All Forum Posts by: Susan Maneck

I've never had anyone criticize me publicly but I have had prospective tenants try and persuade me to lower the rent. Needless to say, they go to the bottom of the pile. In my experience, you never get better tenants by charging less rent. Sometimes when I see a tenant is having trouble making the rent on time,  I offer to reduce the rent by a nominal amount any month where they pay me before the due date. That has worked extremely well for me in my low-end properties. 

 LOL. Must be projecting. $850 is the most I can get a on a house I pay 30K for and I thought i was doing good! 

$850 a month rent on a 23K property on which you had lowered the rent by $75? That's an incredible deal, better than I can get even in Mississippi. Was this property in Wisconsin? 

My mother and I paid cash for our first house 15K but we didn't do our due diligence and found we had to put in 30K rehabbing it. I mostly used credit cards for that. We rented the house for a year at $840 a month, and then refinanced it with a HELOC. Wells Fargo has HELOCs available with no closing costs and they pay for the appraisal without looking at the purchase price. It appraised at 50K but they only loaned us 30K at 5.6% interest. They told us after a year we could ask them to lower the interest rate. So towards the end of the year we paid off the HELOC (using balance transfers, then called and asked for a different rate. They offered us 3.99% for three years. We used the money to finance my son's house which was purchased for 23K. The house I currently live in was purchased with a loan from my solo401K (30K) Now that I've lived in it for a year, I intend to take a HELOC out on this house and buy another rental with the money.

Does anyone but me find this addicting? 

Most local banks won't do no-recourse loans into a solo401K. In any case, my solo401K only has two properties in it right now. My other houses are outside a 401K. 

 Yeah, but from what I've heard they still expect each property to be worth more than 50K. For instance, if you have a fourplex it should be worth more than 200K. 

Okay, thanks. 

Thanks. Right now I'm not flipping, I'm renting. I'll let you know if I need your lenders name. 

Hi, 

Lately I have been buying real estate out of my solo401K and I would like to buy more using a no-recourse loan (which is the only kind the IRS will allow in this kind of account.) My problem? The banks offering no-recourse loans will only issue loans of 50K or more with the  borrower paying a 40% down-payment. I buy property in the 30-35K range. Mind you, I'm talking about 3bdrm 2ba houses with a two-car garages on 1/4 lots which I then rent for $800-$850. These houses are in the same neighborhood where I live.  Does anyone know how to get no-recourse loans for properties in this price range? 

Susan 

A conventional loan is pretty much any loan that isn't FHA or VA.