All Forum Posts by: Wes Shepherd

Thanks everyone for the responses.

I will be talking with the agent more tomorrow. I am also not sure why the owner would want to finance for thirty years. The agent seemed to think he would be fine with it.

Hopefully we can work something out, if not i have no problem walking away from it.

Single Family Residence

New furnace, plumbing, electrical ( Does not need any rehab work)

$25,000 Purchase price, should rent for at least $375. Owner is willing to finance 10% down at 6% for 30 years. Taxes are $500 a year and insurance would be cheap for me.

Here are the numbers :

14% Cap Rate

Total Monthly Income: $375.00

x50% for Expenses: $187.50

Monthly Payment/Interest Payment: $134.90

Total Monthly Cashflow using 50% Rule: $52.60

One benefit is this house is two blocks from my house, and is in really good condition.

What does everyone think about this deal? Regarding the owner finance; is it common to not allow prepayment? There is no way i would take this deal if i have to make thirty years of payments, i would pay off within 7. I am not sure what the common contract is.

Thanks,

Wes

Welcome to BP!

Thanks for your service and welcome to BP!

Welcome to the club Chris!

Good luck!

Hi everyone, glad i finally found this place.

I am twenty five years old, getting ready to graduate form Emporia State with a degree in Economics and a minor in mathematics. I have worked full time during my college career, so i could save money and purchase real estate. I currently own one house which i live in. I purchased my first home at 19, lived in it for a year and flipped it for a profit after making some repairs.

Now that i am getting close to graduating i have come to the realization that i really don't want to work for someone else my entire life. I have some construction experience; carpentry, flooring, electrical, plumbing. And i actually enjoy working on homes and fixing things. Therefore my goal is to buy as much rental property as i can, with the goal of making it a full time job. Emporia is a small college town, roughly 25,000 people so i am going to focus on college rentals. I plan on buying distressed properties, rehabbing them and renting them for the long term.

Some key things i believe to me being successful in this are:

1. Cash Reserves - I plan on having at least 3 months of cash reserves on hand for every property i own.

2. Property Selection - Only buying properties that i feel comfortable with the risk, and have concrete numbers on repairs etc.

3. Maintenance - I see a lot of rental properties around here that are run down and landlords do not care about the long term value of their property. I want to make sure repairs and maintenance are done correctly even if it is more costly. I am in this for the long term and will gladly take a little less cash flow if it means my property is being taking care of. I want to make this a career with life long income.

Glad to be here and I'm sure you'll be seeing a lot of questions from me.