All Forum Posts by: Rodney Sums

@Jay Hinrichs I think dude was mad at you because here we are having a discussion about the debate and stress over buying a 15k minivan and then you chime in with the trials and tribulations of buying a 400k AIRPLANE with a mere 2400/mo payment (more than many people earn a month working) hahaha. 

@Simon Ghandil I'd like to learn from your experience.  Pardon me if my questions come across as cynical.  After reading your post and those from others that make the accusation that this is being a slumlord, I understand the following to be true of your prospective tenant/buyer

1. Someone who has credit so bad they can't rent or buy a nicer property or less expensive one so they can save and pay off debt affecting credit

2.  This person has bad credit yet managed to save 3 grand cash and has an income =/> 975x3 per month

3.  This person would improve a property they don't own but might own

4.  There's a bank out there willing to mortgage a 30k house

5.  This house would pass an inspection if they found a bank that would mortgage that property

6.  This person was uninformed enough to take on a lease option on a 30k property plus spend cash to improve it rather than improve their credit with their demonstrated ability to save cash so they could put 3pct down on a property in much better condition

7.  There's a big enough market for this type of tenant/buyer yet you're not facing fierce competition from other investors with the cash to do the same thing

If I'm off base please correct and educate.  That's a heck of an investment if you're getting nearly a grand a month on a house that small and inexpensive that needs work.

congratulations first of all for profiting.  10k may sound like peanuts based on what numbers other seasoned investors mention here. that's really not a small amount of money and it would take many hours to make that on a 9-5 job.  I see saving on seller agent fees saved you money.  I was curious if the buyer,  who happened to be an investor,  recognized you were the owner agent flipping a house and used it to their advantage to negotiate? If so,  would having an agent represent you possibly have got you a little more since they'd negotiate and market without the influence of their money being at stake or do you feel you would have had the same result or worse? 

Does anything need fixing? 

What does the insurance cover?  Does it cover the sewer lines?

How much is the inspection and appraisal going to cost you?

Are all tenants current on rent and have been current?

Are there any developments planned in the immediate area that would positively or negatively impact the value of your property?

I'm just asking out of curiosity and to learn from your experiene :-)

Is tile not cool in that area? low cost and durable for the party animals

Sell that Impala and buy an import van CASH.  You can find reliable vans in the 5 to 10k range.  Don't go in to debt 15-20k for a few more cubic feet of space.  I've bought and sold over 7 vehicles cash, never spending more than 7k for any and they all were reliable.

If that won't work, momma may be itching to experience the new car thrill and that's a new discussion.

@Diane G.

The most bizarre thing you ever heard was that counter-comparison you made.  It wasn't even apples to oranges, more like apples to iceberg lettuce.

I don't benefit from being murdered....the middle class and wealthy people benefit from the poor. Their D and F homes are the basis of comparison for the A home you aspire to live in (or currently live in).  If we all had the equal amount of drive, education, opportunity, and success, we'd all be equal.  As nice as it sounds, people don't really want that.

If it was profitable for you, I bet you'd collect rent from someone able to pay it even with government funds while having no job.  

@Isiah Ferguson some other posters touched on this and this may appeal to you.  I'm a new investor like yourself.  I bought my second property, and would say it is a C+ area.  HOWEVER across the street  to the east and north less than a 1/4 mile is a B neighborhood with condos about the same size and condition as mine yet selling for 30k more.  In the opposite direction is a straight D, crackheads chillin on the corner neighborhood.  However the median home price in the entire community/zip code is over half million!  Mine is pocketed off the main road near 1/4 million dollar houses.  Like someone else said, a neighborhood can have a D block, F block, and B block all with in less than a square mile.  Long story short you could avoid taking the D neighborhood risk with the lack of experience (as I did) while having the potential for better tenants at a lower cost to you.  Then you can learn to be a slumlord (haha)

@Jay Hinrichs

Be thankful for the section 8 people who never work and live off the government.  In a capitalist society where people compete to have better or more than the next person, you need someone with a lower socioeconomic status to make the higher one possible.  If we all worked as hard and achieved equally we'd be "gasp" a socialist society!  You can't have big, high and bright without small, low, and dark.  Those folks that frustrate you are the reason your house and car are considered "nice"... because there's isn't!

As a new investor I have a question intended to learn from you as opposed to advise you or challenge your plan. 

If all the investment properties are profitable,  aside from disliking debt is there another reason you'd give up 200-260k in cash considering the number of years it would take to get that cash back in monthly rent?  I do see in the long run you'd get it back and more plus the savings of not paying a mortgage and interest.

Also,  what made you want to pay off one rather than invest in more properties considering the amount of cash you have to do so? 

I'm glad too hear it's getting worse out there because you Californians will come accelerate property values here in metro Phoenix AGAIN haha. Seriously,  we feel it here too. I was outbid a few times as well but I can say 600 buys you damn near a mansion or mountainside property with a view etc