All Forum Posts by: Nathan Eiland

Thank you for responding Joe  and, thank you for pointing out that I was using the pronoun "I" instead of "one".   Fraud is definitely a large down side!  I guess I should make this post a bit more clear.  I am posing this hypothetical question for the purpose of education and understanding.  I am not insinuating that anyone commit fraud, nor do I plan to.  So... in this hypothetical situation I will point out that the owner did not lie and should not lie to get a dif. Mortgage.  They simply changed their minds at a later date after the loan was already done.  In the biggerpockets podcast Brandon mentions that you can house hack and if you don't like it you can always move out. He says there is no rule that says you have to stay.  So, is there a rule that say you can't move back at a later date?  Or, would one have to make it aware to the lender that they are doing so?  Another sinario would be that of a couple who is separating.  They buy a second property for one to live in only to decide later that they want to live together again.  Would that second property even qualify for that lower interest loan?

also to clear up the house hack part of it. The second property would be a duplex. Or some kind of house hackable property. 

I was thinking about this idea and wondering If there is a way to Hack without actually living at the property.  Let's say, you say you will be living at the property but, a month or two in you decide never mind.  I like my other house (that's not rented yet).  You continue to live at the house you originally owned.  The loan has already gone through so you get the house hack + the rent for the space you would have lived. Is there any reason a person couldn't do this?  Up sides? Down sides?  Hope that make sense. Any thoughts are appreciated.

Hello all.  Looking at buying a rental.  Was going to evaluare 100 in 90 days idea.  I know there are different criteria that goes into whether or not someone does or does not buy.  That being understood, is there a printable form that anyone uses to baseline the process?  Im very green! This would be a first rental if found and purchased.  Thanks.

ok, yes i used the bigger pockets calculator 3.5 at 4% and added 1.25 for the prop tax and .35 for ins. and got something in the 18 hundred range. Thank you for the links and quote.

Yes the 15% was capital gains and my thought was that if he was going to lose that money anyway then i wasn't going to add it into my side of the deal when i offer him to seller finance. The thought was that i would save the money he was going to loose and i would pay him a flat gain over time in return. The 8% was a one time flat that i rounded to $20,000. I def. wouldn't give someone 8% compounded over 15 years when the bank offers 3.5 - 4.5 ish... ouch. that would be double what i should pay. My thought was, he would continue to get paid without the overhead of being the landlord and make more money on his money so why not right? im starting to see that the bank would make a lot more money then a $20,000 flat so why would he tie up that money for such a small return? I guess that's really only $1000 a year. So, what would be an acceptable amount to offer?

It sounds like your telling me that the 15% capital gains tax is not a factor. (i would def. like some more info on ways to get around this for future knowledge) That being to case, i would only want to use seller financing to get a better deal for myself then using the bank. It would seem to me that the seller would be willing to give a better deal then the bank because they are making more money on there money then just selling. Wouldn't the seller have to because if not then people would just use the bank.

Maybe I'm trying to be too creative but i want to offer him less then i would have to pay the bank knowing that he will make more money over all as well. Using that calculator link $300,000 over 20 year at 4.5% is $1897.95 a month(before prop tax and ins) x 240 is $455,508. The bank would make $155.508 on $300,000. Would it make sense to offer him less... maybe $72,000 over 20 years. That would be $380,000 guaranteed with no overhead and little risk. He makes more, I pay less... is my thought process off on this. would this be a Bad investment on my part?

Maybe I'm not giving my landlord enough credit. Do you own properties like there's? If so, are you saying it would not be smart for him to take a flat amount on his money or that you wouldn't?

Sorry if some of this in not making sense. like i said before I'm very new at this.

also how do you do @"Name" think so it notifies people they are being responded to?

Hello everyone. I am very new to investing an have not bought any property as of yet. I would like to get some feedback on an idea. I currently live in the front house of a property that has a detached rental in the back. I will be buying something for personal living soon and though i might ask my landlord if he would consider selling. So... here are my questionssss

-I looked the property up on find comps now and it says its a 3/2 1,103 sqft. but, i live in a 2/1 (not sure how to determine the sqft. If i plug in the back house to on comps (also a 2/1) it comes up as the same property 3/2 1,103. so, my question is am i getting a real property value? does that affect the property value Positive or Negative and if i bought the lot would i run into any legal problems renting the back house "IF" it technically doesn't exists? I have been living here for 5 years now and know that the back lot has been rented to 3 dif. people.

-the property is in So Cal and is valued at 308,000 on an FHA with 3.5% down, after tax and insurance, what would a realistic payment be? $1800 or would it be more like $1500.

It is my understanding that when a person sells a property they pay 15% on the income. Is this true? in that case he would have to pay $45,000 in taxes. If he payed closing cost maybe another $9,000. If I'm off the mark on this please let me know but in my head I'm thinking $308,000 - $54,000 = $254,000. What if i asked him to owner/seller finance? If i offered him $255,000 ($10,000 down) plus a flat 8% on his money over 15 years. $245,000 x 8% would be $264,600 so call it $265,000/ 180 months is $1,472. Am i right by thinking that he would make an extra $21,000 this way and he still gets the profit in appreciation. he also gets to keep getting a check without any of the renter risks of vacancy etc. Plus he would get $10,000 now!

I already pay $1,075 so my payment would only go up $400 a month when the back lot is vacant. It rents for about $1000 a month and already has a good tenant so, really i would be saving $603 a month. When i leave i could rent the front lot for around $1300 or $1400. Making it $2400 in with a payment of $1472. Doesn't quite fit into the 50% rule but it seems a hell of a lot better then dumping $1075 into someone else mortgage every month. If i could get him to do it over 20 years it would be 1,104 payment and would fit 50% rule but I'm not sure that would entice him enough to sell. Guess it wouldn't hurt to start there and settle for the latter. Oh... he bought the lot back in 02 i think for about $117,000. i have no idea if he owns if free and clear or not. I would need to do some more research on that. He does own several other properties including the triplex next to us.

This seems like a win, win to me. He makes more money over all and reduces risk. I get my feet wet, save some money & start my investing lifestyle. Does this seem like a good deal to everyone else? Any thoughts, concerns, ideas would be greatly appreciated. Any property owners out there that can put themselves in his shoes and let me know from his perspective if you would except an offer like this. remembering that if he doesn't want to sell i will be buying something soon and moving out so the space will be vacant and cost some money to get ready for next renter even though we have kept the place fantastic and clean as if it where our own.

Thanks

thanks everyone for the welcome and info. i will be sure to look into those podcast and local groups. thanks for the links aswell paul.

new to the site and investing want to learn more about real estate investing. im motivated to make money and would love any free advice and or mentoring anyone might be willing to give.