All Forum Posts by: Scott Person

@Lakevia Ingram get it if you have the time. The license affords you the ability to drive around when you want and look at what you want. Everyone has friends that want houses at some point or another. Some of them will want to look at thousands of houses before they buy one. Not always fun, but you learn and get a great idea of everything that's out there. And nobody mentioned the best part, it's great getting a 10K check or more when you buy your own. Then you just use that (and some more) to go buy another.

@Buddy Holmes - I love Buy & Hold, and Pizza & Beer. I will stop by.

@Andrew Merritt Building for me has always been cheaper. The giant neighborhoods that Beazer, Pulte, Mungo, Crescent, etc. build in are always offering monthly specials. $8500 off upgrades, $5000 off total price, and on and on. Plus the closing costs are paid for with a preferred lender, that will be ~$6500 for my new one. I've had 4 built total, this one I did something different with though. I didn't design it. The neighborhood I bought in had 2 or 3 homes that the contracts fell through because the buyers had a contingency on selling their house, which obviously didn't sell. I bought one that is very far along in the process and should be finished in early July. I liked most of the options that they picked. Some were strange and I would have never picked, and I would have done hardwood through the whole house if I started it. But they discounted the house two times up to a total of $17K to unload it. (I'll take that, thank you!) There is one for sale in the neighborhood right now in the 1st phase that is selling for $10K more than the one I'm buying and it's 500 sqft less. Should I just close and then sell it? Maybe it's a new form of flipping! Check the local mega-subdivisions around you for any houses that were started and then the contract fell through. The agents at the models will be glad to give you info for a potential sale. You might even be able to make an lower offer than what they're asking and get it depending on how bad they want to unload the house. Darn! I wish I would have thought to do that, maybe for the next one.

@Andrew Merritt - sorry was out of town, but to answer your question. "How do your returns look w/ the new construction property?" If you use your formula - "cash flow = rent - (mortgage + taxes + insurance + HOA + vacancy (1/12 rent) + PM (10% rent) + repairs (5% rent) + capex (5% rent))". I (and this is me) would get rid of PM (10%) & repairs (5%) & capex (5%). Save yourself 20%. The new construction is obviously not going to need any repairs, better not need any capital expenditures (except a fridge if the new house doesn't come with one, but Best Buy offers extended warranties if you buy one). The new home warranty is going to cover all parts of the home for varying timeframes for the different systems. Use a preferred lender and most of your closing costs are paid for. Best part is the company you buy from usually does a 12 month touch-up to fix nail pops, wall cracks, repaint, etc. So your 1st year rental gets "fixed" if anything needs fixing.

The New Construction SFR I just sold ~3 years after I bought it got me 5.5x what I originally put in, made me a few hundred a month x 3 years, and helped with taxes. Same tenants for 3 years, no problems ever. The New Construction SFR I have a signed contract for should get me ~$600/month, I'm not going to expect the same appreciation (but some), and will help with taxes.

You said you're looking to buy your 1st one. Do you have a primary? If you don't buy a new one. The model I just bought has both a 1st and 2nd floor master. Then you could house hack. I'm sure someone out in Summerville is looking for a roomie. If you have a Primary you could upgrade, or side-grade. and move into a new Primary. You keep the low interest rate where you were (instead of the crappy investment rate). And you wouldn't need the 20% down. That opens more options.

@Jay Hinrichs - That's the good thing about the Peninsula, there are a ton of old warped wood sideways leaning fixer uppers down there. The problem is the primo prices they are wanting for those 1800s rebuilds. It sounds like you have a good system and people in place, that is way out of my comfort zone right now.

@Andrew Merritt are you and @Jeffrey Stasz building an apartment complex yet? There is nothing on the market here. Multi's that aren't in a warzone sell in 2 days, over ask, for cash. Sadly I think I'll be buying yet another Single Family on John's Island (new construction at least).

Commercial Loan recommendations?