All Forum Posts by: JP P.

@Bart Hedgcock

I really like what you wrote. I’ve recently gotten into the real estate game myself and have been hearing the “leverage” word for the past two years and haven’t fully understand it and how to work it to my advantage.Thanks for your post because it gave me some clarity.

@Ryan Detig

It's interesting what you put. I always wonder how people are buying homes so fast, but let me ask are you doing under and LLC? Or personal?Doesn't that max you out at 4 homes?And I would thing you have to have a sizable amount of cash because you would still have to put down a down payment right?Just trying to really understand this "leveraging" game.Outside of my primary home it's taken me 2 years to get my cash back up to be able to be reach to purchase my next rental.

@Logan Hassinger

Thanks for the response.  It would be personal preference on the 15 or 30 year.  It will really come down to the monthly payment on it at the time.  And I feel pretty confident on the rental analysis, the owner told me that 550 was set from 7 years ago (though that sounds fishy; because why wouldn't you keep the rent close or remotely close to market.)  Lastly, I would DEFINITELY be looking to get it negotiate for a greatly lesser price, but I post to look at worst case scenario.  I gather I would have to probably put 2,000 into each unit once I take acquisition, and all that factors into the price and what I would be willing to offer and comfortable with accepting.  Personally I'm aiming through due diligence, investigation, and negotiating I can purchase for 200k. But yeah, things have to fall into place for that to happen.

@Aaron Merriman

Thanks for the response.  You brought up some good pointers to think about, the 5k does make me feel some way, and I'm sure in my due diligence and inspections that would make the comfort become higher/lower.  And I referenced above on even a lesser purchase price upon inspection/viewing before submitting offer.  I really appreciate the take aways.

Hello BP folks, I would like some advice on potential property, here is my background and details.  I would move out of my current home and live in 4-plex

Currently living situation is SF home

1. Mortage - 1,000 (with HOA and rounding up on mortgage)
2. Potential Rent - 1350 (1300-1400 low to high season)
3. Likelihood of renting w/in 45 days - 70%

Potential 4-plex

1. selling price - 220,000 (would only do deal if they would come down to less than 215,000)
2. 3 occupied/1 vacant rent - 550 on month to month (1,650 p/mo);  current tenants are long term tenants;  rental market calls for 750-800
3. HOA - optional at 360 p/mo
4. Would purchase with 5% down ( 10,750)
5. I would do a 15yr loan to pay it down sooner
6. Appraisal is probably 230k. Will it appreciate? maybe at 250k in 10yrs or stay the same
7. And if I purchase this place my cash reserves would only be 5K max (and then I would be spreading that across 5 units)

What are you thoughts, understanding I will need to do more of a due diligence to confirm this is truly a good deal.  I feel like the numbers look good especially if/when I raise the rent to the market value.  And I would use savings on lower out-of-pocket and profit from SF to pay down principle on SF, then work to pay down principle on 4-plex.

Thanks,

Jeremy

Thank you @.  I am taking your advice and to understand her situation and look to help if I can in hopes that I can make a deal with her.  Then maybe if I cant, I can present her properties to the members of the investment club that I am in and see if those properties work for someone else.

I took the time last night to write a script to make sure I stay on track and hit certain points when I am able to make contact with her.

Hi all, I appreciate the advice in advance.

There is a property on my block that I am HIGHLY interested in as a rental.  The property is listed under foreclosure on Zillow (which means it really could have been sold by now) and I called the Foreclosure Trustee listed.  I was only told to call the owner.  This leads me to believe the proerty may still be available.

I've done my research, found the owner/address/telephone number/occupation/etc (Thanks Google!!) Apparently the owner is foreclosing on 2 properties!!  The market price is ~110K from the info on Zillow the unpaid balance is ~92k.  I'm looking at trying to approach the owner in the best way possible to make a deal less than the unpaid balance.  I do not have any rapport with the owner and need some advice on the best way to approach. have a realtor approach, should I call the owner directly, find a foreclosure specialist to approach??  Any advice, I'm open.

I would like to try to help this owner potenially sell for a loss, not go through a foreclosure on one of their two homes, and see what comes of it......

@Barbara G.,

As a renter at the moment.  I concur with the above statements.  I relocated and moved into an apartment while I search for a home.  Got the apartment on a Tuesday (after they were still working on it) truck with my belongings came on Wednesday, car came on Friday, and I flew out of town for 2 weeks on Friday night.  I returned on a Friday as well. Spent from Friday to the following sunday and then went back out of town for another 2 weeks.

People travel for work...family issues.  If I had my landlord (property management) send me an email/letter I would have liked that!!

And chill on the payment you either get the money or you don't then you know what to do.

Doreen Chaisson and Brian Eastman

I saw you two in a different post on issues. I greatly appreciate it

@brian Eastman and @Doreen Chaisson

I saw you two in a different post on issues.  I greatly appreciate it.

Thanks,

That's what I thought.  I was given the terms qualifying and disqualifying and wasn't real clear on the distinction aside from your family/friends couldn't live there.

With that being said, I would have to do this property the "old fashion" way and be subjected to paying taxes.

Hi All,

I'm looking to get into the real estate investing with my very first home purchase in a new city, and I've heard of this Self Directed IRA (SDIRA) form of investing tax free.

I'm purchasing a home with my Roth IRA (5,500 max p/year @ "X" amount of years) for the downpayment. I would live in this home for at least 1 year maybe 2 max. But after that I am renting it out. I've been to some seminars and have read that you can you a Custodial IRA brokerage to purchase investment properties, but I've also read I cant have an IRA purchase a personal resident because if I have part of the property financed through personal lending. I'm a little confused and looking for some clarification.

My thought process was/is:  I could purchase a home with my Roth, live in it for 1-2 years until the high market for rent, rent the place out and then use the profit from the high rental market to put back into my Roth tax free.  I would move out the house and purchase my next place to live in.