All Forum Posts by: Peter K.

I heard on BP Podcasts multiple times- especially from Co-host @Brandon Turner that he bought a house as soon as his daughter was born, he bought a multi-family property for a 15 year note so that when his daughter wants to goto college (or use that money to invest in real estate) that she can just re-finance and take that cash out to pay for it.

I heard something to the affect of: you can re-finance that and take the built equity and use that cash for college?

How does this concept work? How can you-refinance on a home that you already have most paid-off? Please provide examples as they are the best way for me to grasp concepts.

Gotcha. Great explanations. Greatly appreciate it.

Fantastic! Very inspiring and it proves that no matter what background, education, age, etc. you are, real estate is such an amazing investment vehicle if you use it right!

So I get why people use cap rats and how to calculate them.

But why is high cap rate good for seller and low cap rate better for buyer? I don't get the reasoning behind it?

What are some methods to find (good) tenants yourself if you decide not to use a PM?

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So I'm under contract for a SFR (that is 1/2 of a duplex essentially) but listed as SFR- just sharing one wall and backyard fence. I'm currently still on the due diligence period - completed my home inspection last week- I have one more week of due diligence period until I'm locked in to purchase this home. I'm having second thoughts looking at my math and what-not but I wanted to hear everyone's opinion since this is my first property.

Property details= 2 BR/2 BA, Flat, Laminate floor, One car garage, decent sized backyard, next to Hospital and Great medical district of a University

Listing price was 74K

On market for 6 months

Agreed purchase Price 65K

Down payment is (20%)= 13K

Bank finance 52K @ 4.5% Interest

Anticipated Rent is $675-750 per month

So after the inspection, for it to be move-in ready I'm looking at about $1K repairs and possibly $500 to renovate/update.

So based on the math: 1) It doesn't meet the 2% rule (would be $1300 rent, not even close) 2) But meets the 50% rule (337 - 267= $70)

In addition, my net cash flow (deducting CapEx, repairs, PM, etc) is looking like $70+/month) so it isn't like $100-200 like what most people would want.

Since it is a duplex and if the other unit isn't properly maintained, my risk is that I have no control over it since I don't own that property and I can't not care since it is attached to my property and it can affect it.

Based on the math and the situation, should I go forth?

Can I remain the spots that need re-painted or does that whole side of the wall need to be re-painted? How many coats do I need? 1, 2?

So I'm purchasing an investment property where the previous owner had it rented. It has a lot of scuff marks on the walls, both the bedrooms, should I re-paint the rooms or do I have to re-paint the whole house to match it? Please help. I don't think cleaning it with a magic eraser will help. I definitely have to re-paint. I don't have time to re-paint the whole house or the money to pay for a contractor to do it. 

I currently have a SFR under contract, just finished the home/termite inspection today. There is a lot that needs fixed or replaced and I already negotiated price lot lower then asking price prior to the inspection. What are my options at this point? I feel like if I fix/replace most of these it'll cost me way too much, which I won't be able to afford after all the down payment and closing costs, this is an investment property keep in mind that I want a tenant to move in to so I need to have it move-in ready so I need to do a lot of replacing and fixing around the house. Can I negotiate to the seller to lower the price even more or should I back out of this completely? I don't know which course of action I should take. Please advise.