All Forum Posts by: Randy Thaler

Rehab 702 (and of course, anyone else reading this): Are there methods you can recommend for finding REO properties, and/or agents who specialize in them?

Just wanted to jump in here with a question. Given everyone's experience with what is going on in different parts of the country, does it stand to reason that areas that are still quite affordable stand to do well in the future, and for the short term not experience much of a pullback? I'm speaking specifically of North Carolina (Research Triangle, Charlotte, etc.). My wife and I live in the Northeast and are considering relocating to NC. From what we've seen, homes there can be had for 30+% less than what we're seeing here. I'm quite new at this and would love to start acquiring some rental properties but prices around here have gotten somewhat out of control, so I would imagine that can make a positive cash flow quite difficult.

Just got back from BJs, where I saw a set of 6 DVDs called Dolf De Roos' Real Estate Investor's College. Has anyone seen this? Is there something to be learned from this guy, or are these things usually a waste of time and money? Thanks.

Dick,

Thanks much. You raise some valid issues I hadn't considered, such as the interest and depreciation write-off. I guess my accountant can tell me at what point a negative cash flow is no longer counterbalanced by the tax savings.

I'm not sure re-structuring the mortgage is an option because we got in a year ago at around 5.5% for 30 years...fixed. As for appreciation, I don't know what the rate had been up until this year, however, things are moving very slowly now, probably because of the higher interest rates. Perhaps that will turn back around, although one never knows. I can tell you sellers in our neighborhood have been reducing their asking prices lately, so that's not a good thing. I'm getting the impression, from the responses I've received, that there's really no substitute for doing your homework, which I obviously didn't do a year ago when we bought this place.

Thanks again, everyone. I'm open to more discussion if anyone has something to add.

First of all, let me thank everyone for the thoughtful responses. Managing our current house from afar, if we do relocate, doesn't really concern me because we have friends who could do repairs on an as needed basis, and the house is relatively trouble-free. Of course, that can all change if I don't find the right renter, but that's a discussion for a later time.

As for the question Greg_home123 posted about how I'm determining value, I used Zillow.com, took the value they gave me, which represented about a $40,000 loss (a little less than 10%), and then added back some things of value, such as the lot, condition, etc. Basically, we made a hasty decision and overpaid on this house a year ago, at a time when a number of personal circumstances forced us to act more quickly than we would have liked. I'd be happy to get into more specifics on a private basis, but for various reasons, right now I'm a little squeamish about baring too muich of my soul on a public forum.

I suppose the biggest factors right now are what we'd be able to get for the house if we sold it, and what we'd be able to rent it for. I guess I really need to do some homework.

Just thought I'd post something to get some opinions from people more experienced than myself. My wife and I are thinking of relocating to another state. In the meantime, we purchased a house a year ago which, from what I can gather, is worth about $30-35,000 less than what we paid. I've been toying w/ the idea of eventually buying an investment property to hold as a rental. If we do relocate, would it make sense to just hold onto our current house and try to find a renter, then sell in a year or two, when the house has hopefully recovered some of its value?

If so, how do I go about determining how much I'd be able to get in rent for this place? I suppose the obvious goal would be to try and cover our monthly mortgage payment, and then some, but it's a pretty hefty monthly nut, and I don't know how easy it's going to be to cover it. We're talking well over $2500 per month. I don't feel I know enough about the rental game or the rental market around here to make an informed decision right now.

We have enough liquid cash to cover a down payment on another house, if we do move, and I suspect I could probably handle a little bit of a negative cash flow on the current house if I had to, but I'm just not sure that makes sense. Any suggestions? Thanks.