All Forum Posts by: Sean Lambert

What is your goal for the house?  live in it, rent it out, flip it, ???

Don't do too much so it doesn't cash flow or you put more money into it than it's worth after it's completed.

yes, closing with cash is cheaper and easier (no bank and appraisal).  After you rehab, you'll need to close with a bank, which will likely require an appraisal.

I've used HELOC funds to do this before. Keep track of what you repaired/replaced/remodeled, so you can let the appraiser know how you added value.

Great progress.  Thanks for posting pictures!  It looks like a fun project.

@Tim Clarke Are you trying to use the money in the 403B to purchase a property without paying taxes on the withdrawal from the 403B? A 1031 would be used if you sold a property and rolled the proceeds into a “like-kind property”

If you want to leverage the money in the 403B, you might be able to take a loan from it, but you would want to look at the plan’s rules on loans.

Being an agent will help you gain connections and potentially finding deals before they are on the market.

With that said, in my experience, part time brokers are less than half successful as full time brokers.  More opportunities rise when you're a full time broker.

I think it's a good thing, as long as you're at least having the tenant covering the loan, utilities, insurance, etc.  It's almost like you're cash flowing the $600+/month that you would be paying for rent.

Can you add any value to the bottom unit to up the rent and add some cash flow?

Good luck.  Please keep the forum updated.

I've been lucky enough to buy two properties with seller financing.  You can just negotiate the terms and not have to use a bank at closing, so your closing costs are a lot less.   

Ted Turner said in his book that people thought that he overpaid for things, but he said he was more interested in the terms than the price.

Just run numbers and try to make the deal a win/win for both you and the seller.

Good luck.  Keep the forum updated!

Mistakes are just lessons learned.  If this is the biggest lesson you learn from buying a rental, you're better off than most.  Congrats on your new purchase and your new contact for a notary.

If you plan on living in one side, make the offer contingent on the existing tenant (of the side you want to live in) be out of the unit before closing.  This, of course, depends on what the current leases are.  

When making the offer, make sure the offer includes that the seller provide you a copy of their schedule E (the tax form they file that includes expenses and income on the property) and a copy of the existing tenants' leases.

Good idea of having someone help pay your mortgage.  Good luck!

I'd also ask what positive things is this person bringing to the partnership.