All Forum Posts by: Brant Richardson

I have given a $40 Trader Joes card at Christmas before.

I meant

The break even point is when the cash flow is 6.55% of your down payment, but even then you pay down the principal of the mortgage a little.

If you plan to live in half of the duplex then you will get some very nice tax write offs which will sweeten the deal.

Depends on the cash flow of your duplex. If it cash flows enough to pay all its expenses, the mortgage and your student loan then you are golden. The break even point is when the cash flow is 6% of your down payment, but even then you pay down the principal of the loan a little.

You're the man with the answers. Thanks.

Thanks for that link David. That definitely gives me a feeling of freedom to invest more opportunistically. Did you look into whether rates are increased as you get in to loan 5-10?

It seems like an unsecured note would require a lot of trust and I am a stranger from out of town. I will need to do a little more research on this to see how I could make her feel secure despite having a unsecured note.

In reading on BP I have found that getting traditional financing for the first 4 deals is easy, then you have to start getting creative. I have the capital and motivation for more than four deals so I feel like I want to make those initial 4 really count, larger loans on more expensive properties.

However, I have recently found a cheap property that I think would make a great buy and hold, very nice cash flow. The owner was recently widowed and does not want to run the rental herself. I don't think she has a plan for the money so owner financing might be a great win win situation.

My question. Will a owner financed property kind of fly under the radar as far as banks are concerned? Will I still be able to easily get traditional financing for an additional 4 properties? If not then owner financing wouldn't really help me unless she was willing to do a very small down payment.

Thanks BP members. Being able to get answers like this is amazing for a new investor.

Awesome job. I'm sure the new buyer is going to be happy with it.

There's not enough info here. Do you know the town to say if it is a decent area and what rents are? If you are going off what Zillow thinks rent should be, don't. You can get in an occupied house, the tenant just needs notice. If they truly will not let you in then the deal is off, something is being hidden. If it is out of town you could pay for an appraisal, $300-400. When something is too good to be true you kind of have to see it with your own eyes.

I know you don't like the idea of property management but if you start now and have them run one of your properties, perhaps you could find somebody you trust over the next year or two while you are still in town.
You could do a cash out refinance to use that cash for stock investing if there's some reason you are really hot to get into that avenue of investing.
I just sold all my stock to put into real estate so my mind naturally goes towards how to keep the real estate investment.

As above, you will not be able to refinance for 6-12 months on a cash out refinance depending on the bank. When you do, you will be able to get most of your money out. 75% of 200k = 150k. Congradulations, you just scored a 200k property for 8k out of pocket, that's awesome. Will it cash flow while paying a 150k mortgage + expenses? If you lived in it you could pull 80% out of it.