All Forum Posts by: Marty Gold

As I understand it, a purchase price can be as much as 2% over the appraisal value. And I've heard that some people make an offer higher than asking price with the understanding that the seller will, to reciprocate that higher offer, pay some/all of the closing costs.

This basically lets the buyer free up some cash and technically finance the closing costs.

Has anyone done this before? Is it a smart strategy?

Thanks

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Would anyone be able to please direct me through the math so I can evaluate if buying points on a mortgage for an investment property is or isn't a good idea?

I've heard buying points on the loan is a tax deduction, is this true?

Thank you

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Originally posted by @Steven Stokes:

@Marty Gold oh sorry I should have explained. For most people, it means Travel and Entertainment.

Ty. I'm a newbie

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Originally posted by @Steven Stokes:

@Marty Gold If you want to be detailed anything you spend on the rental should be expensed. For example, marketing, T&E, office expense.

Thank you.

What is T&E?

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I want to make an excel spreadsheet to help me compare properties. I know BP offers a calculator but I like using excel.

So far I'm factoring in:

Purchase price, mortgage, closing costs, rehab, taxes.

Also utilities like Electric, Water, Garbage, insurance, other ecepenses, including vacancy & CapEx.

And of course, income.

What am I missing (most importantly on the expenses side) that I need to consider when deciding if a deal is a good rental purchase or not?

Thank you.

1 Vote

Originally posted by @David Dachtera:

@Marty Gold,

Zillow is pretty good about pulling up recent sales. It is, however, dependent upon what it can glean from the public records.

Thank you

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Originally posted by @David Dachtera:

@Marty Gold,

When comps are scarce, you can sometimes take the available recent sales

Can you suggest any county offices which may have sale information which I can access? Or do I find sale info on places like zillow? Thank you

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Originally posted by @Christine Kankowski:

I do agree that most houses in 2005 lost value for several years after and are now regaining most of that value back, but maybe not 50% more.

This was my main concern too, as it sounds not just a little high, but a lot High. The local buyers might agree with me as it's been on the market for 5 months ....oddly no price reduction has taken place yet.

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Originally posted by @Michael Seeker:

@Marty Gold -

It sounds like you're actually interested in the market value of a property (not the listing price).

http://birminghamappraisalblog.com/appraisal/what-does-the-appraiser-do-when-there-are-no-comps/

https://www.zillow.com/advice-thread/How-do-you-accurately-appraise-a-house-that-literally-has-no-comparables-available/377581/

https://www.biggerpockets.com/forums/88/topics/164916-how-do-you-determine-the-value-on-a-duplex-with-no-comps

Yes I think I'm searching for that market value. Thank you for the links

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All Forum Posts by: Marty Gold

Marty Gold has started 17 posts and replied 59 times.

Post: Do you asks seller to pay closing costs?

Post: Do you asks seller to pay closing costs?

Post: Should I buy points?

Post: What expenses should I factor in for a rental purchase?

Post: What expenses should I factor in for a rental purchase?

Post: What expenses should I factor in for a rental purchase?

Post: What, other than Comps, is used to price a home?

Post: What, other than Comps, is used to price a home?

Post: What, other than Comps, is used to price a home?

Post: What, other than Comps, is used to price a home?