All Forum Posts by: Account Closed

Good job. How much is it currently renting for? What's the cash flow looking like?

Also to answer your answer specifically about lenders, the biggest problem with Wilmington are the ARV and values of some of the properties, especially in the inner city. You can find houses for $30,000-$40,000 all day long in Wilmington but they won't appraise for anywhere close to $100,000. Also the potential tenant pool is less than steller so that's a factor. It requires you to be savy and get your numbers right regarding finding deals hat make sense and if you could come out ahead, with either a flip or cash out refinance.

 I'd say figure out your risk tolerance than find out where you want to invest from there. 

Hello Sam and welcome!

Wilmington is a great place to invest in. You wont find much on the Wilmington board simply due to people not posting atm. If you want more information I would agree with @James Masotti and check out the DelREIA meetups as well as the facebook pages. Feel free to ask any questions if any come up. 

 My suggestion would be to know what you want and how to you want it. don't try to be friends with the contractors, they will simply try to get some leeway or take advantage of you, it's a business relationship. Just double and triple check the scope of work, that way if something doesn't go according to plan you have something you can reference. 

No experience with Las Vegas I have a c class property. If you put the onus on yourself to make sure you get a quality tenant instead of worrying about what they would do to this house it goes a long way. If my tenant up and destroyed my house or refused payment randomly I wouldn't blame anyone other than myself because I let them stay there. Also look more into section 8 if you want some type of assurance you will get paid. 

Contractors, contractors, contractors. You can read all the horror stories you want but nothing better prepares you than walking in your house one day to see contractors doing a horrible job, smoking while cleaning the house/wet paint on the walls, completely not showing up to job sites, something comes up and becomes more expensive. You can be a master of the numbers but managing people is something you have to experience first hand. Learning how to properly describe what you want, tell someone they did a bad or incorrect job and finding ways to rectify and issue. These are thing you can go your whole life without experiencing. And let me tell you that is something that transfers into everyday life. I promise you will learn more on day one of owning a rental than anything you're currently doing. At least for me.

Ask him if he's willing to seller finance. Offer a down-payment just like a normal loan, anywhere from 0-20% down, a 0-5 year balloon and and monthly payment amortized over 30 years at ~4-10%. The reason those numbers are variable is because it's ultimately up to the seller what you offer. If they want a higher down payment you can offer more on that but increase the balloon period and lower the interest. If they're looking for more cash flow you can offer a lower down payment with a higher interest rate.

Biggest thing is to try to find out why the seller is selling and what their needs are with a deal. Podcast episode 344 goes over this in great detail. 
 

Not sure how you're getting comps but for starters Zillow isn't enough. Not familiar with total view either but you should be using recently sold properties exclusively in your research. I use Homesnap.com map feature for this because they have by far the best interface.
I'm not familiar with wholesaling and finding investors so on that end good luck. 

I'm not sure where you're financially but your best bet is to simply learn as much as you possibly can and try to save towards a down payment. It's a marathon not a sprint. People are always talking about how young I'm investing (25) but that doesn't take into the fact the years of research that went into me getting ready to pull the trigger. For you it may even be shorter. You should try to identify 3 things.

1. Where you want to invest and why.

2. Ideal price point to invest.

3. Rent vs flip.

It's up to you to decide your future, good luck!

Yeah I've considered it. I want to wait a little bit before I go down that road. Get my amount of properties up first.