All Forum Posts by: J. Martin

I think it's a little easier to make mistakes or get in over your head on flips. These are oftentimes things that aren't obvious at the initial analysis.. like what's behind the walls.. and unexpected things that pop up. Be sure to leave yourself margin..

But there's lots of capital out there! You just need to find it.. You can try starting with family, friends, trusted colleagues, etc.

I'm running my 2013 numbers and 2014 projections, and looks similar alos. Thanks for sharing your longer-term average with us!

@Aaron Yates , good point about the investor homepath. I was buying an owner-occ.. Not sure about the credits on the investor loan..

I recommend use two lenders to give you GFE's (Good faith estimate). Even if you're going to go with the same one you originally wanted. I told my loan broker I needed to get another bid because I had a responsibility for my partnership, and he told me he understood and wouldn't do the deal unless he could give me the best.. He was able to match the slightly lower competitor costs in the GFE..

Let them know when they are preparing the GFE that you will be using it to compare so you can get the most competitive possible. And make sure you're comparing apples to apples on the points, etc..

@Robert Leonard , do you have problems with the high-efficiency front load washer/dryers? Or the "old school" top-load washer with front load dryer (can be energy efficient, but are different than the HE front-load).

Were they new or used when you had problems with them? I'm hoping I won't have any issues when my handyman moves in, because he can have more debris on his clothes...

It depends on the area about tenant expectations, but I think it definitely helps reduce vacancy and make the rent more firm..

30yr seems very long to me for seller financing. But not a bad rate..

If he doesn't want to drop pre-payments and you really want the financing (and you plan on holding), try to negotiate a declining prepayment penalty for the first few years when you expect it will have no impact on you.

If he's trying to invest money 30 years at 6% secured by real estate, send him my contact info and I'll give him a nice fat note secured by my CA property and give him pre-payment penalties for the first 10-15 years.. I'm a long-term buy and hold investor..

I'm jealous!

Congratulations! I'm only 5 years in to my "9-5" career, so hopefully I can cut it out in the next 15!!

I use coin-op washer and dryer in the laundry room of my 4plex. More of a convenience item for the tenants at first. But pulls in about $100/mo in quarters w/ small marginal cost ($10-20). All my master utilities, including all water for all units (plus laundry) are just over that, so it goes a long way in offsetting master utility costs. More than pays for itself. $2/$1.50 is normal in my area at laundromats. Not sure about amortized capital costs.. We'll see over time. Bought new large machines for about $1700 I believe (delivered, w/ heavy security covers for coin boxes), so they should pay themselves off in about 2-3 years. With the convenience to tenants (and hopefully less turnover/better rents), I would take a much longer payback.. Gas dryer is much cheaper to operate than electric.

Congrats!

The numbers baffle me, being from CA..

But it's just a different world out here.. Congrats!!

1) greed
2) childhood issues
3) #1 & #2)