All Forum Posts by: Joel NA

Excellent responses....thanks all.

I'm curious as to what will happen with student loans---my local university currently had it's largest freshman class in history. Uncharted waters, indeed.

Kids sign 12 month leases around here... and consider it "late" if they're still looking and haven't signed 6 months prior to moving in. It all depends on location, it would seem.

Thanks for pointing out some of the risks. That's exactly what I was looking for.

excellent points....I kind of forgot that the HELOC rate could change....mine has a locking option as of yet, so that could help me hedge my bets...thanks for the reply. It was very helpful.

What are the negatives concerning using an already established line of credit to generate a down payment for a buy and hold rental?

This is assuming, of course, that I'm buying right and that the property will cash flow and appreciate. We have one rental in our college town already.

If your rents cover your mortgage, expenses and your line of credit interest, and still cash flow, aren't you set?

Hope that was clear. Thanks in advance.

I will continue to study... I don't want to get burned, that's for sure. I appreciate the feedback. I'll keep that clarification of the 50% rule in mind.

Thanks again!

I couldn't agree more Typerider...that's the situation I've run into in my town, too. Overpriced! Of course, the appreciation can be great, but not at the expense of cashflow, I guess.

The property in questions is an MLS, but it's been on a while. My 70K pricepoint would be the max I'm willing to pay and well under their asking price.

Perhaps this is a situation where the 50% rule is a good screening tool, but further analysis shows that it's still too expensive?

For the record...I'm toying around with finding motivated sellers...I've sent some letters and put the word out around town. I've lurked in the REO and foreclosure BP forums quite a bit. I use my GIS county site a lot to find info on places, too.

Thanks...

I understand that....while I'll have some equity right off the bat, I won't have near the goal for the "buy right" standards I've seen some of you guys talk about. That seems to be a bigger stumbling block than lower-than-wished-for cashflow, huh?

Tom C, 20K per unit is unheard of around here (college town). I'm looking at places way out in the county and not even thinking about anything in town. Still, those are unbelievably strict standards for my area.

I've learned from this site that the numbers have to work, though. I'll keep digging around.

I appreciate the feedback

This forum has changed the way I view money, not just RE. Thanks to all.

I would like to put in an offer on a brick duplex in my neighborhood. It's in great shape...I'm my own property manager and maintance guy but I've got a network of subs in case. Still trying to acquire my first property.

At my offering price, the 50% rule would be satisfied. However, when using the Property Analysis tool from BP, I get only $75 per door Here are my numbers...

70K price, $9,800 down payment at 7%/ 30 yr. mortgage

Rents at $900, $450 for each 2/1 unit

advertising $5/month
cleaning $3/ month
ins. $50/month
maint. $25/month
Landscaping $5/ month
PMI $30/ month
Taxes $91/month
Trash $10/month
utilities (propane) $75/month

Any thoughts, general or specific, would be appreciated. Thanks!

Can anyone tell me what it takes for a bank to consider a modular home as eligible for "stick built" financing. The place I'm looking at is a double-wide and has a brick 1/2 front facade and a two room addition. It sits on a cinder block foundation. I've heard that a bank will finance a modular but not a manufactered. Any thoughts. Thanks.

I see the same thing in my area, too. Since I've been lurking on this site, I've learned a lot more about how to accurately assess properties. Nothing very near my local campus even comes close to working. The university does seem to steady the outlying areas, however.

I'd love to hear more on this topic. Thanks.

Point taken. I'm not really ready to respond further...still learning. Perhaps more later. Thanks.