All Forum Posts by: Lucas Cookson

I'm looking at this same program. A "Streamlined 203k FHA Loan."

What I see is that you must keep the renovations to within 6 months. You only need to put down 3% as this is an FHA type of loan, but it also must be for a first time borrower.

I'm concerned about having a "contractor" come in to assess the cost of renovations. I was planning on doing all the renovations myself over time, so both the necessity for a contractor and the 6 month renovation time may be a problem.

Since this is an FHA backed loan though, you should be able to get the same or a slightly better interest rate from lenders. You will be paying mortgage insurance for the FHA loan though. (it's smaller than PMI from what I'm reading)

Thanks for relooking at the numbers and being honest Steve.

So, if the other numbers you listed are correct...

Copper 2001-2007 UP 388%
Steel 2001-2007 UP 238%
Asphalt Cement 2001-2007 UP 143%
Cement 2001-2007 UP 92%
Gasoline 2001-2007 UP 96%
US electricity prices 2001-2007 UP 118%

...but the houshold income has only risen 15%, doesn't that imply that Americans really have less money to spend than ever? If all of these raw materials have risen in price, their cost is funneled through into real products...
steel--> cars, sinks, washer/dryer, refrigerators
copper --> wiring, plumbing
cement --> driveways, brick mortar
gasoline, electricity --> we all know how this affects us

Basically, what we have is inflation, without a rise in income... squeezing people tighter and tighter, thus the current mess we are in. Until we see the prices of raw materials (gold is the easiest to track) come down in price vs the dollar, we will be in a pickle. :goofy:

You know, that's probably exactly what he was thinking when he placed the sign! "I'm gunna kill someone!"
Cmon man, if we died whenever someone placed a sign on the road we'd all be dust by now. Give him a break.

Having said that, I don't support using bandit signs. It is illegal. Besides, the first thing I think when I see them is, "probably a scam, or someone who wants to rip me off."

Yea, I've had the exact same experience.... at least with Bank of America. They would rather let the property sit on the market with no other bids (except mine) than negotiate and sell it to me.... while property values drop drop drop.

After 30 days I'm going to resubmit a lower bid. Maybe someone will wake up out of their doze.... but I doubt it.

Those that have told me they've gotten great prices have submitted cash offers or gone to auctions.

SacramentoSteve are you a realtor? This sounds a lot like what many agents have told me.... but not what investors/banks are saying.

Could you cite your source for this? I know my income certainly hasn't risen by 70%, though I wish it did!!! I just can't believe statistics on faith alone. My income has risen by about 40% in this time period.

I'm looking at buying and living in a foreclosure that needs quite a bit of work. Pre-qual went fine, and submitted an offer.

While shopping around for the best 30 year fixed, I've gone to 2 banks who said they won't even lend to me because the property needs too much work, and an appraiser would advise them not to lend.
I'll admit, it needs a new roof, and there is no fridge or stove. Is it a common practice to deny lending on a property that needs work?

They told me I'd be better off getting lending from a private lender... probably at a higher rate and having to pay all kinds of fun broker fees. What's goin on here!!!

My opinion is that action is better than no action. In addition to the ~$40 a month profit I make (after subtracting repairs, downtime between tennants, etc), I'm gaining equity, and it's been quite the learning experience.

In the end, 40 bucks is 40 bucks, and when I sell hopefully I'll be able to make a profit on that as well. Lots of people in California are happy just to break even on their rentals.

djh55:
I don't know who the roommates would be yet. I have a lot of renting friends, but most of them live in the hermosa, manhattan, and redondo beach areas. I doubt they'd want to leave their little apartments in those beach citites to move to Long Beach.... so I'd have to find new roommies.

The place I'm bidding on does have a private entrance though.

BMR:
I'll have to check out those duplexes. It seems like every other house is for sale in some areas of Long Beach, so there's a good chance one is available.

My properties are in a small town called Decatur, Indiana. It's about 15-20 minutes away from Fort Wayne. It used to be a predominantly white area with few rentals, but in the last few years there have been a lot of hispanics moving in who are more inclined to rent, so my parents and I are buying up the available homes one at a time and renting them out. The cashflow is positive, but also quite small.

I've been renting for the past 5 years in So Cal. I'm 27 and moved here just at the start of the housing boom. I have been priced out year after year as my savings were continually not enough for a down payment on an ever increasing home. :violin: I know, what a sob story right? =)

FINALLY I've been able to save a bit of money and the value of properties are dropping into non-idiotic ranges here in the LA area. YAY! I feel this is a good time for me to invest.

Specifically I've been looking in the Long Beach area due to affordability and proximity.

I'm here to learn and share information that I have learned. I do own a couple rental properties with my parents back in Indiana that make ~$40 a month profit (woo hoo). My goal is to acquire properties in need of some work, fix em up, and rent them.

A couple questions I have for you guru's are:
1. Would it be better to buy my first home, live there and have roommates help me pay my mortgage, or should I keep renting and buy an investment property with my savings?

2. Am I eligible for first time owner programs like CalHFA even if I own two properties in an LLC with my parents? And, even if I am, would you recommend using those programs given my strategy of buy/hold/rent?