All Forum Posts by: Scott Rogers

@Charlene Stovin There are a number of other threads on BP related to this very topic. The short answer is that there are plenty of options available. i.e. Finding a partner that has down payment money, using the equity in your primary home as a down payment (HELOC), finding a seller that will offer financing, etc. All of these have pros and cons and each persons situation is different. However saying it can't be done is a "cop out".

I was thinking the same thing.  I guess the logic is to get the property under contract and then figure out if it's a good deal.  If not then terminate the contract.  Not exactly how I would do it but it's a viable strategy.  The problem is that if you do this often you might be labeled as a buyer who does not follow through.  

Is it possible to make the numbers work on a SFH that's larger than 1000 SQFT? In my areas a 1000 SQFT home would sell for between $75-$1.00 per SQFT and rent for about 1% of the listing price. The renter pool for a house that is $1000/month seems to be the same pool that could afford their own mortgage.

For cash flow I like MF better because it's easier to make the numbers work (at least in my area). For appreciation and flips SFH makes more sense. Having a mix is always nice and gives some diversification.

@Dillon LeRoy Pollard If you really want this it's not that hard to cut expenses and earn some side income in order to build your cash.  Can you get a side job?  Can you get a raise?   Can you downsize your car or phone or entertainment budget?

Some of the best real estate investors today were very frugal when they first started.  "Live like nobody wants to today so you can live like everybody wants to later".

I think once a person has switched from the "work for my money" to the "make my money work for me" mentality that books like these are no longer needed. There is a good chance that since you have found the BP site and forums that you are already there. As others have said, skip these kinds of basic books and graduate to the next level. Read books about REI strategies and business. There are tons of recommendations on BP.

Scott Rogers

@Drew Lied  I don't think 8% for capex, maintenance and vacancy is enough unless you have a long term renter and a fairly new house.  I currently use 15%.  

As the others have said the only way to become more comfortable with the situation is to have more confidence in your numbers.  That might be doing additional rental comparisons, call utility companies for actual numbers, talking to other investors in the area, etc.  

But at some point if the numbers make sense you just have to take the plunge. 

@Christopher Davis

"Realtor says she knows good contractors, not to worry."

That's what I would also tell you if I was trying to sell you the property. 

@Josh Buchanan Hard to read your numbers in this format. How experienced are you? Are you managing these properties yourself? All things being equal I would vote for the local market. If you are using a PM and cash flow is your primary factor I would go with the best COC return based on solid numbers.

@Mark Trebor  Great idea on the joint account with friends.  Wish I had thought of that 30 years ago :)