All Forum Posts by: Michelle Reid

I find it never pays to prognosticate.  

As an investor in 2008, I've learned to hope for the best, prepare for the worst.

Rents CAN go down.  Property values will definitely go down at some point during your ownership.

In 2009.  We went from 80 inquiries for vacancies to 2.  I still don't know where they went.  Doesn't matter.  All I know is they went.

Don't over leverage.  Don't over pay.  Be sure to have resources to cover 3 - 6 months vacancy.  Depending on your comfort level.

Otherwise, the consequences could be bankruptcy.  Especially if you have several properties that may go vacant and simultaneously have equity go negative.  That is a deadly combination.  Ask anyone who's lived through it.

If you can have cash or credit available during a correction, even better.  Take advantage of the dip.

Cover those items and you will not need to worry about where the market is going.  

@Alexander Stevens welcome from another "mature" Tampa new investor.  

@Kerry Baird thank you. We are looking to scale.

I feel it is so risky with rising rates to do I interest only. My product has a 15 year payment.

Will a bank do an equity loan AND a line on the same property?

15 year repayment term

On a 415k purchase of SFR.

I'll be using $30k cash and $53k equity line on my primary home.  

The line is 1.99% for 1 year and prime + 0 thereafter.

Interest only for 15 years is an option.  I would not use that option.

Would you amortize over 15 years which makes the payment much higher, or use 20-30 years hoping I can refi at some point.  Would that be too risky?

I'm using a 5% interest rate assuming prime will be there soon.  Difficult to plan long term on the rate.  

Am I missing anything?

Thanks for any help and insight!

Great flip!  Do you have before and after photos?

@Chris Duffy as @Khaled Morad mentioned, there may be duplication with what their agent and property manager would be doing for them.  As an OOS myself, I would find value in having an additional point of contact during the rehab.

@Chris Duffy I believe there is a market for this depending on your pricing.

I'm just not sure where equilibrium lies between how much you'd need to charge to make it worth your time and what the investor is willing to pay.

How would you structure your pricing.?

@Kristina Kuba that is a good point.  We have not settled on an agent yet, it's difficult to tell if their contacts will work for us before we begin working with them.  I also hate to waste anyone's time.

@Raymond J. Rodrigues I will reach out. Thank you.