All Forum Posts by: Account Closed

When I look on graigslist I always see wholesalers trying to sell houses way above market value (I've seen them listed at over double the comps) and saying they're deals! I guess they're just fishing for suckers.

If you receive a company match contribute at least enough to get the match, otherwise your just throwing away free money. After that it's a personal decision.

I'm on schedule to max my 401k this year, but am probably going to decrease my contributions to save faster towards a rental. I've been struggling with that decision for a week or so now, but my accessible savings can't seem to climb past 10k so that's what I'm going to have to do to get enough funds together. Once I have some cash flow coming in from REI I'll max my 401k again.

Don't know how much cash you have on hand but you could pay cash for the multi, then get mortgage on your personal residence and once that's done, do a cash out refi on the multi. 

You will take a small hit on your score when you apply but it will go back up within a couple months of taking out the loan (assuming your paying all your bills on time).

Make sure you pay your credit card bills BEFORE the statement cuts, that way your utilization reported to the credit bureaus will remain low which will raise your score.

See if he will do it if you spring for a respirator and tyvek suit (should run you about $50-$60) or see if you can find another appraisor

I didn't read all the replies but I think where your located you could rent to growers as a business model and probably get quite a bit over market rent. 

You'd have to make sure the electrical system was capable (or upgraded) to handle the extra load, make sure the area being used is properly ventilated to prevent moisture issues, and talk to your insurance agent to make sure your covered with a grow going on in your rental.

You'd also want a solid contract drawn up, and I'd run it by a real estate lawyer and one familiar with the pot laws in your area (unless you can find a good one that knows both).

Frequent inspections should also be a must to make sure the tenant stays within legal limits and to verify proper ventilation and that the electrical system isn't being overloaded.

For buy and hold it seems most people look at cash flow, cap rate, and cash on cash return and make their decisions based on those #'s. Also, don't forget to figure in maintenance, vacancy, capital expenditures (over time it will need a new roof, water heater, ext.), and management into your expenses when figuring out cash flow.

@John E.  I believe to tag someone they have to have posted in the thread your tagging them in or be on your colleagues list.

This site right here is the best resource for learning about REI that I've found, and it's free! Poke around, listen to some podcasts, and read some articles. Then ask some questions, the people on here are very knowledgeable and willing to help newbies like us. I say save your money and put it toward your first property after hanging out here for a while :)

Yup, you can just put a lockbox up to let contractors in if you can't be there, preferably on a side or back door so as not to advertise to thieves that the house is vacant. I'd still try to be there when they show up if at all possible though.