All Forum Posts by: Kevin Brown

I wouldn't. To me an asset that cash flows a little, and someone else is paying the mortgage on is worth more than $10-15k in one time profit that youll be paying capital gains plus income tax on

If your job and low debt are strong enough to get financing (they should be), Id go that route in order to acquire new rentals, and continue to let the tenants pay down your house in CC

Everything @Chris Winterhalter said was perfect. One other thing to keep in mind though is once the rehab itself is done, technically you are no longer building, and would need to switch to a vacant prop policy. I learned this the hard way when my rehab had the AC units stolen, and insurance didn't pay out (they most likely wouldn't have paid out anyways since most vacant policies exclude theft but you get the point). The general idea is that insurance for rehabs isn't very good, but we all still need to have it.

Find a number you wont lose sleep over, sell it to the first person whos well qualified and move onto the next one. I totally agree with you that waiting for highest and best offers sends the wrong message (I know that isn't exactly what you said but I think were on the same page) A few grand here or there isn't worth pissing off folks who may be great buyers for other deals down the road

IMO: joy trampoline can bring to your children's lives< lawsuits brought by tenants when tenants children break their arms

If ARV is $95k tops, Id be nervous to pay anything in the $80s. I know you said rehab was minimal, but Id have a hard time seeing the place rent well or sell without central air; (it also seems odd that a property built in 86' doesn't have central air) I know youll be saving money living in the smaller side, but factor in taxes and insurance and I don't see enough cash flow there to justify investing $80k or so. It by no means seems to be a BAD investment, but I know you can do better in Texas, especially in a small(er) city like San Marcos

Id say you have to determine in your own mind what makes a good rental and doesn't. Just because you say "Im gonna buy rentals" doesn't mean every deal you find has to be a rental. I wanted to have at least 2 new rentals by this point in 2014 and instead I have 0 because nothing I found made sense to me as a rental. I decided to flip all the deals Ive gotten so far this year because they don't meet the requirements that I've decided work best for me. Theres a million ways to invest in RE, and just about none of them are wrong.

In theory I think that would be fine. However if you plan to use this specifically for rentals and tenants, Id be a little worried that they could use it as a way to get out if they were at fault for something. That said, if you were able to add a little "terms and conditions" clause in there; I could see that being sufficient

Has nothing to do with your age. I started at 21. Im 24 now and don't look my age and I specialize in probate investing so most of my clients are a good 40 years older than me. Considering Ive never seen or heard you negotiate, and you didn't explain how most of your conversations go; I cant offer any advice. That said, I can assure you age is not the reason

You don't pay them anything. You buy the house. They get the house under contract for xx, you pay yy. The advantage is they find off market deals, and know how to negotiate. If you don't have a way to get direct to seller leads, you will most likely get better deals working with a wholesaler vs MLS