All Forum Posts by: Scott Buckner

ok. More info:  I have no debt. One small student loan of 150 a month. No car payment. No credit cards. No other debt. Good credit score.  I have about 5500 a month gross income and I currently rent and child support. Can't fix that.  So yes high dit.  I can't get lending from a bank because of this. I can buy because it doesn't take into my rent. But an investment property does take the rent into account. I like the duplex, triplex, 4plex idea. That is an option but not many of those close to my kids. 

Would it be wise to pay cash for a property and get that rental history then draw a mortgage out two years down road sobI can draw that money out for other houses?  

Or maybe buy a rental, live in it for a year, then rent it out?  

Trying to invest wisely and build a future with this 100k. What would you do??  

not a bad idea. Do you buy and then split it up?  How do you make unwanted land, wanted?  Or just sit on it for awhile. Not a bad play though. 

Hello. I have a general question I hope I can get some good advice from. 

I have about 100k Cash i want to invest and get started on real estate. Been doing lots of research and ready to get feet wet.  Here is the problem. I have a low debt to income ratio due to recent divorce and child support. But, in my mind, enough cash to get started. 

What are some good routes i can go to get renter history under my belt and raise DIT ratio so banks will lend me money for more debt houses or multi-family units?  

Should I buy, live in a year then rest out?  

Should I pay cash for smaller house to get started? 

Should I wait til market goes down?  

Please help, any advice is appreciated. 

Scott in dfw.  

ok. Man, the way you did it. I guess the correct way. ;). The deal does not look as good as I thought. Thanks for the input.   I am gonna go through process a little more.  To learn and soak up as much knowledge as I can. But it looks like you wouldn't do the deal??  Learning here 

Thanks for replying.  It is a lower income area in suburb area.  

Monthly Expenses

Loan - $1808

Taxes - $1100

Insurance - $600

Management Fee - $595

Utilities - $1000

Yes Gross Monthly Rent is $7870

They are asking $26,400 a door.  So $449k.  I might of did math wrong, so you are saying its priced too high??  Postive cashflow at about $2900 right now, of course I haven't taken any out yet for loss of renter percentage and/or repairs down the road.  So lets say $2k a month postive cashflow.  Is that not worth it?  Should I be expecting more from this deal?  What would be reasonable?  And rents could be raised by 10-15% in the next couple years easily with better management and maintenance.  

Again, new at multi-families so trying to gain as much knowledge as I can.  

SB

Ok I am looking at a 17-unit complex in Texas.  

Total Cashflow $7870 per month 100% occupied

Monthly expenses including - loan, taxes, insurance, management fee, utilities, - $5200

Net return per month - $2670

This would be my first multi - unit complex.  Does this sound right?  Me and another investor are kicking the tires and wondering if the math was correct.  

I did the GRM and it was 12? and the cap rate was at at 12% if I understood that correctly. Seems too good to be true but wanted thoughts to see if I did everything right and good deal or not. Lower income area and rent is average for that particular area, It is 100% occupied right now but definitely could use some improvements but rent won't go much higher for the area that it is in. Repairs are minimal - maybe 15k worth.

Looking for advice and questions I need to be asking as I go through this process.  Getting past revenue records and utility cost as we speak to see what the history on complex is.  Have a few rent houses but trying to take leap into multi-family and kinda scary so want to make sure I try to think of everything.  

Thanks in advance,

SB