay it off in 15, but you cannot do the opposite. A longer term give you more options. 

 "if you screen your tenants properly", they should, or it is expected that they will behave. Whether they are section 8, or not, will not change how they behave themselves. And at least with section 8, you do not have to worry about rent payments. I have heard horror stories of real estate investing...

If you could more than double the CAP rate with going to a lower class neighborhood, and section 8 - I would most definitely do that. Not only your rent would be guaranteed, but if you screen your tenants properly, they should not be a problem. A lot of folks understand, that if they do not behave as they should, and you report them, they could be kicked off the program.

I would, however, be worried about HOA. Special assessments could hit really hard. To each their own, but I prefer buying in non-HOA and allocating the funds on my own to a separate account for maintenance, Cap-Ex, vacancies, etc.

Some people on this thread claim that agents perhaps earn a higher ROI by investing in themselves, which could be the case. However, those are 2 completely separate activities, and both should be implemented for diversification. Their income from day jobs could be considered operating activities, and investments would of course be considered investing activities.

None of us won't be able to, nor have the desire to work forever. (Good) Real estate investments will allow you not to rely on your job for income.

Also, some people only consider their cashflow as income from their RE investments. When you account for everything, the cashflow, loan pay down, appreciation, tax benefits, leverage, and that once the note matures and is fully payed off, your cashflow will triple - the overall returns are astonishing.