All Forum Posts by: Tim Cooper

In my lease it states they will be charged $25 + expenses for returned checks. So they pay what my bank charges. I haven't had a returned check in years.

I did have one tenant one time I asked to pay by money order because of 3 bounced checks. They didn't stay much longer any way.

@Manuel Angeles Welcome to BP. BP is a great resource to get started. Read all the blogs and forum posts that you can, and listen to the podcasts. Also read all the Real Estate investing books you can.

There is no way someone can give you a definite answer to your question because there are so many variables; location, market, economy and most important your interest and ability.

That being said, a great way to start is a small income property, 2-4 unit and live in one of the units. It's a good way to get started with very little down and build up equity quickly, especially if it needs some work.

Tim

Hi Jason,

Great advise above. Another great source; listen to the podcast here on BP. Some of them talk about creative financing.

Where are you from in IL? I'm in central IL.

Tim

Sounds like you have a great deal there. Wish I could find one like it. Here are the things I thought of:

• Make sure you have the insurance company notify you if he quits making payments
• Your risk is if they would tear up the property and back out on the mortgage
• Make sure there is no due on sale clause on your bank mortgage. I've heard horror stories about banks later deciding to act on the clause and forcing full payoff, or the bank selling the loan and then the new bank calling the clause.
• Personally I would pay your loan down as much as possible, but that's just me. I hate debt.

Where at in IL?

If they have moved within the last year, you can endorse your cards with "address services requested". The post office will give you their new address if they turned in a change of address. Or you can always put "or current resident" under the name and hope the new owner is an investor.

Coop

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Hi David & Ashlee,

Welcome to BP. A duplex triplex or quad is a great way to start. Especially if you are going to live in one unit. Owner occupied financing is usually easier and better.

I don't have any experience with foreclosures or REO's so I can't help you there.

Please give us more information so we can help you more.

• Location
• Down payment
• Etc

Great topic. I have thought about doing this and then hiring a property manager so I don't have to deal with the problems personally. You can buy properties so cheap and with section 8 rent pay them off in just a few years.

Coop

Woops, I forgot the link to the list of the blog of good books.

http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/

Coop

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@Austin Richey Welcome to BP. Here is a good blog about what books to read. My favorite that got me inspired to start into REI many years ago when i was about your age, was "How I Turned $1,000 into Five Million in Real Estate in My Spare Time". I wish I had the internet and BiggerPockeets when I started investing.

Yes, a duplex, triplex, or quad can be a great way to start out.

There are too many variables to answer on the price.

• Your down payment
• Number of units
• Location
• Condition
• etc.

Coop

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