All Forum Posts by: A Lak

I am thinking of bringing in a partner with cash to complete the deal in order to keep my $5K. Is this a good idea?

$5K cash is before.

it's true that i completely forgot about having some cash after the deal. because the home is new and everything is included so I never thought about it.

I am able right now to buy the house and not rent it, $0 income from the house and pay the bills. Right now I am saving $500 a month that I used to spend on luxury items that i do not need.
the $5000 cash comes from 10 months of saving $500.

Please advice if I still need to wait to improve my financial situation.

What I forgot to mention is that I am from Morocco, and our prices didn't fall as in the US. any way I have checked again what prices were sold at 2 years ago and the prices have fallen from 1700/m2 to 1200/m2 . the seller is not the builder but he is a regular person who just want to invest elsewhere and wants his equity to buy in an other city.

This is a small apartment 1 bedroom, 1 Bathroom, 1 living room, 2 balcony ,1 open kitchen to the living room.

Here are my numbers

$350/month debt
$1750/month income
$500/month rent at least (I can increase that if I do vacation rent $50/day low season $70 high season, $700/month)
$0/month utilities renter pays his utilities
$20/ month utilities in case of vacational.
$50/month other general expenses
Selling price is $60.000
I have $5000 cash

I am still looking at an other property at better location seller is motivated (divorce) I can propose $50000 or a little lower but the problem is that I need to do some repairs and buy furniture to improve value the ARV will be the same the rent value will be the same. but the resale in case I need to go out is very difficult.

Here in Morocco banks usually work with a maximum 50% DTI

The small debt is a $350 / month and 3 years are left. I do not have enough cash to pay the debt back, i might refinance and be able to do a second deal. but still the problem is that later the bank will not accept to do more deals even if the calculation take into consideration the income from rents.

Hello,

I just found my first property, the seller wants to sell at 20% discount compared to what he has paid a year ago (new building) + free new furniture.

Now I want to go to discuss with the bank. Usually banks take into consideration the debt to income ratio. I already have a small debt that is taking 20% of my salary. I think that the bank will finance my first deal, but what about next deals, taking into consideration my debt to income ratio (including rent income) I will not be able to finance more deals.

Please advice on how you deal with this problem.

I was looking everywhere except in working class neighborhoods, I don't know how I missed it. I was only looking in areas that are for vacation/students/retirement/high income.

Now i have some work to do.

Thank you!

I am in Morocco.
Ex: purchase price of a 2 bedrooms apartment $160.000 renting price $600.

What I need to know are the factors that makes an area to keep low prices and high rentals.

Hello,

What makes (or makes not) an area/neighborhood with high rental and low purchase price to make it a good deal.

What I find now is the rental price is around 0,5%. I think I am looking in the wrong area.

I meant management company not realtor (english is not my main language).

So the management company will do daily/weekly rentals and they will take care of small repairs. and they call it the guarantee program which means that I will be guaranteed a monthly payment at the end of the month (no vacancies, no worries about late payment and so on...)

I have studied the area and it is active with tourists all year. this is the reason that the management company is accepting to make such deals.

The advantages that I see is that the I have an almost worry free investment.

The disadvantages that I heard from a realtor is that the furniture needs to be changed new every year. because of so many people coming in and out.(I don't believe him a lot)

I can't think of more disadvantages now.

To give you an idea about the calculation:
flat sale cost about: $60.000
Management company will rent it for $50-$60 a day.
I will get $500-$600 negotiable depends on furnitures & deco.