All Forum Posts by: Edgar Collado

Something to look into is that 0% interest on the loan. Could be a tax issue for your relative since the IRS could consider it a gift and you might have to pick up the interest as income. My wife is a CPA and says the interest should meet some minimum required rate. There are a couple of important loopholes so may be worth a quick call to your accountant. I think the loan is small enough that it shouldn't be a problem.

Seems like a good find but like others have said you should be conservative with your expense estimates and when in doubt estimate on the high end. As far as the down payment, maybe consider one of the crowd funding options like prosper.com or realtymogul.com. I've never used them but might be worth looking into. My biggest concern with this for you is the lack of reserves. Like others said what will you do if you have to replace the roof or make expensive repairs. Make sure you build that cost into your analysis. Look forward to hearing how it plays out. Good luck!

Congratulations!  Great find!  Direct mail is such a great tool that is not really leveraged by many people.  I was a real estate agent in another state some time ago and one of my key lead generation techniques was direct mail.  It really worked well for me.  Not only due to the call backs I received, but also because when I cold called the area most people knew who I was since they had received my mailers a few times.  Way to go!  I'm hoping to get back into real estate over the next several months and will definitely have direct mail in my strategy.  Wishing you continued success!