All Forum Posts by: Raj Gandhi

@Bruce Runn I've experienced some variability with the # of allowed cash-out refis.  One mortgage broker wasn't able to do #5 for me but US Bank was able to (they kept the loan and didn't sell it).  US Bank said that #5 was the last cash-out refi they'd do for me.  As @Brie Schmidt said, 10 Fannie/Freddie is the max I've been told as well.

Here's a forum tip.  To link to someone, type @ and the first few letters of their name.  At the bottom of message box, their name and avatar should appear; click on it.  Their name should appear highlighted.  When you link to someone this way, they'll receive notifications and be more likely to reply.  Welcome to the forums.@Brie Schmidt

@Account Closed mentioned by charging additional monthly rent for pets.  I bet you could find a price where you'd tolerate a tenant having a pet (+20%).

@Takira Smith , like @Nicole Pettis said, there are too many variables to give a great answer.  I'd suggest using Zillow (or similar) to subscribe to a location and property type to send you automatic emails of home listings.  For example, 3BR 2BA in your zip code.  In the course of a couple weeks, you should become familiar with typical prices.  In my area, those are around $130k in good condition.  

If you're looking for a flip, then target properties around half of the good condition price.  That will give you a budget of 20% to rehab and 30% profit (of the good price).  Good luck!

Thanks for the replies to the post.  I like the discussion (even more than the outcome).

Working with your body is generally time-limited to a few decades because your body wears-out.  Injuries can be career ending.

Working with your brain is also generally time-limited.  Mental acuity declines and skill sets age.  I'm actually in this category.  I'm an M.S. electrical engineer with 15 years experience.  I'm either peak or past peak.  I'm currently employable but less so every year.

The thing I don't like about management is that it invariably doubles interpersonal relationship issues.  Everyone has a boss but not everyone has employees.

The one I'm least confident about is that investing money of others is the pinnacle. Investing my own money, can be in a passive investment and my finances would simply be on autopilot.  Investing money of others requires constant dilligence to monitor and report returns.   

Rich / wealthy to me means no need to work being paid by the hour.

If your goal is to be rich / powerful then here's a ranking of career types.

• working with your body (clerk, construction, farming)
• supervising people who work with their body
• working with your brain (engineer, marketing) (college degree)
• managing people who work with their brain
• investing your own money (real estate, stocks)
• investing the money of others

Calling this a ranking is overly simplistic.  It would be more like a ranking of probabilities. For example, pro athlete makes money with their body but the probability of becoming rich is low.

A simple bullet list doesn't show the ease of movement between careers.  It is common to move one step and become a supervisor or manager.  However, becoming a manager or supervisor in a particular field is generally a dead end.

Investing doesn't necessarily have prerequisites of education or experience.  However, intelligence is necessary and can be gained by education or experience.  

One significant benefit of investing your own money is that you can be your own boss and not report to anyone.  Consciously or not, I think that's why we're here investing in real estate.

This probably isn't original but I can't think of where I saw it.

I'm with the others, refi and pay off the credit cards.  One additional benefit I haven't seen mentioned is locking-in a long-term fixed rate. You could reasonably get a 5% rate which is fantastic when you look at historic rates and historic inflation.

@David Cohen most carpet pad is stapled down.  Pull up a corner (might need pliers to help pull) like @Patrick L. suggested and take a look.  You can push it back into place without tools.

In cars... I've never found a smell that didn't go away in a year.  I had a cat pee in the passenger seat and a pound of fish in the trunk for a week.  With a normal amount of cleaning, a year later, it didn't smell.

Good luck.

I love Zillow.  Mainly I like their property search and automatic emails about listing changes. The valuation zestimate is nice to have but I don't put a lot of faith in it.  Rather it is a decent benchmark by which good data (recent sales) can be vetted. 

I feel similarly for the the rental price zestimate.  I use that number as a first pass and confirm using craigslist.

County taxes should show the assessed value of the land separately from the property.  That should give you a starting price but not really a rock-solid number.  You should also be able to inquire with the county on tax forfeitures and auctions for vacant lots.  If any occurred then it will help determine the market price of vacant lots.

Alternately, use Zillow or something similar to find valuations of neighboring properties.  Find a way to estimate new construction costs ($200/sq ft?).  Subtract estimated final value from construction price.  You're left with lot value and profit.

Note, at least in my area, conventional lenders won't loan money for unimproved land.

Another vote for Ikea cabinets.  They've got a free design program that can be used at home or in-store.  They are well stocked.  Assembly is reasonable if you read the instructions.  Prices are very good if you go with the lowest-end facing.  Of course my wife wants upgraded facing so my price is usually 80% more than lowest possible.  We've done three kitchens with white Ikea cabinets (rehab, buy and hold rentals).