All Forum Posts by: N/A N/A

Thanks,

I understand the relationship between the points/rates, but wasn't sure if it was a descent ratio.

All good info too!

Anybody pay for access to this website. I am considering but seems spendy at 39 bucks a month. I am new to REI and having troubles finding discounted properties.
I haven't been to my local REI club yet, but I would hope the proerties listed here would be at least better than the MLS. Or is it the same???

Thanks

Any opinions on renting SFH in small college towns? Pros and cons?

Lease issues with dealing w/ summer school while students leave...
Or even good ideas or incentives that could attract students.

Do you rent rooms as opposed to one lease covering all tenants or a lease for each tenant ?

Thanks

I am in the market to buy some rental property and had a credit check done to see what kind of interest I can get approved for.

Anyways, my agent who is also in the mortgage loan business found Wachovia bank to be my best deal.

My credit score was 800 on all three reporting agencies.
This would be a loan for a rental SFH.

House price 119K
10% down
1% loan origination fee
3.5 points
6% interest rate
as of two weeks ago..

The fees seem too high to me.

Why such a tough deal on this loan? Is this average?

Where can I get better.
Thanks

So, If I bought a house in Texas for 100k 3/2/2 and rented it for ..I dunno $1000 a month. I would need to rent for another 500 to cover expenses. Using the 50% rule of thumb.

Then I bought a house in a fancier neighborhood in Texas for 200K but was still same size 3/2/2 and I rented it for $2000 a month. So using the 50% rule I will have to rent this house for an additional 1000 so to be half of the monthly rent to cover expenses.

So other words, the morgage is obviously different. But expenses?

Same house same builder, but because the dirt/lot in the fancy neighborhood was more expensive how does this increase expenses. New roof still costs the same either house.

Ummm, after writing this it appears I would need to use this extra expense for vacany? But the analysis tool accounts for this. Right?

I dunno, I am just a newbie, but rules of thumb were developed for a reason and I can see how things like this would be hard to understand especially for somebody Like me who has always thought you need to rent to cover the mortgage and all is good.

Of course that was before I found this site and started to research more and more about the true costs of being a landlord and all the challenges that come with it.

Just starting out and having troubles finding properties that will cssh flow. Any "bird dogs" or other folks out there with any leads. Going to the next local meeting in Houston, I'm sure that will help.

BTW, what to wear to these meetings? Business casual? Suit? Slacks/button up shirt?

Thanks!

I wish I were your agent. I would definately tell you to buy it. I don't trust any of them. At least I haven't found one I really trust. Now, like yes. I do like mine and others I have delt with. But I dont trust them. I guess I just never really understood what they are good for other than running comps and opening the door pad lock. The numbers will fall in my lap long after their comments. Besides, tell her to buy it then if it's so good. I would rather have her commision than that property.

I am new to REI. Only because I haven't found a property to cash flow, and from what I've learned so far that means finding a property at a discount rate or below market. I can go out tomorrow and buy a 9 unit and I would love to but that damn property analysis tool keeps telling me don't do it. I even try to fake it and put numbers in to make it work. Damn thing. Keeps tellin the truth.

Anyways I wish you luck. No real good advice here from me but a cheap shot at realtors. :mrgreen:

to ALLCASH. I have been reading alot of your posts. What you say about Texa is spot on.

Must find property at really discouted rate!!

Well, went and looked at 5 houses today. A little bit of everything, from fixer uppers to move in ready.

Taxes in Montgomery County are about 2.3-2.7. So yes definately high but not as bad as Harris.

The one I was most interested in which was listed for 65k may be a little more than I bargained for. Looks like poor drainage in back of home may have caused water damage. Water is tough to fight. It is only 3 miles from my home so I am waiting for the next big rain to go check it out. Not sure how flexible banks are in their asking prices either. Guess that will marinate a little longer also. If it was such a great deal it won't be around for long, and in that case I can watch and learn maybe to see what this property turns into. There will be others.

In other news there is a great 3/2/2 in a great neighborhood. The home is move in ready other than repainting the living room and kitchen walls something a little more neutral. My numbers are being run now to see what kind of financing options I have and to see if it can be a positive cash flow.
Question? How much higher will my property tax go up in % when the tax man finds out it is rental property? I think this is a Texas thing.

Nobody said this was going to be easy. All of my numbers seem to be close to breaking even more so than pos cash flow. And of course the vacancy can really swing it in the wrong direction.

I am not trying to get rich overnight. But I do need to get my feet wet in this game and see if I am cut out for it or not. Besides, I can blow some money on a boat right now but I want to own property instead!!

First of all this is a great forum to learn from. I just stumbled across it and have been reading page after page gathering info. With that being said , I am very new to the game of REI and also very excited.

I have been looking for properties for some time and found a few I will visit with my realtor tomorrow. I have a well paying job, over 700 credit score and no CC debt and about 10,000 cash to invest.

I am looking at a property that is a forclosure and lists for 65K. Ugly house on the street no doubt. It needs work for sure, how much of course will be the deciding factor if this could be a good deal or not. I am not sure if I want to rehab to sell or rehab to rent. There are other houses on the same street that are nearly identical that are listed for sale for 92K. Three of them actually by the same agent/realtor/investor? And all of them need updating (80's style).

So tomorrow I will at least have a look. I need to figure out where and what kind of loan to pursue, an inspector, contractor to give estimate.

My agent has alot of knowledge and will be very helpful in the process.
Also another 3/2/2 rented on the same street for 950 a month and is basically same type of property.FWIW.
I am hoping to use the rules of thumb I have learned from this site. Not sure what it's called. 70% of approx value - rehab costs?...Basically 45.5K minus rehab costs. Ouch.
Any advice is appreciated. Will supply more info if needed. Thanks!!!!