All Forum Posts by: Thomas Heil

Okay I was afraid of that, I guess I should start trying to find an investor. I'm not sure there is enough meat on the bone to make it worth it. What do you think? I was just trying to aim small for my first deal in case I foul it up. Maybe this would work better for me to try to wholesale? Or maybe it's not the deal I thought it was and just move on to the next one? I have reached out to a smaller local bank but I have not heard back from them. My thoughts are that maybe if i build up a reputation with a smaller bank they would be more flexible with me.

Thank you!

-Tom

Okay I thought maybe I needed to include that. lol

2 bed 1 bath half a double single family.

I can get this property for 27.5k, It was appraised at about 29k before any work was done 4 years ago. Comps in the area are going for 30k-44k on the high side. So my guess this would be worth somewhere between those numbers and most likely closer to the higher end considering the condition. My target rent range would be around $600-$700.

I am just trying to get all my ducks in a row before pulling the trigger if I even can.

Thank you

-Tom

Got it, thank you guys!

Would it be a good idea to refinance my first buy and hold to use the equity to put towards other deals? I'm not sure if it would be possible to do right away but if I close this buy and hold deal I should walk into some equity. It might affect the 2% or the 50% rule would be my concern. Any thoughts?

Thank you

-Tom

Would I benefit from having a LLC after getting my first buy and hold?

Ok thank you that makes complete sense! So I guess I really need to start at what the house would actually rent for by finding good comps. Then work backwards from there. I was told not to charge less than $650 by a local and after running some numbers on a 15 year mortgage it looks like my monthly mortgage payments would be about $150-$175 not including taxes or insurance. That actually raises another question though. I was thinking about making double payments to pay off the loan asap but maybe I should keep that money available for repairs if needed? Your input most likely saved me from a pretty big mistake lol.

Thank you for all the help!

-Tom Heil

wow this is great info! Thank you guys for the advice. I ran some more comps last night and it looks I should be able to ask $700-750. Hopefully that is accurate, I have been in the house but I want to drive the neighborhood this weekend to get more accurate comps. @ Shaun Reilly can you break down the 50% rule for me? I'm not sure that I understood how that one works.

Thank you all!!!

Tom

I found what I think is a great deal for my first investment. I work with a guy who told me today that he NEEDS to get out of his house. It's a low income neighborhood but not the roughest neighborhood. He is current on his mortgage but wants to move closer to work. He had the house on the market but it seems like it is too nice for the neighborhood. He has made a lot of improvements on the house while living there. He told me today that he is not looking to make any money off the house at this point he just wants it out of his name. He was asking if there is a way for him to just sign it over to me and he would even pay me rent until he found a new home to buy. He pretty much just needs it off of his credit. He pays under $300 for his mortgage and local rents are around $550-$650 for the neighborhood. What is the best way to go about this? I would like to work with an investor since I don't have a pile of cash or the best credit right now. He only owes about 28k. Any help or feedback will be much appreciated!!!

Thank You,

Thomas Heil

Hi thank you for responding!

He told me today that he had it appraised at 28k about 4-5 years ago after he paid 21k for it. He put a lot of work into it since then. The homes in the area sell for around 20k to 45k. He had this on the market with a crappy Realtor that did very little marketing for him. It is currently off the market. I think this would make a great buy and hold according to the 2% rule. I am so new at this but I am super pumped about trying to make this deal.

Thank you,

Tom

I found what I think is a great deal for my first investment. I work with a guy who told me today that he NEEDS to get out of his house. It's a low income neighborhood but not the roughest neighborhood. He is current on his mortgage but wants to move closer to work. He had the house on the market but it seems like it is too nice for the neighborhood. He has made a lot of improvements on the house while living there. He told me today that he is not looking to make any money off the house at this point he just wants it out of his name. He was asking if there is a way for him to just sign it over to me and he would even pay me rent until he found a new home to buy. He pretty much just needs it off of his credit. He pays under $300 for his mortgage and local rents are around $550-$650 for the neighborhood. What is the best way to go about this? I would like to work with an investor since I don't have a pile of cash or the best credit right now. He only owes about 28k. Any help or feedback will be much appreciated!!!

Thank You,

Thomas Heil