All Forum Posts by: Scott Schultz

since you dont have Menards in Texas, i would steer you to Sherwin Williams Promar 200, its the same as the Conco Product I have been using since 2009, great coverage, and reasonable price, around $15/gal, in our market, the high end stuff doesnt seem to do any better, I have used it and my painters have, and they love how it covers, flows and cuts.  

I dont mean to be critical, but I ran a tax calculator for GA, and Fulton Co., Atlanta $125K comes back as $975 Homestead, and $2273 with no exceptions, that difference would give you negative cash flow, what is the property assessed at? the Millage Rate there is $43.44 with a $30k homestead credit, i cant imagine a rental would get a homestead credit? i very well could be wrong on this, but i dont want to see you have to feed this thing every month. 

i guess i didnt notice, but Insurance seems high, and taxes seem quite low, but that could be what they are in your area. 

first I have to ask about the $4100 purchase closing cost, that seems really high for a $125K deal, second every market is different, but the returns you are getting seem quite small for the risk, my calculation is this: total initial investment (after repairs) financed at 5% for 10 years with a 10 year amm. and taxes + insurance per mo. subtracted from rent must equal $250 or more.  thats just me,  but based on your numbers i see little reason not to just put it in a conservative index fund, and not have to manage it, unless you see enough market upside down the road.  im not against what you are  looking at, everyone has different goals, but for me, your not making enough for that amount of risk.  but i also dont know what you get for $125K in your market, in my market that would buy 3-4 houses pulling in $700/mo each if you are a shrewd savvy buyer.

The market has been good to me, just locked down my second deal this month, that makes 7 since april 2015, one is a flip that's on the market, the rest are buy and hold. i started a blog on wordpress, I'm "northwoodsinvestor" 

First Make a Plan, what you want to invest in, why and how big do you want to grow it. second get your finances in order, know where the money is coming from, i see so many newbies put the cart before the horse and it ends in disappointment or worse. Next search out the best deal, have some of us here on BP analyze it with you based on your goals and skill set. then Pull the pin. its quite simple. i would say the most important thing is to get your money figured out, how much you want to spend, how much you have to spend, and if your borrowing, from who, and what the best terms are. one of the best exercises i do is prepare a "Personal Financial Statement" it helps you understand your Net Worth, its kinda like your report card for a banker, it shows how responsible you are with money, regardless of your income.  Good Luck, I'd be happy to help how ever I can.

my question is, whats the FMV?, and where do you see them listed, MLS, or auction sites? the auctions dont reflect the reserve. I purchased one recently for $6K but its in a small town, and yes its flawed, but nothing i cant deal with, I will put $4K in and have a rental, but in big cities, its a totally different story, id imagine its in a "D" area or worse, if i gota wear body armor, to go there I wouldnt want it, just my 2 cents.

you have a great opportunity with your background, if you can do work for other investors, learn what they do, and watch their successes and failures, seek out the more seasoned folks, even if your working at a discount, it may be worth it to learn on their dime. Good Luck!

Welcome to BP!

Is the property listed in MLS? generally they have an agent put them in MLS, sometimes "on Hold" if the MLS allows it, tht list price may give you an indication where their reserve is, it seems that the reserve is around 10-20% off the MLS List price. dont get all excited about these, in many cases the seller is looking to break even on their insurance from HUD Fassy or Freddie, so the pricing dosent make sense, i know of one in Auction.com that has a open of $20K and the reserve is around $150K the property is maybe worth $120K after repairs, My rep kinda indicated where I had to be on it, i said they are F'n Nuts.