All Forum Posts by: Tony McCargar

Jerry W., Thanks for your very good insight into this discussion. I have a couple houses in Farmington, NM which is an area that is still reeling from last administrations policies. Power plants closing, coal mines closing and further restrictions on oil and gas drilling. Took a year to rent a couple homes as there is such a glut with people leaving as there are very few paying jobs. One of my current renters is desiring to purchase one of the homes and I wasn't sure how to do it. Years back we did the AITD's but I think they are mostly fraudulent. This CFD looks like it would work best for myself and the buyer as well. Yes there are risks but most everything has some risk to it. This could be my out to this depressed area. I found a form online that I can purchase, do you think I should avoid that and hire an attorney to do it?

Thanks

That is a great calculation! I'm needing to do something similar. I have a house that has equity at 4.5% but if I cash out refi it will probably go to at least 6% and probably will not appraise at a 70%LTV. I have another property with a 1971 mobile that I put a loan on back when the market collapsed by my local business bank. However, it rolls over every 2 years and makes it so I can't sell with owner financing. If I could pay off the loan I could do a carryback and be the lender. Are there hard money lenders that will do long term 2nds that amortize over 30yrs but maybe due in 10-15? I did your calculation and my total ends up at 5.05%. Here is my dilema:

1. House 1 needs 30k payoff

2. House 2 is 1800 sq.ft rental with another 450sq ft rental. Valued at appx 210K

3. Have current 150k loan at 4.5%

An 8% amortized over 30 gets me into a payment that saves me 50 bucks a month over what the note on House 1 is. And combined with existing 4.5% loan the larger of House 2 will cover both payments. This would then free me to sell House 1 @ $80k with owner financing at 7-7.5% . Am I thinking clearly?

Out west you couldn't do that because of the hinge effect with roof load. You could just do scissor trusses or stick frame roof then come in so far from exterior and add collar ties type to the 10'. You would need to have the rafters speced by an engineer to avoid overload.

When they shoot acoustic ceilings they do not finish coat the taped joints so you will need to finish coat the ceiling before paint.

A trade magazine called "remodeling" comes out every year with a list of the best return on investment for remodeling. Just about every year the top 3 are Kitchens & Baths, Windows & Doors. However much you can do yourself of these will provide the best return.

If by angles you mean the degrees shown on your mitre saw when cutting on the flat side of the crown, I couldn't tell you. ( I'm too old....learned the hard way) If you can imagine this it will be super easy...."upside down and backwards". What that means is if you place your crown on your mitre saw with the edge that would be to the ceiling on table of you saw then rest the other on the fence it is sitting as it does on your wall to ceiling just upside down. Then backwards means if you are cutting the right end of crown feed from the right into your saw. Then all you do is set your saw at 45 degrees either way you need. For the coping you square cut one end then on the adjoining wall you would back cut 45 then use a jig saw (a real good one with small coping blade) and cut tracing to the finish of your crown. This can be a bit tricky for beginners. if you can clamp crown to bench so you can use both hands on jig saw it would help. Good luck!

Hi Rich, don't mean to bust in on a local question, (I'm not in your area), but I am a retired Kitchen and Bath dealer/contractor. I will 2nd that 2k us unrealistic but here is a suggestion if it works for you. Home Depot and Lowe's both have off the shelf cabinets that are a thermofoil type which means there is no finishing to be done. You would need someone to carefully layout new kitchen to those limited specs that are offered from HD & Lowes. If you can live with that you could get close to your budget. Go with new laminate tops as there are a ton of really nice selections. A nice topset sink and faucet along with some nice hardware and you'd be surprised at what that will do for a refresher. If you need any help or advice I'd be happy to help.

I just went through something similar. I have 3 sfr and was purchasing a 4th, my problem with the lender and qualifying was that my taxes show a loss (good for not paying taxes on income) as I have depreciation and loans as well as maintenance that are deducted from income. So the income that I truly am making doesn't show as income. How do you get around that? My lender wouldn't add back the depreciation. 

Get away from the "tiny home" model and look at "small house" or "cluster living". One good source for inspiration is Susan Sujanca (sp?) book "small house". I think that was the name. You would need a multifamily zoned lot, but I think this is what you are looking for. It is the best idea going for boomers and "granola" folks, but not for the financially thin people. Costs are on par with high end custom homes but when you multiply by the 800-1200 sq.ft. it becomes reasonable for us old folks.

Fix and Flips are geographically driven. There are markets that have as yet recovered from the collapse of real estate however a market such as mine,( resort, high 2nd & 3rd homes), never fell off more than 5-8%. That being said you need to know your market!!! I have been in housing industry for 40 years and the key is to find something that is below market and needs fixing. Which brings up abilities. You must be fairly adept at fixing, replacing and occasionally rebuilding. The best areas for recapturing your investment are kitchens, baths, doors and windows. Paint and wallpaper is good but don't expect a 1000% return on that. You need to have the ability to asses the property that is in need of repair if not you'll need a competent contractor that you can trust, maybe a friend that you could buy he and his wife a really nice dinner for looking at the home. Don't think a home inspection is going to give you what you want or need. Oh, and yes.....location, location , location