All Forum Posts by: Tammy Vitale

I'm really interested in your experience with Hubzu.  I buy and hold rentals, mostly through scouring the area and knowing what I"m looking for (and now I'm an agent so it makes scouring easier as well as getting in to see when I want), and have been to a live auction, but have been a bit leary of the on line ones.  Would love to know more about the process.  Am willing to share my info on rentals, tho I niche rent the bulk of my houses in the recovery/sober house community working with my son.  Having a niche has been very successful for us.  It helps us better target what we need in a rental house so we can be very specific when we are shopping.

So putting properties in an LLC closes down possibilities for them in terms of pulling out equity if you can't find a portfolio bank? Does a personal guarantee (which I understand) help pierce the veil that the LLC is for in the first place? thanks.

Son just did a full rehab on a house for me in Central Florida.  He doesn't hang out here so I sent him your question and here's what he said:

"My cost to paint would be $7650(1.25 sq ft inside/ 1$ outside), u can expect 3$ish sqft flooring depending on materials types, cabinets range from about 3800$- to nearly 20k installed for a set. And ask Lowe's what rock cost per Sq ft I don't remember but that price 3k ish sounded about right to me. [Note, he had a painting business in Central Florida years before he started working with me - his cost would include paint as well as labor- and he knows a lot of trades people]

When we hunted ac for (my 2nd) house, prices were 3300 to 4700$. We got the same deal for 1800$.

Is installing base and trim work coming with the floors? Who's doing that and where is the cost. I could think of several more detail items missing in his cost analysis.

Backsplash and cabinet handles to name a couple."

hope that helps

If you plan to keep it after you move out of the area, be sure to figure in property management costs when you do your figures.  

Personally, I'd opt for buying simply because you have to start somewhere, and if you have a property for two years, then when you buy the next one you are an "investor" and conventional lenders (or at least my conventional lender) then figure not just your income but add on the potential rental income from the property you are buying to arrive at ratios for lending.  And when you move, you'd also have the option of trading property for property where you're going (I don't completely understand that but I know it's doable as I have a friend who did it).

Smart man to realize that fear of failure and fear of success wind you up in the same place.  That's a big acknowledgement.  What is the first baby step you could take towards your dream?  and then the next one...one baby step at a time will keep you from being overwhelmed.  Try listing all the baby steps and then do them one at a time not thinking about the rest.  When you get scared (either way), talk to your mentor!  Important to have one or two people outside of the mentor who are your cheerleading team - that might be your first step.  Good luck!

I agrfee with Bob. I go in knowing what I'm willing to pay and hold at that. I lost a house in Florida to an all cash bid - we offered the same. It needed a roof and I figured that into my bid. The cash person expected the bank to drop the cost $15K for the roof and when the bank didn't, the cash person backed out. I had moved on and was up against a cash bidder again, REO. We both offered asking. They gave it to me because they felt I was a better risk. You just have to keep knocking on doors - sounds to me like the bank wants to run the price up. Are you losing other opportunities by waiting? If not wait it out.

This isn't exactly what you're asking but let me share a similar scenario.  I bought a house in Florida (I'm in Md) which son rents from me at$300 over the mtg.  He has 4 bedrooms (made 3 bedroom into 4 b edroom).  Rents out 3 bedrooms to roommates and basically lives for free.  Meanwhile, he plans to buy a house as an investment to set himself up for conventional lending investment where after you have managed a rental for 2 years (showing on your tax income) then when you next buy, as an investor the potential income from the house is added to your actual income.  At that point he moves into the house he bought and buys andrents the new house and rents out his room in my house.  That's the plan.

Hi Patrice!  from Southern Maryland. 

have you tried using MeetUp to get folks out?  Works in my area (southern Maryland)

I have a property that I could only get a 15 year loan on because the dwelling was literally a shack.  We fixed it up for ourselves and then later (and now) rented it.  I refinanced to buy another rental and did it for 15 years.  And then I refinanced for 30 years because they'll now give me a 30 years loan on it.  Both times I took out equity for another house purchase.    My decision was based on letting my money work for me instead of just sitting there.  Also, I am older and if either my husband or I get sick we might not be able to refinance and then all that money is sitting there out of reach.  Now it's working for me in two other rentals that are making me good money.