All Forum Posts by: Michael C.

I have been identifying properties that I can purchase with little money down by assuming the current loan.  Multiple markets not just Denver. 
The benefit is a small down payment to secure the property and assuming the current loan with a much lower than market rate. 
The problem is the sales price is still pretty much market price and the monthly payments are within a few hundred dollars of the rental price. I am looking at mostly turn key newer builds that have sold within the last year or two that loan balance is at market price with the dip we are in. More or less I am able to buy at a 2021 price and terms.

Does it make sense to purchase a property with little money down if it just breaks even or possibly might incur a small loss if counting management/capex/repairs? 

example $10-15k to take over a $350k loan. Payment $1900. Rent $2150.  

If thinking long term I think it makes sense as rents increase.  Market may also keep going down for a bit which is worrisome. 
Please let me know your thoughts and poke holes in my idea. 

You have found the current problem in the market. 

Mortgages are higher than rents. Prices have to come way down to match comparable rental prices. 
Sellers are still up in the clouds holding onto last year, month, week prices. We are not in that market anymore and it’s going down every day. 

Work your numbers and make an offer that cash flows.

If you believe in your pricing, whole sale it. But you may find other investors also do not want it because the market is upside down.

$6000 month rent would be more in line with $1million property value, not $400k. Not sure what kind of comps your looking at. 

Gas company will just come and lock your meter out if they find out your system leaks and won’t turn it back on until you have it certified/inspected. 
Everything past the meter is your problem not gas company. They will happily shut it down if you tell them it’s broken unsafe or leaking. 

Yes sounds like it leaks, hopefully the professional also told you that and is looking for the leak.

Also that much pressure is only for test purposes. The actual gas runs at about 0.25PSI, 1/4th of a psi. So low it’s hard to detect.

Short term capital gains. I.e. taxed at your normal income tax bracket. 

$20k + your other total income = what tax bracket you are in. Somewhere between 10-37%. 
google has the answers you are looking for. 

Are you going to change your leasing requirements because someone waves a check in your face? 
is that your question?
she will be looking for her next settlement from you.  

No. 
Primary residence usually has a 12 month requirement to live in it before you can rent it. If your lender would know or enforce it is up to them. 
Secondly, generally you would need 2 years of claimed taxable income for the rent for it to count towards income. Your DTI would not change, you would not be able to get approved for a mortgage.

You would have to rent until you can claim that income to lower DTI so you can buy again.

Everyone says it costs nothing… but who is the only person spending money? YOU the buyer. 
Your money pays both agents commission, it pays for everything.

Being commissioned based agents are inherently greedy, literally part of the job that they won’t admit to. 

benefits of using the listing broker- feeding the beast

-listing agent wants both sellers and buyers commission and will fight for your deal over other offers even at a lower price because they make more $$$.

If this is your first deal and you aren’t sure what you are doing or looking at it may be better to find an agent. 
if you are pretty familiar with the process it’s really no different who represents you as long as you can stand your ground and represent yourself if needed. 
I purchased a house using the listing agent as my buyers agent, I made an offer that was lower than another competing offer and also negotiated 4% off the initial offer after inspection because I was prepared to walk away. (But I also knew realistically how much repairs cost and submitted contractor bids in my counter offer; representing myself)

I wouldn’t. All that just to loose $1700 a month and gain 2 room mates.  House hacking is about lowering your costs not raising them.

Go out of state or find a better property.

 I’m still working it but I ended up adding another gas and electric meter to make everything fully split. 3 meters. Permitted through city and added by xcel. 

I found a really good electrical/plumbing contractor that is handling everything for a reasonable price.