All Forum Posts by: Tim S.

Read “Bulletproof Due Diligence” it covers just about everything you’d need to do. 

Depends on your objective. I want to minimize taxes, so I’m happy if the property pays for itself with little cash flow. Especially on higher end properties B+ or above in appreciating markets. 

For lower end properties in flat markets I’d be more concerned about Cashflow, and would want at least $200/mo  

@Casey S.  I think you have made the right moves.  If you can easily get new tenants at this late date I'd try to do that.  If not, you should enforce the lease, you should have an attorney look at it.   Ignore Steve, his comments are not helpful or constructive. 

@Chauncy Gray  A book you might really be interested in is, "Invest In Debt", by Jimmy Napier, if you like to play with numbers as it seems you do, that book is really eye opening. Check it out. 

Agree with Chris, you have to think about the long game.  If you start the relationship off on the wrong foot, you are going to have more problems down the road, they are going to complain about every little thing.  I think it's a BIG mistake to pull the lawyer card, you are just escalating the situation and creating an adversarial relationship.

Your next tenants will likely come from friends of your current tenants.  Word gets around, kids talk, social media rules, you don't want the reputation of being a pain in the *** landlord, it will hurt your future ability to attract good tenants.  Be fair, don't let them walk all over you, but think long term.   Offering one months rent sounds good to me. 

I can't imagine in any market student housing would fetch 3-4X the market rate.  Maybe a small percentage higher price, 5%?  No sane investor would pay such a large amount over market.   There must be a mistake in the information, or the interpretation of it. 

@Louis Porter Jr.  I used Highlands Mortgage, Graham Parham.  

Usually you can only get a mortgage for 75% of the purchase price.  Banks are not very motivated to make such small loans, it's the same amount of work to issue a $150k loan as it is to make a $70k loan, so they may put some hurdles on the smaller loans.  

I recently got a $130k loan on a house I purchased cash, there was no waiting period. 

To clarify, if you are limiting yourself to only the local banks in your area, your chances of landing a deal will be very very small.  Most people are calling lots of banks all over the place, not just banks local to them. 

Chances of buying notes from your local bank is slim to none.