All Forum Posts by: Mel Sims

Hello Investors-

When you are analyzing a deal, do you use the 1% rule? If so, do you add the other costs into that rent amount?

For example, if I purchase house for $150k, the 1% rule would be to have the rent at $1,500. In addition to that $1500, do you add other costs into that rent, or do you just set the rent to that 1%? 

I've been engrossed with so much reading, podcasts, and forums, that I don't really notice people mention the 1% rule when determining the rent amount. 

Just trying to understand at what circumstance would you apply the1% rule and if any additional factors get calculated in that rent amount.

Thanks,

Mel

@Gilberto Fuentes I did the same, and ended up maxing out multiple credit cards to pay for the program. I regret it. My advice to you....don’t do it. Just learn from the ppl on here and on YouTube. It’s the same info, if not better. Best of luck to you

@Nick Riccio In short, I’m just trying to find a way to get capital to use to put down 20% on a buy & hold if I don’t have the money saved up yet.

@David Kelly Would you suggest another alternative for me to get capital to use for 20% down? I know hard money lenders wouldn’t want to work with someone with no experience starting off.

@Simon W. Hmm, I didn't think about appreciation. I wanted to resell it quickly because I couldn't do two mortgages at the same time (my primary residence with FHA, and this conventional). I was just looking for a quick way to earn capital to invest for a 20% down.

Hi,

I have a date set in mind to buy my first property to start my investment portfolio, but here’s the thing:

I plan on buying my first home with FHA within the next few months. I know I cannot have more than one FHA loan in my name at a time. I also know that when buying investment properties, I will need to use a Conventional loan with 20% down. However, outside of my 401k, I already know that I do not have enough money to put down 20%. I do not want to cash out my 401k for 20% down.

My question is this: Would it make sense, or is it possible to buy a house with a Conventional 3% down and turn right around to resell it...use that cash from the resale to put down the 20% on the next property that I will buy & hold...and just go from there to begin my portfolio?

Thanks!

Thank you all for breaking it down for me. I really appreciate it !

Hello! I just started back studying/reading about real estate investing, and the term "all cash offer" has me a bit confused. 

When someone has an "all cash offer" for an investment property, I know it's not really "green cash," but is it in the sense that an investor is paying for a property in full from the proof of funds in their account? Or is "all cash" just another term or scenario of how it's being financed? If it is indeed the money being used from the investors proof of funds, where, normally, does that money come from if they're just starting out in investing? 

I hope this makes sense...

Thanks!

On average, how long does it normally take to have a tenant occupy your property after you’ve purchased it? I’m an agent, and thinking of possibly buying my own townhouse listing.