All Forum Posts by: Ricardo S.

"Hope" is not a good business practice.

If I knew that a unit will rent for $1200 on a 1yr lease I would list it for that price. However, If I wanted the tenant to stay long term I would give them an incentive to stay longer. That incentive would be $1150 for a 2 year lease. 

See what I did there?

I am going to explain this in the simplest way possible.

You found a house for 50k but its a total dump and in great need of repair..

You see that similar houses in that same neighborhood are listed for 150k..

You estimate that it will cost 60k in repairs for that house to look that the ones in the neighborhood selling for 150k..

you get a FHA loan which covers the purchase price of the house + the repair cost. So 50k (purchase price ) + 60k (repair cost) = 110k loan amount.

So essentially you will have 40k in equity after the repairs are complete and you close on the loan.

* But for FHA loans you have to live in the property for 1 year before you can sell, move out or refinance.

@Joshua White

"Renting places in large cities for the sole purpose of putting them on AirBnb"

The problem is, in most lease agreements there are strict policies that prohibit this. Unless of course, you work something out with the landlord before hand.

@Chris S.

go on the HUD website. They have a list of all the approved FHA lenders in your area.

http://www.hud.gov/ll/code/llslcrit.cfm

@Kait Hill

 The price includes all animals, buildings and equipment. The biggest factor for the high price tag in my opinion is the fact that oil wells are on the property.

Here is the link: http://money.cnn.com/2015/05/21/real_estate/waggon...

Acquisition cost: 725,000,000

Lot size : 510,527 acres

What would be your plan for this deal if it was your? 

Would you buy and hold?

Subdivide and build a small town?

How would you finance it? 

The strongest market is NYC but Multifamily prices are $500k+

@Dale Eicher

The order is based on who is the most qualified. 

Background check

Credit check

references 

income 

etc

@John Hammers

Are you single?

The reason I ask this is because you can get the Duplex and share a unit with your mom for 1 year and rent out the other. That way it will help you save for another investment much quicker with the extra income. Then move

or

Get a distressed triplex and add value to it using an FHA 203K loan.

The important thing is the average rent for the area. Which is also shown on the site.

All that means is that 60% of rents for that area fall between that price range.

It increased to 80% because the price range increased.