All Forum Posts by: Matt Rothwell

So where does this magic $100-300K come from? I haven't robbed any banks recently, so I don't have it. How the heck are you ever supposed to get started in investing if you don't take on some debt?

EDIT:

I see that Patrick posted while I was typing.

Good options, but they all carry more risk than a good rental, and still require a substantial amount of cash.

I'm still searching for my first deal, being picky in the process. I'm ideally looking for a somewhat dumpy multi-family home that can be fixed up and rented. Most of these homes are in somewhat questionable neighborhoods, but I don't really see that as a big deal, as long as the neighborhood appears to be in an upswing.

For example, I saw a duplex on the MLS in Durham that was selling for $30,000. I could put down 25% easy, and cashflow all day long. It looked to be in good shape from the pictures, and I drove out to see it. When I got there, I found a house that looked to be in good shape, but everything else around it was in shambles. The neighboring properties didn't have grass, and there were a few trucks up on blocks in the street. There were a bunch of children playing in the street, which I take as a good sign, but I ended up passing on it because the surrounding area just seemed so run down.

A couple days later, I'm wondering if I made a mistake. I didn't see anybody with conspicuous bandannas on their biceps or hanging out of back pockets, and the trucks on blocks both had ladder racks on them, meaning they were probably employed by somebody.

I probably missed this property, but in the future, what should I look for to indicate that a transitional property is transitioning the right way? Are there any signs that you look for to give you a warm fuzzy about buying in a mediocre neighborhood?

I'm assuming you mean that you wouldn't? Or you would?

This is also the kind of thing I'm a bit worried about. If tenants think I'm "rich" because I drive a "fancy BMW" (Its not really that nice, its a 2006 325i with 120,000 miles on it), I think that'll work to my disadvantage.

Hey, sorry for not replying at all to my thread. I've been busting my *** all week so far to get my first offer in and it just fell through. A bummer, but a good learning experience.

Anyways, Troy Fisher, the question about what I'd be carrying is fairly simple--anything that's going to have to go in the house. I'm specifically looking for dumpy multi-family homes that are going for a steal, but still habitable. That means I'm probably going to have to replace appliances, paint stuff, throw a bunch of stuff out, etc. A crappy truck would be useful I think.

I'm going to be managing my first property as soon as I can get an offer accepted. My plan is to buy a quad, owner occupy, and I'm going to skip the LLC because I don't see it really providing much in the way of benefits for my situation.

So here's the thing: since I'll be managing, I'm probably going to need some sort of beater/$3000 truck/wagon/van, since my BMW sedan is probably not going to be able to carry much stuff. I also really don't want to screw it up by carrying around tools, lawnmower, appliances, etc. I suppose I could rent a truck when I've got to move stuff, but its always a pain and I'd be back to needing to worry about dirtying it up again.

Is it possible to deduct a "business expense" like a truck even if I don't have a separate business/corporation setup? I know this might be a dumb question, but I've never filed anything other than a 1040EZ before.

Definitely not Chapel Hill, NC. It seems like every MF property on the MLS here costs $500,000 and it'll rent for $1200/unit/month max. When you factor in the insane (I'm talking $8000/year on a $200,000 home) taxes, I'm not sure how people make any money on the rentals here.

Im just starting out, and don't really know many people in the business, so I'd be interested in hearing some responses to this question as well. A good contractor seems like a pretty good person to know.

Carrie Collyer, thanks for the warm welcome! Everyone seems pretty great and willing to help where ever possible.

And Bill Worsley, thanks for posting, but I'm an NC State Grad! Its a tough life living here in the land of the Carolina Blue when you're the Red and White from State.

@Ryan Logsdon: You da' man. Sounds pretty simple to me.

I was looking at financing options, and I found the the "lending club" after a quick google. It sounds like a peer to peer loan service? Has anyone used it, either to lend money or borrow money? How does it work? Results?