All Forum Posts by: Steven G.

Great Job!  Keep us posted on your next deals as well.  I didnt read through all of the responses, but did you do most of the rehab yourself?

@Kevin Kim

I feel that its always a good time to get out of paying rent.  Even if your property cash flows slightly negative you will be saving the money that you were spending on rent.

@Willie R.@John Cohen

Willie sorry to hijack your thread, but I think John Cohen has the solution for you.  John maybe you can share your experience?

I feel like doing a 2-4plex will leave you treading water at best for many years.  Most of the properties I come across cash flow minimally and are going to require some amount of time in managing.  To achieve the goals that you are looking for I feel like going big is your best option.  I understand your fears of failing big, but...

A lot of keys look similar.  How did she see someone with a copy of her key?  

@John R.

Great post!  This is probably the most realistic post I have read on BP.  I'm always searching for deals on duplex,triplex,fourplex properties and the deal that you have seems to be the standard.  One has to be in this business for the long haul to see if their investment is a winner or not.   Nicely done.

@Joe Villeneuve-  Thanks for the explanation.  I used this strategy to finance my first rehab, however the amounts that I borrowed were small enough that I was able to pay them back within the 0% introductory period, so I never had to develop a sophisticated exit strategy.  

 Yes you are.  You are basically restricting your tenant from having an adult relationship.  Treating your tenants like they are your children is enough to provoke them to act like children.  They are paying you, not damaging the property or bothering other tenants and you still have an issue?  Good luck.

@Joe Villeneuve

What percentage of one's CC limit can be used before it begins to dramatically effect their FICO score?

Is it necessary to explain to the financial institution who will be involved in your exit strategy that you will have some new debt on you credit report when you return to refinance?

I think that greatly depends on if you are working full time or not.  If you are working full time it can be much more exhausting to take that 2 hour commute that everyone seems comfortable with.  I work full time and I do not like the idea of having a rental too far away. Keep in mind you will also be much less inclined to check in on your investment.  

Furthermore I feel that the profit margins in REI are very slim for beginners not only due to the market being very competitive, but because we are going to make some mistakes that more experienced investors will be able to avoid. Again if time is not so much of an issue I think you can be a bit more flexible with your search radius.

Deals are very tough to come by in my market at the moment. I'm looking to do another rehab and I'm just not comfortable that there is enough profit in the deals I'm coming across. I only have enough cash to do one deal at a time, so I do not want to move backwards at such an early stage in my REI career. In my market this may not be the best time to make a move?