All Forum Posts by: Tim Herman

@Rachel Latham I don't know Illinois law but most leases have to be honored. If you are going to pay retail for the property in a year he will make more money by not paying a real estate commision by selling to you. You pay a nominal option fee and lock in the price. You other option is FHA loan with 3 1/2% down and buy now. Just for your information use the @ sign before the name so they are notified when you reply.

Try an option if you don't want to move. Agree on a price to purchase the house in the future one or two years. Make sure your credit is good so you can qualify for a loan. You can check at the assessors office for liens and taxes. 

https://www.biggerpockets.com/blog/2016/05/26/annualized-total-return/ has an explanation. You are correct that year 31 mortgage payment would be zero. 30 years is a long way to project (WAG wild *** guess), but if you want more just input the numbers from year 30 into the calculator using it as a all cash purchase,

I have been SFR investor in the areas that I have lived. CA, ND, SD, MN and PA. I am looking at Indianapolis for my next investment.

https://www.realtor.com/news/trends/2019-housing-markets-poised-to-take-off/ These are the markets that realtor.com says will be the hottest in the nation. You have to take all these lists with a grain of salt. What ever you do it is not about price but cash flow for me. Good luck

A realtor in your area will give you a free comparative market analysis of what your property can sell. If you are willing to invest out of area should be able to get better cash flow.

I don't know if you will only have a vacancy of only 1 month before you rerent. Are you going to evict the tenant? Only $5000 in repairs. Repairs 2%. Just replaced a hot water heater for $1200. That's 40 months of your repair budget. 2% capex would be 20 years before you could replace a roof for $7000. You have not figured any carrying cost. I've not used a hard money lender but reading some of the other posts 2-3 ponts and 10-12% interest. Rework your numbers and see if you BRRR the property

@Mark DiRocco playing with the calculators it looks like a good deal https://www.biggerpockets.com/calculators/shared/1107726/a1feaece-cd62-4d5c-af10-82dd9029b54e15% cash on cash return with the assumptions I made Taxes 2500 and insurance 100 per month.  If you upgrade to pro you can use the calculators to analyse the max you can pay click on the link and you can see the analysis.

@Mark DiRocco you don't provide enough numbers to help you answer the question, Rents are $2500 gross or net, big difference.

Haven't tried it yet but Naborly  is free for landlords and does screening,credit and criminal checks.