All Forum Posts by: Matthew Dovner

sounds sketchy to me!

Thanks Brandon!

Great advice Brett. Thanks

Brett,

Thanks for the advice. What you said leads me to believe that most guys when analyzing these rental deals, factor in some money down. Obviously If i am only financing 360k then the deal looks a lot better than at 450k. I am trying to understand how to analyze the deal properly. I think if I base the mortgage payment on the whole amount being financed then add in the 50% rule, Ill never get a rental. Would love to hear your thoughts.

Absolutely! I've learned so much already. Sending out my first mailers to absentee owners with lots of equity. 1000 pieces so we will see how many good prospects that brings me.

Ok so I have been doing a lot of reading on rentals and I know the 50% rule is the standard rule to go by when analyzing these deals. I have a potential deal on a 2 family house for 375k but needs about 60-80k to bring it back to its glory. So ill be in it for 450k. I can get 1600.00 per unit for 3200.00 total. According to the 50% rule this is not a good deal because 1600.00 is my NOI and the mortgage if I get 100% financing is probably around 2200.00. The thing is, the house is worth 525k or more after being fixed up so I am not really understanding the math. I could flip it but I am trying to build up some rentals for the long term.

What I am confused about is, when you guys are analyzing these deals are you doing that with the expectation of 100% financing? Or are you putting money down? If you are putting money down, are you putting down a certain percentage? I appreciate the advice!

Jon,

I don't yet but thats the plan for sure. Right now I am doing it in addition to my day job. I've made some good money but have gone thru a realtor in finding every property i've gotten so far and I wan't to start a direct mail campaign in hopes for better deals and more profits!

Hey guys! My name is Matt and I'm very exited to be part of this board. I've been flipping houses now for about 2 years and have learned some valuable lessons for sure. I'm amazed at how much there is to learn about making money with real estate. Looking forward to gaining knowledge as the weeks go by.

Matt