All Forum Posts by: Sheldon B.

@Precious Thompson It is always a good idea to consider Buying vs Renting.  For you especially being young, I would consider house hacking.  There are several forum posts on this topic take a look around. 

@Brandon Sturgill I'm no expert on this, however, I would always ask for a Disclosure form prior to making any offer for a couple of reasons:

• First, something may come up in the disclosure that I didn't catch during my due diligence and if that's the case the offer price may be adjusted depending on what I find. 
• Secondly, the seller knows that you intend on conducting business thoroughly and with integrity and you expect the same in return. 

I would agree with @Stephen Barton that BiggerPockets is the best program on the planet.  I have gone to these type of guru sessions before only to find out that the required upfront cost is way more than I can handle at the time.  So rather than being fired up, always feel let down.  Maybe it's the promise of getting in with little or no money down that kept me going to these events.  Ultimately, I would say for the first time that I've have found something authentic here at BiggerPockets and that's why I became a pro member immediately.  @Ed Kahle I certainly understand the responsibility of having kids to support, however, from what I understand real estate investing can take some time to become truly profitable.  I still have a full time job that I use to support my family while I work on my investment strategy.  I know real estate will work! so while I am working the plan, I'm also working.  I find that it reduces the anxiety of wanting quick and immediate gratification.  I hope my personal story helped and I wish you all the best. 

Feel free to drop me a line anytime!

Thanks for the responses thus far...

@ Kirk R. - I am actually an Engineer and my wife and I both work full time and have good incomes.  We can definitely afford the deal;  We have some concerns about interest rates and how to actually pull the money out of the property for repairs.  A representative at the bank told us that once we move we can't do a home equity type of loan. 

@Elizabeth C. - We definitely need a new roof, upgrade the electrical system and  some external upgrades as well.  I ran some quick numbers but need to get actual estimates. 

My wife and I own an older home that need about $20K in repairs.  Based on the area we live in, our home has about $23K in equity.  Our home is currently too small for our family, so we would rather move into a larger home and convert the existing home to a rental property (this would be our first investment property). I've looked in our area and believe I've found a couple of potential properties that are in the $100K to $130K price range. The ARV of our current home would be $80K and rents in the area is about $750 - $900 per month.

Can this type of deal be done?  If so what do we need to be aware of? 

Also, how should we be presenting this when talk to lenders?

Thanks in advance for your advice...

While this is an older post, it has been a very valuable read for me.  I now have a grasp of the 2% & 50% rules and will now add them to my evaluations when looking for properties.  Thank you all!

Sheldon, 

I would tell myself to continue moving forward, stay the course, continue your certifications and work diligently through a down economy.