All Forum Posts by: Tommy B.

Thanks David, looking forward to speaking with you. 

Hello all, I finally pulled the trigger and bought a foreclosure a couple months ago and it is nearly ready for market. There were a few issues to address and I'm doing most of the work myself to keep costs down. We decided to replace the original single pane windows from 1978 since the previous owner decided to upgrade to central air and keep the inefficient windows. Aside from that, the biggest time sink has been wallpaper removal... they certainly loved their wallpaper! :) 

Anyway, I am a couple weeks away from being ready to list the property so now the real work begins. Does anyone have a solid NM lease they can share? I see the BP hasn't provided one for NM yet and I'd like to keep costs down here as well! Thanks for any information. 

Also, any plans from BP to provide a NM lease soon? 

Rent.

Things are starting to happen. I am prequalified through three lenders right now. I start working with my realtor next Thursday. We're going to look at 4-5 homepath properties located within 20 minutes of my house. I'm thinking I'll probably stick to homepath for my first property since they only require 10% down. Once I build up a little more capital then I can explore more options for my second property, which I hope to have before the end of 2014.

The rental analysis numbers look pretty decent to me @ $80K with 20% down and renting @ $990= ! 12-13% ROI in the first year. The 50% rule results in $123 per month cash flow.

I'm meeting a realtor for coffee in a half hour to discuss my plans and ask questions- his offer. I'll mention this property to get his opinion.

I have a local neighborhood about 20 minutes from my house that took a big hit on property values. I've been checking it out on Zillow and Trulia and found a house that appears to be lived in and priced about $15K-$20K below the other houses for sale in the neighborhood. It has been listed since Aug of 2012 and started @ $118K and is now down into the mid $80s. The value peaked @ $130K before the crash. It looks like rents average about $950 a month according to rentometer.com. I drove through the neighborhood a couple of times and took note of all the rental signs. I searched them and they are being offered for anywhere from $1000-$1,150 per month, which is higher than my research indicates.

The neighborhood is actually very nice, with plenty of parks and schools nearby. The interesting thing is that it is located in the future downtown development. The city wants the area to be the new center of town. It has a new hospital, a new corporate office for a major National company, and a few other big developments so there seems to be ample employment and all the ingredients for growth. I think I can pick this house up for ~$80K and rent it for $900- $1000 per month.

I'm trying to poke holes in this, but I can't.

David Beard- Always thought provoking. Thanks again!

Chris Martin- The Rich Dad, Poor Dad comparison struck me as well. LOL

In all fairness, this one is on me. I overreacted. She is a good realtor with a lot of experience. Once I have a better idea of where I want this to go and get myself a little more organized then she will probably appreciate the direction I go and the business it can bring to her. I've had a ton on my mind lately and I forgot the details of our initial conversation in the weeks since it took place. Once I realized her motive for sending his info then it made more sense. I shouldn't have started this thread, but I do appreciate everyone's time in responding. There is a lesson in all of this.

You're right. I'm not sure why I had that initial reaction, but I will learn from it.

J Scott- She replied and said she recommended him for me to learn more about the option of using my 401K to invest from. I don't know, maybe I'm just sensitive, but she could have included that info with the referal. LOL
To your point, the initial phone call to her was to express an interest in rental properties, which may have been a little premature on my part. We haven't discussed financials too much other than capital on hand and possibly tapping equity or 401K for additional capital if needed.
As it turns out, she was probably following up on that phone call, albeit weeks later.