All Forum Posts by: Brant Richardson

Keep on marketing like crazy. Go to all the REIA's, talk to property management companies, put a for sale sign in the front yard. Hopefully you can cut HIM out of the deal. If it's a smoking deal you might just pull it off.

@David Soria 

 I'll send you a PM.

@David Soria , Welcome to BP.  I live in Santa Barbara so I know how hard it is to find cash flow in CA.  I am currently investing in Kansas City.  The cash flow there is higher than Vegas.  Vegas has potential for more appreciation but I just can't get over the feeling that investing in Vegas right now for appreciation is kind of like gambling, the markets swings.  I have a great guy in KC who helps me find deals in the suburbs and get them rehabbed, let me know if you are interested in his contact info.

Most banks I have talked with require this once you hit loan #5.  If the reserves are a problem it shouldn't be hard to find another lender who does not have a requirement until you hit #5.

Most will only count a percentage of retirement accounts toward your reserve, they may even ask for paperwork to see how much you could withdraw in an emergency.

Wow, at first I thought this was sure to be a disaster with you jumping in to full time so quickly.  As I read on I was impressed with the post before I even saw the pictures.  Now that I see the pictures though it is clear where that 100k rehab went.  A lot of creative thinking going on in how to make these deals work too.  Great job, keep up the good work.

Buying a duplex and living in half is a tried and proven approach.  Do not rent the other half to one of your buddies.

Remember all your expenses;  mortgage, property tax, insurance, utilities(water, gas, electric, trash), vacancy 10%, maintenance 10%.  That 10%  is of the rent for both sides of the duplex.

It depend on how active/passive you are willing to be in your investment.  If you are happy with how things are going with the 23k property then stick with that model, the return is great.  If you have a crazy demanding career then bump up to the B properties that will need less of your time.

I don't have a hard money lender for you. Start networking to find one. Go to some REIA meetings and talk to other investors about it, search the internet, keep asking here on BP then get on the phone and call, call and call some more.

You need real comps, not the tax roll assessment.

You also need to go in and make your own determination of rehab needs.

If the numbers are correct then go for it.

Got to all the local REIA's in the area and make connections. Start a website. Market on Craigslist.

Now that you have screened this property with the 50% rule and have found that you are interested, you need to run the actual numbers to see what the real cash flow is.

$1000 - mortgage - prop tax - insurance - maintenance (10% = 100) - vacancy (8-10%) - property management (if you use it) = cash flow.

Also, is the place truly rent ready or does it need some rehab?  Water heater new? Roof?