All Forum Posts by: Ramandeep Sidhu

Appraisals typically take into account the physical condition of a property, its location, comparable sales in the area, and other factors that may affect its value. However, the appraiser may not have taken into account all of the specific repairs that you listed. It might be a good idea to have the property inspected by a professional, so you have a more accurate picture of what needs to be done and how much it will cost. This information can then be used to negotiate the price with the seller. Good luck with your live-in-flip project!

I have experience renting properties near colleges. It can be a great opportunity to tap into the student rental market, but you are right to be concerned about potential damage to the property. To mitigate this risk, I always screen tenants thoroughly and have a solid lease agreement in place with clear expectations and consequences for breaking the rules. It's also helpful to have a reliable property manager who can handle maintenance and issues as they arise. Also, I make sure to factor in potential vacancy during summer and holiday breaks when determining my rental rate and financial projections.

Hello, I'm sorry to hear that you're facing difficulties with your first investment property. It sounds like you're in a challenging situation. If the condo is draining your bank account, you may want to consider listing it for rent until you can find reliable contractors to do the work you need. You could also reach out to local real estate investor groups and ask for referrals for dependable contractors. Also, you could consider hiring a property management company to help with finding tenants and managing the property. Whatever you decide, make sure to thoroughly research your options and weigh the pros and cons before making a decision. Good luck!

Congrats on saving $6k and working towards investing in real estate. It's great that you have two options on the table, but it's understandable to feel overwhelmed and intimidated about which path to take.

Both FHA loans and short-term financing have their own pros and cons. FHA loans can help you get into a property in a decent area, but you have to live in the property as your primary residence and be prepared to deal with the challenges of being a landlord. On the other hand, short-term financing can be a great way to build up your real estate knowledge and experience, but it requires you to be well-versed in rehabbing and finding trustworthy contractors.

Given your background as a CPA and your available time after April, I would suggest taking a closer look at the short-term financing option. You can use your ample time to learn as much as you can about rehabbing and connect with the right people. This will not only help you make an informed decision, but also help you maximize your return on investment.

One option is to take out a conventional mortgage, which is the traditional type of mortgage for investment properties. This type of mortgage typically requires a down payment of 20-25% and a higher interest rate. Another option is to consider an FHA loan. FHA loans may have lower down payment requirements, but they come with higher mortgage insurance premiums. If you have built up equity in your primary residence, you can use a home equity loan to finance the down payment on your investment property. Another option is to consider a portfolio loan, which is offered by local banks and not sold on the secondary market. Portfolio loans may have more flexible underwriting guidelines and lower interest rates. Finally, you can consider a hard money loan, which is based on the property's value and not the borrower's creditworthiness.

It sounds like the first buyer may be trying to use the threat of a lawsuit as a scare tactic to try and get you to sell the home to them. The first buyer was in breach of the purchase agreement by not being able to close on time, which gives you the right to terminate the agreement and accept another offer.

Consider that they may have a case if they can prove that they had the intent and ability to close the sale, but you did not allow them to do so.

It's worth considering that if the first buyer does decide to sue, the court will consider the terms of the purchase agreement and the actions of both parties leading up to the termination of the agreement. It's also important to keep all communication and documentation related to the sale, as it can be used as evidence in court.

It is generally a good idea to make repairs before selling a home, as it can increase the overall value and appeal of the property to potential buyers. It all ultimately depends on the specific repairs needed and the cost to fix them. In this case, if the repairs are minor and the cost to fix them is only $2,000, it may be worth it to make the repairs in order to increase the selling price and appeal of the home. Consider if the increased selling price will cover the cost of the repairs and give you a good return on your investment. Weigh the cost of the repairs against the potential increase in selling price and decide what makes the most financial sense for you.

When assigning a wholesale deal, you should have a few strategies.  This can help make sure deal is completed, even if unforeseen challenges arise.

You should have at least two exit strategies:

1. The first strategy is to assign the contract to another investor. 
2. The second strategy is to double close the deal.  The wholesaler acts as the buyer and the seller in the transaction. 

It's a good idea to have backup exit strategies as well, such as renting the property, holding on to the property as a long-term rental, or even selling the property to an end buyer.

It depends on your investment goals and risk tolerance. The opportunity to purchase an 8-door apartment in Texas could potentially provide higher returns in the long-term, particularly if you are able to raise rents by the end of 2023. However, it is important to consider the negative cash flow of $400/month and ensure that you have a plan to cover that cost until the rents increase. Consider the current market conditions and potential changes in the next year. If you are comfortable with the short-term negative cash flow and believe that the potential long-term returns outweigh the risks, then it could be worth considering the purchase of the 8-door apartment in Texas.

It ultimately depends on your personal financial goals and risk tolerance. If you are looking for a higher return on investment, it may be worth waiting to invest in a location with higher cash flow potential. However, if you need the cash now or are comfortable with the lower ROI, then selling the property may be the better option. Additionally, it's important to consider the current market conditions and potential changes in the next 6-12 months.