All Forum Posts by: Keith A.

You make a good point and give us a lot to think about as we progress. Great options and ideas. Thanks again for your input.

Your answers make perfect sense. We want to minimize our risk so I was thinking to only leverage enough to make the targets and look for a loan to value that is 60% or less. Also buying them under market as well to also minimize risk.

I don't see us leveraging everything so a healthy mix may be the formula for us.

We are looking to have a 15% minimum cash on cash return for our investments whether SFH or MFH. We are cash buyers and are looking to buy all cash and then possibly leverage afterwards with a cash out refi.

When analyzing deals using all cash, the returns most of the time come in under our target but then if we leverage the returns are great.

Is this something others see when doing this and either accept the lower return using all cash or leverage to get a higher return?

Thanks in advance.

Thanks everyone for the comments and suggestions. It makes sense to stick with higher value properties to have the option to leverage later on if needed.

If the strategy we plan on using is to buy cash and then use some leverage later, do we need to be looking at properties greater than a lenders minimum to finance?

For example, buying 60k properties cash and trying to do cash out refi's later would not meet lender minimums.

Is it better to buy a little higher to be able to do this?

Brian P - Thank you for the advice. We are looking locally and narrowing down the areas and doing the analysis.

Erica Roberts - I appreciate the links to those sites and will be checking them out. I am actually in the process of finding an investor-friendly Realtor. I agree with your points and am currently working on point 1 and 2 to get things going.

Thanks again for the information!

Thank you for the great advice and tips.

In thinking about HVAC, I bet many of these dont hook in the central a/c and end up putting a window unit in the conversion. Have you seen this and what you be your thoughts on it?

I see many older SFH 2 bedroom houses that have been converted to 3 bedroom houses eliminating the garage in most cases to do the conversion. So they end up going from a 2/2 or 2/1 to a 3/2 or 3/1.

Is there a risk to buying these types of SFH's with regards to permitting or anything else you can think of?

Thank you for the replies.

Just to clarify. We are purchasing another house for my father which will be close to us so we can look after him. The house in question cannot be sold as we would have to put in about 90K as it is worth about 50% of what the loan is.

He currently has an umbrella policy.

We thought to just rent it and hopefully break even not wanting to dump 90K into it when there are better investments currently out there.

Is a trust better used in this scenario? I will discuss with an attorney but wanted to see what everyone thought beforehand.

I have a situation where I need to rent my fathers property that is currently underwater. He needs to move due to medical reasons. It looks like we can get enought to almost break even.

My question is, is it a good strategy to put this property in an LLC to protect him? He has a sizable nest egg and woudl not want something to happen to it due to a tenant suit from this property.

Also, are there any circumstances where the lender would call the note by doing this?

Thanks!