All Forum Posts by: Ryan Jones

My home is worth $360k,  with a current $130k loan balance (initially put $200k down, 15 year 2.75% fixed).

Should I sell the home, buy a cheaper ~$300k home with $60k down, and have the extra money as cash on hand to start buying a multifamily or commercial apartment unit to use the power of leverage?  Say I start a business with $200k capital...would a bank lend money if the new company wishes to buy a $700k apartment property that produces income?  Basically - I'm trying to not have my money tied up in my home on a low interest loan, and I'd rather use it to leverage bigger property.

Great story & motivation, thank you Leo!

3908 e. 72nd street was purchased in May for $25k and rents for $950/month?  I guess some nice rehab work was invested.   It isn't listed for sale currently.  Did you find that off market?

Well performing markets like Denver, Nashville, San Francisco, etc. do not have many flip or BRRRR deals because the rent ratio comes no where near at least 1% i.e. $5k/month for a $500k home. On the other hand, in Colorado, you can find good deals in cheaper areas like Pueblo where rents can be high relative to the home price. In summary, I agree to stay away from turnkeys. Plus you won't have any equity gain up front.

Call 911 and say you have intruders that have locked themselves inside and won't come out.  Have your property deed showing you are the owner.  Get it on camera.

Thank you Alan G.  Great point on the blanket loan.  I only have $50k at the moment though unless I pulled equity out of my own home.

@Joe Villeneuve

I thought the 1% is a good baseline.  Surely you wouldn't advise buying a $100k home that can only rent for $600/month?  You have a lot of posts & votes, so I'm definitely willing to hear what your thoughts are.

@Caleb Heimsoth 

I assume a 1% origination fee?  Not bad I guess if it ends up being $500 on a $50k property.  

What are the steps to take in order to get pre-qualified so that I don't lose a property if I find a good one in that range?  

To at least achieve the 1% rule, I'm looking in areas of the country where $50k properties bring in at least $500/month; $100k properties at least $1,000/month, etc.  

If I find a good $50k property and put 20% down, will lenders loan $40k?  On one hand you think they would be more likely too since it's a smaller amount, but I know even credit unions don't want to waste their time with such small loans.  

So in some podcasts I'm seeing the return on cash investment, but for these low dollar properties if no one will loan you small numbers, you'd have to buy it outright in cash it seems.

I'm curious about those of you who are looking at cheap properties if you are able to put 20-25% down or are you buying it all cash?

Thank you everyone for your replies!  I have $200k down on my current home (I should've used less to have more money to invest...I know.).  But meanwhile I have another $50k to get started.  But I'm researching and learning for awhile.  :)