All Forum Posts by: Kyle Penland

That quick flip can turn into a disaster QUICK! If you don't have the funds there for an emergency and find out your flip is in worse shape than you thought you will be stuck between a rock and a hard place. Pay your bills, and fix your credit and you'll have a much easier road.

@Alexander Merritt Thats Great Feedback!  Thanks!!

@Jack Slattery Since I am brand new to the buy and hold arena... can you share some insight as to why?  Just trying to learn as much as I can before going into it versus learning on the back end.

Yes...I don't think there is much room to appreciate there.  These figures I have are also based off of 100% financing as well so all I am out are the closing costs.

Hi everyone,

Thought I would throw this out and see what everyone thinks...  I have interest in a duplex, its been vacant for about 8-12 months, I can't tell and the owner won't tell me.  She got it quit claim deed 4 months ago.  Asking price is 46k.  I have spoken to a local PM who also happens to be my neighbor...I think he would steer me pretty straight and another Realtor and both think I can get 950-1000 per month in total rent.  It doesn't need any cosmetic rehab.  Insurance will be 550.00 and taxes 1453.00...I have figured that I will be making 80 bucks a door which is think is great for my first property (figuring 10% vacancy, 10% PM, and 10% maintenance, luckily for me I have great financing pre-approved due to good credit and a great relationship with the bank).  This property sold in 2000 for 60k.  Its in decent shape, but I don't have a clue as to the maintenance issues that will come up.  I wanted it for less than 46k to save for the potential busted pipes, water heater not working, hvac dead etc...  But she won't budge.  I offered 42 and she flat out said no.  Any advice you can give me?  Should I give her the 46 and ask for some closing costs?  Or a maintenance budget, or have her turn everything on and then inspect it?  Just wanted to see what your thoughts are...If everything is fine, then this is a SUPER deal, but just wanted to get others thoughts and experiences.

Peter,

Thanks for the warm welcome and tips!  I'll make sure I make the most of those.  I thought I would have some equity to pull but I am shocked that i cannot pull from that...I called a buddy of mine in the banking industry and he told me I could pull about 9-10k...Learn something new everyday.

The location of the two single family homes is a 50/50 type area...There are some good parts and some bad parts...they are near the Uni of Memphis so that zip code seems to hold its value pretty well.  Both of the homes have long term tenants, 1 being there three years and the other being there 7 years.  Not sure of the conditions...Realtors have them posted for sale and the only way to view the inside is to have an offer down contingent on an inside view.  I have seen the outside of both...Peered through the winders...1 of the homes appears to be inhabited by a hoarder.  I personally think there are positives and negatives to hoarders...They have so much stuff, its a pain to move so they are fairly likely to stay with an increase in rent...But their hoards of stuff also cover up potential problems that won't be able to be in view during an inspection.  The 4 plex is completely rehabbed...new electrical, plumbing, and a total interior top to bottom.  Seems solid shape...However, its not in the best area of town...i most likely would not collect my own rent from this property.

Hi everyone!  I am new here and stumbled upon the site and really liked what I saw.  I have began listening to the podcasts as well as reading through the forums to soak up as much knowledge as I can get.  So with that, Thank You all first and foremost for being so engaging with your conversations.

I have done 4 rehabs in the past 3 of the 4 successful.  All 4 I guess could be considered successful since I haven't really lost money!  I'm starting a new phase of my life and moving in the direction of buy and hold.  I don't have the time to flip a property and like the buy and hold strategy that seems if all goes well to provide a nice living for some.

I've come across several properties that are really good in regards to cash flow.  Property 1 is listed at 89,900 with 1600 monthly coming in.  Its a 4 plex and sec 8 and all 4 are rented.  Its listed by a property company that rehabs property fills it up and sells for a profit and then manages your property.  He is also willing to hold a note with 70% down.  my bank will loan me 85% on the property so seems like a no brainer right?  What would be the down sides to this?

Also the other property I have come across is listed for 24,500 with 400 monthly coming in from a long term tenant, and 29,900 with 595 monthly from a long term tenant.  Both seem solid properties...

Which Would you go for?

Also another question I have is my home appraised for 350k, and I owe 270k...Can I use that equity to purchase these?

Thanks everyone and have a great weekend!

Kyle