Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ed L.

Ed L. has started 43 posts and replied 449 times.

Post: Variables in the 50% formula...

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

I purchased a nice older home that is located on the same street as one of my current rental homes.

My original intentions were to flip the home and re invest the profits...

I'm confident it will sell, but I've also contemplated keeping it as a rental due to the location, and the fact that it would be a low maintenance home.. Brick/vinyl, new roof, New HVAC, New hot water, new appliances, new windows, solid surface floors.

I'll have $68,000+/- invested.

Rent will bring $1,000 monthly x 50%= 500

$68,000-----15% down payment-----4.5% interest rate-----20yr loan= $365 P&I

Cashflow of $135 monthly= 1,620 annual or 15% cash on cash return...

My question is... When using the 50% to evaluate properties should I be using a 15, 20, or 30yr mortgage???

If the 15yr mortgage is used the property is just cashflowing $50 per month.

20yr Cash flows $135.00

30yr = $200.00

Finding cash flow properties with a 30yr mortgage seems should be easy if my math is correct. 15 yrs gets to be a bit harder.

Post: Getting equity out of a credit card

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

My wife uses a combination of credit cards and a unsecured LOC to fund her ebay business.

She always pays the CC off at the end of the month, but will let the LOC carry a balance due to the interest rate being 5%...

She will probably do 1/4 million in sales this year...

We got a whole lot of skymiles lol....

Post: Need an alternative exit strategy for potential $100K investment

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

I 2nd J's idea...

Seems like a great ROI even with the murky water surrounding condos at the moment..

I sure wish I could snag a condo at the Whalers villiage in Maui for 30K... If anybody has one I'd be willing to pay a great finders fee lol..

Post: What to invest 20k in to start a business?

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

Leverage the 20,000...

If you have good credit, and proof of income you could use the 20K as a down payment to start flipping....

My goal would be to buy a property in the 30-40K range in my market..

Do a secured line of credit with the property as collateral. Bank will loan funds to renovate...

20K can turn into 40K easily with leverage and a good eye for deals..

Research, Prepare, Inspect, Buy, Restore, Resell...Repeat...

Post: Highest and Best

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

I hate highest and best situations... AS a agent and investor I know both sides, and both are somewhat unpleasant. Banks can be greedy pigs..

Latest one as a buyer I offered full price cash offer on first dom...

Bank came back at 4K over list price.... I told them I'd pass... They can GFO.....

Post: Your Toughest Deal - What Was It? Share Details!

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

Back in 2008 I had the biggest deal of my career at that point... All I had to do was sell this piece of land..

Long story short I had 5 different contracts fall apart for a plethora of obscure reasons...

I finally procured a ready, willing, and able buyer and then the title issues came into light....

3 months later we finally found a attorney who would provide title insurance on the property....

It was all worth it in the end..

Post: Anyone moved a house??

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

I found a nice tiny home that the present owner built on family land.. Guy is moving to Miami and needs the home moved off the family farm.

It's a raised foundation 1br 1ba built 2 years ago... Shingle roof, vinly siding, pella windows..

Nicely finished on the interior. Just needs counter tops finished in kitchen.

Approximately 10 miles from where it's currently located I Have a site already with utilities.

Nice small town with a community college and very few rental properties. Should bring 400-500 per month once set up..

Asking price is 4,500. I'm expecting to have 10,000 invested after move and setup..

Just wondering if anyone has hassled with moving a house before.

[imghttp://img221.imageshack.us/img221/4084/photo3ocu.jpg[/img]

[imghttp://img803.imageshack.us/img803/5769/photo4wu.jpg[/img]

[imghttp://imageshack.us/photo/my-images/638/photo5hf.jpg/[/img]

[imghttp://imageshack.us/photo/my-images/109/photo4ye.jpg/[/img]

[imghttp://img3.imageshack.us/img3/221/photo2si.jpg[/img]

[imghttp://img12.imageshack.us/img12/192/photo1kq.jpg[/img]

Post: Any very young investors out there?

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

I feel like a middle age under achiever after reading this post lol... I know this post started back pre-bust. I hope everyone weathered the storm.

I'm 24 as of writing this...

My first real estate deal was at 15... Sold a 5 acre parcel on the Pearl River.

Bought my current home when I was 17... Had to put title in parents name due to being a minor.... Couldn't claim Homestead and had to eat a 3,600 property tax bill for 2 years...

Became a licensed agent at 18.

Sold property while working on my Business degree...

Did a land deal that netted me a decent size parcel of land as profit..

Used the land as collateral to purchase a 9 unit commercial mall. Which I now operate my brokerage out of.

Real Estate brokerage doesn't make beans, but it pays for my assistant, advertising, and I usually keep 100% of my commissions unless the accounts are running low...

Purchased my first sfr rental last year... Paid cash for it, and it's been a great investment so far...

Also have been flipping a few houses for extra money.. Goal is to buy the houses cheap enough so that they can be converted to rental if they don't sell in 6 months... Haven't had to convert any yet!

Really would like to get into multifamily, but my local market seems to be wayyyyyy overbuilt with apartments...

Post: stalling bath tile

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

I tend to lean towards Jeffery K's school of thought.

As a investor my time is valuable. I would value it at approximately $50.00 per hour.

A decent tile guy should about $15.00 per hour. There's a $45 savings.

Not to mention it will take 1/2 the time to do the job.

On top of that you can expense the labor cost from profit to reduce taxable income.

Post: Do you add a fridge to your flips?

Ed L.Posted
  • Residential Real Estate Agent
  • Hattiesburg, MS
  • Posts 475
  • Votes 141

always stainless... cost is minimum, and buyers associate stainless with being expensive.... 'even if its just cheapo frigidaire"