All Forum Posts by: Lawrence Cox III

I have been looking at the FHA 203K loan. Not sure if this is a good tool to buy and hold for investment properties, does anyone have any advice on using this option. I am currently looking at foreclosures in my area that I could by low and do enough to get it rent ready. I have been wondering if using a hard-money loan would be a better option? I have never used that type of option, can anyone give me any advice on how to get going. Thanks in advance for any and all advice.

@Chris 

@Chris T. 

Thanks, I didn't think about using CL. I think I will defiantly try that and see if it gets anyone's attention. I haven't had no luck with finding any other landlords in the area. I do not live there and it is about 5 to 6 hours away. All the realtors I have talked with says if I develop, that they would list for me. But no definite answer as to if there is any demand for rental for the area.  

Hello, I have a property in south Texas. It is a vacant lot that the wife and I have thought about making part of our investment portfolio. It is in a small town that does not seem to have very many rental properties. There is not a whole lot of jobs in that particular town, but there is jobs in the surrounding area. I have talked to a realtor in the area, but have had no luck with getting a good answer if there is any demand for rental in the area. So we have been hesitant about developing the property. How could I go about finding out if it would be a good place to develop?  I know we all would like to bet on a sure thing,  but defiantly can't afford any finical set backs on developing this property thinking "if I build it, they will come" and no one shows up. I have wondered if I should look into Section 8 housing in that area and see if they have any demands for any rentals for that area. Any suggestions would be appreciated. I am new to this and would love to develop this into my retirement portfolio. Please let me know if any additional information is needed, and feel free to ask me questions. Thanks is advance for your help.

Hello everyone,

I am seeking some advice on a property I own. I bought a a couple of lots which or side by side from my uncle estate a few years ago. It is in a small town in south Texas, which is about 6 hours from where I live. I have contacted a local realtor about originally renting the property out. My idea was to rent only the property and allow someone to put their own mobile home on there and collect rent and have no maintenance.  But I found out through the city council that they do not always allow mobile homes in the city anymore. I would have to get signatures from a two block radius from all the neighbors agreeing to letting the mobile home be placed there as well as city council approving it. A-lot of footwork. So my next thought is maybe building a efficiency apartment. I have been looking at some blueprints where people have built them themselves for an average cost of 10k-12k. I would be contracting the build out myself. I know little about the area. The realtor has told me that there is hardly no rental property in the area. But it may do good because it opens a new market for locals to live. So, what other questions do I need to be asking or what do I need to be researching? She is basically my only contact there, in fact after going through several other realtors, she was the only one that would help me so far. She has stated that between her and her broker that they have vendors or contacts to local contractors who could place bids on whatever I would like to build. Do I need to research other contractors as well?  Is this too big of a risk to test a market? Or should I think more on the thought that "if you build it, they will come"?   I appreciate all the advice you can give.

Thanks,

Lawrence Cox III

Thanks for the advice  Michael Ran. I have been reading your feed back over and over. I like the way you think. I guess for myself I started out wrong have gone through some struggles and now would like to move forward a little quicker. I do not want to get in over my head in alot of debt. I have been bankingy money in hopes of making another purchase. The problem there is keeping it where I can easily liqudate it when the time is right and not give it all to uncle Sam. I would like to fire my boss and be a full time investor.  Looking at the math with my current situation, I would like to think that this could be done in a couple of years or less. I guess that's my biggest goal. 

Thanks again

Lawrence Cox III

Hello everyone,

I will try and be brief.I am in the East Houston, TX area. I am 4 years into a fixed 30 year mortgage. I have a 5.875% APR with $107,500.00 left to pay. Original loan amount was 115k. Appraisal should be somewhere between 200k - 250k. Monthly Gross from rents is $3200.00 Net is $2000.00. i have a 4 plex, one mobile home I own, and one mobile home that I just rent a spot to on this property. I talked to a mortgage broker today and waiting to get an answer on rather or not Fannie Mae will do a refi since there is mobile homes on the property. The one trailer I own is free and clear no liens. The lien is just on the 4-plex. I asked about being able to use the equity should I want to later to purchase other property and it seems we would be in the same boat. If i do get approved for the refi I would be going to a fixed 15 year at 4.25% APR. I would cut 11years and around 80k off the interest. Would this be a good thing to do? Or Should I think about selling this place and do a 1032 and move on? Or my other option is to pay down the interest on this loan via extra payments towards the principal. I do not know if this information is needed or helpful, but i have about 15k in reserve or a emergency fund for the property. I do not have a lot of maintenance issues, just some improvements I would like to do. i have owned this property since 2001. This is the year it was built also. Let me know what other information is needed or any good advice. I feel like I am not getting anywhere so that I can expand. It seems more like a hobby that I would like to be my full time job instead. Just can not figure out what I am doing wrong.

Thanks in advance for any and all your thoughts, ideas, and soulutions.

Lawrence Cox III

 Thanks Cory Boren, I am looking into it right now. I do believe there is existing eater and sewer SD well as 5 meter boxes. I am looking for some comp's as well.

Hello, I am located in the east Houston, TX. I have found a property near me some one started developing for mobile home or RV use. They are asking $83,000.00. I still need to look at some comp's before making an offer. I should have no problem getting a loan to purchase. But how would I go about getting a loan to cover the development? Do I first worry about acquiring the property. And then getting another loan to finish the development?

Thanks in advance for your advice.

Lawrence Cox III

Hello, my question is about being debt free. As I have been getting my personal finances in order by being debt free and having a savings. I was wondering should I do the same with my investment properties? And does any do this now? What are the pro's & con's?

As always thanks in advance, all help is really appreciated.

Hello everyone, I had a investor contact me here recently about making a purchase on a property I own. He is wanting to know whether I want cash or to do owner financing. what cash I can take the money and run or take a chance in finance it and also collect interest. I think one of my other choices could be to do the owner financing and then to sell the note to somebody else. I am Not sure though what would be the best scenario and what kind of tax breaks I could get for either of the different scenarios. I have only done an owner financing once in that was to a tenant already living on the property that was always current on his rent. if I decide to do this owner financing how can i screen this guy to check his credit score and anything else that I would need to know before doing an owner financing should I ask for help with a local title company on this process. thanks in advance to any response to this all advice is  appreciated.