All Forum Posts by: Nigel Ford

@Nghi Le

Im in a similar situation as Kevin, and my goal now is to buy a pretty much ready to rent SFR with a 15% down conventional loan. I was thinking; with a deal like this I know im pretty much putting all my money in to get it. If I do a brrrr SFR instead, the worst case scenario would be to leave all my money in the deal would it not? Im just not comfortable doing the the rehab project on my first deal.

What do you experts think?

thanks, Nigel

     This is a scenario im coming across often now looking for rental houses; The market is competitive so when I make offers for asking price I find out that another offer got accepted. Maybe for more than asking, or maybe with all cash or no contingencies, not sure. After factering in my expenses; tax, insurance, repairs/maintenance, and management. The net rent is just enough to cover the principle and interest and there is usually less than 100 cashflow. Is that an acceptable first deal? 

I seams like I cant offer less than asking realistically, and I have just enough cash for the conventional down payment, closing, and little things after.

I appreciate all your input on this, Thank you

@Nigel Ford

since i made this thread i want your opinion on the financing i got approved for; its 5.7% interest and i have to pay 2500 to buy down the loan to that. It was a bigger pockets deal from guaranteed rate affinity. I already made an offer though so maybe i can get different financing in the escrow period.

@Anthony Wick

Sorry i meant just estimating the maintenance/repairs, such small numbers make a big difference with cashflow

   Ive noticed not surprisingly that when I lower the expenses evaluating a potential rental house, its much easier to find a good deal that cashflows. In John Shaubs book "building wealth one house at a time", When he evaluates a potential rental house he only puts tax, insurance, and repairs/maintenance as a 20% of rent expense. When I lower my standards to these expenses it seams a lot easier to make a deal, but at the same time i want to be safe. What do you guys think is that enough? 

Nigel

So what happens when a house gets burnt down? Does the insurance company have it rebuilt for the owner? Would Rohnert park and cotati be a better place to wholesale?

im interested 

    Wow small world! Your right that was a strategic mistake on my part. Its my first offer so im just learning all the negotiating dynamics. How do you close on multiple properties at once like that? Are most of your properties on the outside of the city or within it?

Thank you, Nigel

     I just offered 39,000 with owner finance on this duplex (7517 Mettetal st Detroit, MI). The cashflow looks good I think it would work even at the asking price of 49,900, They are offering owner finance at 7% amortized over 10 years with 10,000 down. What do you think about the area and appreciation there? I made it contingent on inspection and title documents. Is this a newbie mistake?      

I appreciate your input in advance, Nigel

     Thank you for your advice

     Ive read that book its great and it has excel info so im going to get excel now even if its gonna cost monthly, but it seems like my area has just enough 2-4 unit buildings for me to filter them down to the few I can afford and that cashflow. Wouldn't adding more filters complicate things?  

Thanks, Nigel