All Forum Posts by: Robert Howard

@Mike Dymski thanks for your opinion.  Yea I was thinking it was low, but with it working at a 20 year and above mortgage I though it would be fine.  Plus I have about $10K.  This will be my second purchase this year.  So that's three doors. My goal of buying 2 properties a year.  Goal is to have 20 properties in 10 years and at least 5 of them free and clear.  Want to have about $50K passive income coming in a year.  I offered $30K and was just told by agent that offer was reject.  So I'm thinking about full asking. 

Hey I'm currently in South Georgia.  I have been looking at this duplex that has come up for sale.  The agent listed that the rents are $425/$400; which I believe are below market, but I ran my analysis with those.  Could the BP community please look at my calculations and tell me if I missing anything or miscalculating anything.  Currently I only have a connection with a bank that will do 10 years at 5%.  I would like to do longer terms, but can't find a bank who will do an in-house loan for longer.  They tell me it has to be at least $50k.  Also I know the arguments about $30k homes, but this duplex is on a decent street.  In my area there are nice houses that can be bought for $30k or below and rented between $500-$850 a month.  But here is the Link to my deal.  Please feel free to correct me on anything.  I'm attempted to learn.  I'm no longer on the side line, but I'm still timid.

I'm in agreement with Velarde. I wouldn't use all my cash to purchase a property. I would get an FHA loan and only use 3% money down. Also remember to buy like an investor not someone who is looking for their dream home. Make sure you buy with build-in equity. I'm from Augusta, but currently live in South Georgia. I went back home and visit last month and was shock by all the construction and infrastructure building. I hear it is because of the expansion of the military base and that they are trying to make it the Cyber control of the east coast. Augusta still has a ways to go, coming from New York, you may get bored, but I believe its a great rental market because of Fort Gordon. They are trying to revitalized the downtown area. The have cleared out a lot of the low income housing and new middle class housing is going up. A lot of the middle class population moved to Grovetown and the next county over Columbia County, so I was told they are trying to bring people back. The school system in Columbia County is suppose to be better, but from my understanding, its just under reports. Atlanta still has deals and a great influx of people. Also with the business you are in you maybe able to find more things to sell. I just started and want to start where I live buying real estate, so I haven't bought anything in Augusta, but that is my next hunting ground when I get a good understanding and nest egg. I hope this help.

I have been to several banks and the credit unions around me advised they don't lend on rental properties.  That's not to say that I have given up.  I just found this one and settled.  The niche I'm in is $30K houses.  The area I'm in has some great deals at this price level.  I know the whole argument against it, but if you look at the link the house looks great and its in a work class neighborhood.  All the banks I talk to don't want to lend on nothing under $50K unless its an in-house loan and with them, no one wants to over 10 years.  I thought about Visio, but they only do like 7 years.  I will figure something out, but my main question.  If it is cashflowing at a 30 year mortgage if I do a 10 year mortgage is it necessarily a bad investment.  I know the millionaire investor talked about shorter terms in his book.  So you can have 100% of the profits quicker. My small town in Georgia has pockets in it.  Plus I like the Clay Morris of Morrisinvest.com model.

So I have a community bank that will give me a 10 year mortgage at 5%. The only thing about that I can't find a property that fits my criteria of $100 a door or 11% COCROI. I don't plan on drawing any money out anytime soon. So I wanted to know if I'm paying off properties in 10 years or less is it ok to get low ROI(s). Hereisthe deal link.

It's funny you say that, I just thought about that the other day and call my insurance agent and applied a 2nd contingent. So if all four of us in the car and something happens. The money will not go to the state. I don't want someone to sue me for one of my propertis and have access to all the properties I accumulated.  So fill me in on how you have your entitis setup. Feel free to inbox that info. I'm really trying to get things setup now,  so it will not be so complexes later, when I grow into my dream!

Haven't thought about a trust @Sherman Ragland. I been doing research and haven't seen that mention. I want the tax advantages of an LLC, plus I plan on haven't at least 100 doors and I know I don't want all of them in the same entity, so my thought was to have no more than$200k in each entity. Then when I get more than three create a holding company for all of them. What are the advantages of putting them in a trust. Plus I don't want to jump through legal hoops to do upgrade properties using 1031 exchanges or when its time to sell. I see you have a LLC.

I'm getting ready to quit claim a property into my LLC's name, but I thought about insurance issues. Can I keep the insurance in my name or do I need to move the insurance into the name of the LLC. Also if I do change the name of the insurance to my LLC, will that cause an issue when they forward it to the mortgage company. Can someone advised if they left the insurance in the their name or change it to the LLC.

He advised to email dave@biggerpockets, I haven't heard anything, but it is also a Saturday. 

 Maybe we should tag @Account Closed and see if they can help us.

So I have completed the "The Millionaire Real Estate Investor" by Gary Keller.  In his book, he mention about buying home warranties and letting the tenant pay the co-pay and call for their own repairs.  Has anyone employed this tactic and what are the pros and cons of it?  I would think the tenant wouldn't really be responsible and take care of the issues if they have to pay a co-pay every time, but it would also cut down on the tenant calling you for minor things.  Please let me know your experience with this. I'm currently working on my lease and want to add it.