All Forum Posts by: Mike Warder

@Account Closed  Start your free education here... https://www.biggerpockets.com/files/user/brandonat...

For getting started I also like the book, Hold: How to Find, Buy, and Rent Houses for Wealth by Steve Chader. Then, start working your way through the podcasts, each of which has book recommendations toward the end. 

Angela Houchens I think if you post the specs we can help identify any immediate concerns to help you out. What is your purchase price? What is the after repair value? How much in renovations are needed, and what type of renovations does that include? What zip code is the property in? How long for renovation, and what are your holding costs? Post these numbers and you'll get more responses. Good luck!

I'm looking to acquire a buy and hold rental home that looks okay numbers wise if this garage repair isn't too outrageous. I've never dealt with siding/garages. Anyone care to give me a ballpark estimate/range? Supposedly, it was caused by a storm, but it is an REO property and the purchaser is on the hook for it. Sorry I don't have more details or a photo of the inside. All advice is welcome.

Thank you @Troy Gandee. The funny thing is that they sent me the 4% exemption paperwork after closing, which is what sparked my interest. Thankfully, when I ran the numbers before buying I was using the correct percentage. 

Thank you everyone for these great insights. I'll be able to sleep a little more peacefully at night. I've got enough cash to cover my bases, so I may just sit tight and wait for my l lender to reach out to me.

I purchased two rental properties in late 2016 in South Carolina and the paperwork for the mortgages listed my property tax rate at 4%, instead of the 6% investment property rate. As a result each month my lender is collecting from me escrow amounts less than what it needs to pay the property taxes.

Is this something I need to proactively correct? Is this the kind of thing where the state will contact the lender to correct? Should I just sit back and wait for someone to reach out to me? 

Subtract expenses for property taxes, insurance, vacancies, repairs, capex, mortgage, and property mgmt, if needed, from the monthly rent. If your rent won't cover those expenses and give you a little cash flow on top, you should look for other rentals. Use 5-10% for vacancies, repairs, and capex. If none of what I'm saying makes sense, stop and read the ultimate beginners guide on the website. Be persistent and don't waiver from this formula and you'll do okay. Good luck!

5% down on a $50k condo in 2006. 7 year ARM 3.8% at the beginning. I lived in it through law school, paying the mortgage with student loans. Not the smartest idea at the time, but it cash flows and has doubled in value since.

Putting aside the varying time horizons and risk threshholds we all have, I think you should lock in the current mortgage rates on fixed 30 year loans and hire a real estate-savvy CPA to work on your tax concerns. Seems like paying off one property, as you suggest in option #1, to eventually refinance it to buy another property is just chasing your tail. I too have a full-time job that I'm not leaving. It is because I'm staying in my current job that i'm okay with leveraging myself with multiple financed properties. Every once in a while I think about paying down my debt, but since I have a good steady income, I realize there is not much benefit numbers-wise to doing that. But, do whatever helps you sleep at night! 

Submit the offer. You're running a business, not a popularity contest. I'm putting an REO offer in tomorrow far below asking price. $160k ARV, Asking $137. With $50k in repairs necessary, I'm offering 80k. If they say no, I move on and look for another opportunity. I want it to work because of the time I've spent getting bids, etc, but it's not worth it if it puts me in the red.