All Forum Posts by: Mike Lindsey

I'm by no means a man of means. I currently live in a manufactured home, but it's paid off. My only debt is my vehicle which still has a few years to pay off. My job is at the bottom end of what is considered a middle class annual income. That being said I have my 401k which I contribute to monthly that will provide a sufficient retirement decades from now. I also have about $15,000 saved and have about $900 after expenses each month. It's just me and I don't really do anything as far as entertainment so the $900 is solid. Also get money through bonuses annually which averages to around $400 a month. 

I realize this seems like bottom of the barrel scraping by but I figured I might as well make the money work out for me. My plan is to buy and rent it out, but I want it to be something I can afford to pay on my own month to month just for worse case scenario. I was figuring I could afford a 30 year mortgage on a $140,000 home in Texas. I figured with the $900 that would cover mortgage, PMI, dues, and property taxes.

Thing is, when I bought my current home my parents and grandmother helped me with all of the actual paperwork, closing, finding the home etc. All I did was pay the money until I paid it off on a 15 year. So I honestly have no idea how to go about looking for a good deal, what costs to factor in, how to calculate potential cash flow and if I am setting myself up for failure, or anything that is necessary to be successful in this small project. 

Was hoping some here might point me to some good articles or books that would help me to be better informed. Figured it would be far more ideal than just assuming I know what I am doing and getting myself in over my head.

Thank you in advance for any help!

Sweet, thanks for the heads up. I'll check it out.

Hmmm. That's disappointing. I mean, I can pay the 20%, but I'd much rather pay lower. If things work out I'd love to try to do another property in a year or so, maybe find one at a discount I could have fixed up with the saved cash. Thank you for sharing. 

Hello. I recently paid off my home. I've been contemplating buying a new property that I could rent out. I have no plans of living there at any part of the process which, if I understand correctly, would disqualify me from an FHA loan and have to use a conventional mortgage loan which I've never done.

My question is, are conventional mortgages a set 20% down or is one able to get low down payments the same as an FHA loan to keep more cash on hand? I'm a complete noob and I'm sure this is basic knowledge, so I appreciate the help. Thank you in advance.

Thank you for the heads up..

Wow, those were some very good points to consider. I see that a lot more factors add into the equation then just face value. I appreciate all of your feedback. Thank you very much.

I know that here in Texas when buying a piece of real estate one is required to put down about $500-$1000 in earnest money as a sign of good faith in buying a piece of property. But I remember a post I read on flipping paper to raise capital that you put down about $5000 for a deposit and have the contract made assignable to whoever you wanted so you could flip it for a small %. Could anyone please clarify? As always any feedback is greatly appreciated.

Agent007,

Please know that those infomercials are suited to draw the average person into buying the courses, but a majority of the time when they receive the actual package it is so complex that the person gives up. My advice to you is to obtain the website of your local public library, whether by calling them or running their name on a search engine, and search the keyword "real estate". You will find hundreds of books in there which are not even on their shelves which you can have shipped to them for your checkout. Read them and learn. Join your local Real Estate Investment Club (although I am a bit hypocritical on this point as I have not yet joined mine, but will soon) and just try to follow along as best as possible even if you do not understand it all. You are who you hang around with and hanging around like minded individuals I believe will keep you motivated to press on in this industry. I read a wonderful quote today which I will end my post to you with:

"I believe life is constantly testing us for our level of commitment, and life's greatest rewards are reserved for those who demonstrate a never-ending commitment to act until they achieve. This level of resolve can move mountains, but it must be constant and consistent. As simplistic as this may sound, it is still the common denominator separating those who live their dreams from those who live in regret."

-Anthony Robbins-

My question is based on the scenario that you are taking out a mortgage to buy the property so as to leverage your money. When flipping houses in short time periods do you believe it is better to contract the services (i.e. painting, landscaping, and minor improvements on the scenario that the house was only needing minor cosmetic improvement and you were able to get it at an undervalued price) to get the job done quicker and more professionally so as to have it back on the market quicker which in turn will shorten the months in which you will pay the mortgage payments on the house, or is it better or equal to do the actual jobs yourself? Any feedback is greatly appreciated as always as well as any feedback on my idealism. Thank you very much in advance.

I am looking for a cheap acre of land around the Houston area with utilities included for sale. Any idea of a good site where I could find this at or any ideas on the easiest way to proceed.