All Forum Posts by: Johnnie Fair

Thanks Greg H. And Mark Scuderi

Shaun Patterson that’s an excellent point. My wife and I are really thinking long and hard about this and those are parts of the equation. I think the 30 year note strategy is a bit risky myself as the longer you keep the more likely that those issues will pop up. Not to mention that overall you’re paying more for the home.

Mason DeJarnett where do you get your 8-12 percent numbers at? I get the percentage games but I’ve never personally met anyone that made money on their rentals or paid them off long term. I know they exist but I don’t know if them. For a thirty year mortgage I’ll pay 56k in interest, for a 15 year mortgage I’ll pay 26k in interest. In my mind I’m thinking in ten years that interest will be somewhere around 17k. If I pay it off within ten years will the 2400k i put in yearly 24k over the lifetime of the loan yield me more then 39k(30 year interest - 10 year interest)? If I pay it off in 5 years the interest paid will be around 9k, again I’m thinking will the additional 600 a month 35k over five years yield me more then 47k? What worries me is all of the debt acquired over a 30 year period. I’d love to hear how you work around those numbers if you could reply.

Won a hud listing and had an inspection. There is a giant tree around a ton of electrical wires which will cost a bunch to replace. It has a 2 prong wiring but it’s been rigged with 3 prong outlets with a fuse box. Asbestos siding needs to be replaced in a small area. There’s some wood rot and a few other cosmetic issues. Are these things I can ask my agent to renegotiate with hud? I’m thinking of bumping it down by 6-7k. It’s 11k under county appraisal as of now. Please give me your thoughts, thanks.

Looking for an income stream in ten years with less risk. Pay this one off in a year to year and half. Find another 80-100k home in the meantime or right after we pay it off and fix it up as needed and rent it out. We aren’t going to leave until after the year. Thanks brrrr?

My wife and I recently purchased a hud home for 80k in San Antonio. We intend on living in the property and paying it off in a year and half. We want to live there for at least a year before trying to find another property of equivalent value around the 80-120k price range and rent one or the other out. I think we can continue this blueprint and obtain 4-5 properties over the next 4-6 years. Accelerating each payoff period with the increased funds. Does anyone have any experience with something like this or is it a a foolish plan? The homes in the 80k area aren’t exactly desirable but they rent for 1100-1300 on the same street. Thanks in advance.

I bought a short sale for 315 in a 500k area, the home has not been painted before, the home should be painted but I want to keep the entire budget for the flip below 10k. I don't want to buy cheap paint but I don't want to buy the $60 dollars a gallon stuff either. I've looked at Craigslist and found paint but its a set color and I don't want to do that either. Anyone have any tips for where to find good paint at close out prices? One other note I am aware that lowes, Home Depot, and sherwin Williams do have paint returns that they sell cheap.