All Forum Posts by: Sean MIddleton

Is PropStream a reliable tool to use instead of a title search?  It shows lien information as well as mortgage history.  Is this enough information when buying Foreclosures from a Sheriff sale or should I still pay for a title search before bidding?

I am in the analysis paralysis stage of learning before starting to invest in real estate. As I am running these numbers I feel like its a complete guessing game for the Cap Ex, Repair Cost, and Vacancy rate percentages. I have been running all of these at 10% each to ensure I don't get burned. However, this seems overly conservative and makes a huge difference in the over all ROI numbers. It seems really tough to find any deals that make sense running the number at 10% across the board for these. Does anyone have any set methods or systems in place for calculating these percentages? Any help would be much appreciated.

Ive decided to pass on this property.  It is only 980 sq ft total.  There are 3 x 1 bd 1 bath apartments and the sizes are 340 sqft, 320 sqft, and 320 sqft.  These seem way to small to get $700 a month and I would expect vacancy rates to be high or have to lower rent amount.  Thanks again for all of your wise advice from this awesome BiggerPockets group.  #YOUROCK

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*This link comes directly from our calculators, based on information input by the member who posted.

Above is a Rental deal that is being sold at full ARV.  The price of the house is $115k and the monthly rental income on this triplex is at $2100 per month before expenses renting out 3 x 1bd 1bth units at $700 per unit.  It already has property management in place and has 1 of the 3 units rented out currently.  This property has just been renovated and is being sold as turn key. When running the numbers it seems like a great cash flowing property but buying at full ARV is where I get concerned.  The property is in a D class area which is a little out of my comfort zone but the cashflow seems extremely good.  I am a new investor looking to strike my first deal.  One of the other concerns I have is the property is only a 680 sq ft house with a 680 sq ft basement.  This seem rather small to be converted into a triplex.  So, Im a little nervous the units wont actually rent for what they are asking and/or I wont be able to fill them with decent tenants.  Help me make sense of this deal as I am interested but am nervous about moving forward.  Look at the deal above for the numbers.  Thought????

Thank you so much for all your feedback.

Do you think this would be an acceptable approach?  Take out a conventional loan to first purchase the property.  Use cash out of pocket or CC to repair the property.  Then find property management, fill with tenants, then refinance using a commercial loan?

I was speaking with a lender and was told that I would not be able to count the rental income toward my income for getting loans on investment properties for 24 months.  Is this the same rules for all lenders in Indiana or does this seems like a specific rule for this specific lender?

All of you have been super helpful... I will make sure to not utilize these loans unless I am planning to house hack.  Thanks for all of your wise advice.  #YOUALLROCK

Thats exactly why Im asking here. It just seemed like there were some secondary address possibilities and possible legal ways to utilize FHA. Ive heard of ideas like have 1 room for myself and rent the rest of the place out and visit periodically. I never want to break the laws but BiggerPockets is all about being creative so I was just curious if there were creative strategies to utilize these loans without being illegal. Thanks for all your guys advice. I had the quotes because I didnt know if I could purchase a vacation property that I wouldn't necessarily live in 100% of the time but would stay in for vacation purposes but rent out while im away. It seems from your response that this wouldn't be acceptable either. Thank you for all your wise advice.