All Forum Posts by: Nicholas Middleton

are there any new thoughts on this topic from the recent news about the tax plan?

Yeah that is a good point Jody Newman and one that I am carefully considering. The only upside of housing him would be that his rental payment would be the same as the amount I would owe him each month (if that makes sense, as I read it it is a little confusing). In my thinking it would be lowering the purchase price for a later date when I refinance the property and I wouldn't have to use capital right away for rehab work. Also, I was thinking he might go for that option, which is a better option for me as well. win-win..... i think. 

Lately, I have been trying to make my first deal, hopefully by the end of the year. I want to send this out into the forum to see what others think. 

I met someone at Jury Duty and when we started talking I let him know that I am an aspiring REI. I tell this to everyone I meet hoping that some opportunity will come of it. The more I spoke with this man the more he disclosed. Here is his situation:

His parents died and left him the house. He is 58 with no job or income, only a couple friends who give him some money to live in his basement. He is behind on his taxes and utilities and his house needs many repairs and updates. It is in a B+ to A neighborhood where other homes like his are selling for around 250-260K. His biggest problems are, even though he has full equity, he cannot pull any money out of the house, he has no money to fix the house, and no proof of income for a new place to live once he sells the house. 

My biggest problem- low amount of capital because I am just beginning.

I want to make an offer on the property but it will have to solve both our problems. Here is what I have come up with:

Option 1 80K cash and he can continue to live in the property for a year but his renters will pay me.

Option 2 130 Owner financing - interest only payments for five years with balloon and he will be able to live in the property for a year but his renters pay me. 

Option 3 same as above but principal and interest payments will begin immediately, he continues to stay in the home but pays rent for the amount the principal and interest payments are for as long as he wishes to live there. His renters rent will come to me.

Option 4 150 conventional financing but he must leave the property right away so that I can put the property into service.

Please let me know your thoughts about this and how would you write an offer on this property?

Please wish me luck! I'm getting to the first home run deal!!!

Here is a scenario that I would like to hear what you all have to say about. 

I am saving cash so that when the right investment property opportunity comes along I can jump on it quickly. 

I also have some personal expenses in my life totaling over 11k that will need to be addressed soon.

How could I pay for these expenses without lowering my net worth nor hurting my DTI?

Are there strategies that you have done, or know of, that can shuffle money around (legally of course) so that I still have the opportunity to purchase investments as they come around?

Any retirement tips or tricks?

Thanks in advance.

Cheers!

Nick

I am looking into the Toledo market to begin building my portfolio. Does anyone have any suggestions and/or advice about this market?

I will be purchasing from out of state (Michigan) so does anyone know a property management company in Toledo that you have worked with and are happy with?

Thanks so much!