All Forum Posts by: Scot Howat

Most people dump a few hundred dollars a month into a savings account without thinking twice.  If you're losing a few hundred dollars a month I don't think that's a big deal.  Think of that property as a savings account.  Except that the mortgage balance is getting paid down ($), you get great tax write offs ($$), and if you bought a decent property then the rent will increase ($$$) and the value will go up over time ($$$$).  
If it was me, I'd keep it and move on to the next deal.  You can always reposition it later (refinance, re-rent etc....).  

I bought a deal that was a negative cash flow from day 1 because of my financing (13% interest rate), and I knew it was under valued but that the market hadn't caught up to it yet.  I purchased it for 90k and based on the current available comps the appraiser also said it was worth 90k.  But I knew it was worth at least 120k, but there were no comps to support it.  So I bought it anyways and lost about $300/m.  I have a great tenant pool in that area FYI (very important).  15 months later it appraised for 125k and I refinanced into a small positive cashflow but a huge equity position.
Not all negative cash flow deals are bad.

You've neglected the most crucial information.  Tell us about the tenant pool in the area, and that are attracted to your product.

Welcome, I'm seasoned (10+ deals).  What part of the area are you looking for deals in

I'm in Buffalo Grove.  Feel free to reach to out me

I'm up in the NW burbs (border of Cook and Lake County).  Hit me up if you're looking to move to this area, I can help out.

Hey everyone, the small portfolio lender I've been using for my loans just stopped lending altogether.

Does anyone know a lender who can do condos (investments) 30 year loans with a loan amount under $75k?  I have some in my personal name, and some in my S Corp.  

I'm not looking for anyone who sells to the secondary market (FNMA, Freddie etc...).

Located in IL

Not quite, I'm in NW suburban Cook county and DuPage county.  no wholesaling though.

Welcome!  There's good rental deals everywhere, you just have to know how to find them.  Chicago has some tough landlord/tenant laws if you're within the city limits.  Make sure you're familiar with that before you buy.

Cool data, thanks!

You should try lending that money, stick it into a IRA and lend it out. Or pool it with other people that have the ability to secure a mortgage