I understand that a higher debt balance would lead to a higher effective interest rate but i do not understand how the loan term would change (unless the buyer opts for the same monthly payments before and after the capitalization of the closing costs)

Getting new investors questions answered and helping them select the best property that fits their criteria.

A 4 or 5 br house would probably fit the bill.I see the property taxes in Texas are high, but how are they determined?

They fit my investment strategy and my personality.Everyone has their own investment strategy and on a forum like this, there are a lot of successful investors making their money doing different things.

As I am certain you know, there are many factors involved and I would have to believe that a market strategy would be relative to the particular place in the market where the home fits.

The rates are supposed to be effective on loan closing starting nov 18 2011.

This sounds expensive to me.If you have to replace the outlets and covers in a kitchen you might have 10 bucks in cost and it certainly doesn't take 2 hours.You put a reader in the plug and hit breakers if not marked until it shows no power.Then you simply find the disconnected plug and replace.All of them should not have to be replaced.Now if they replaced some breakers on the service panel 130 is not bad because depending on the panel just one breaker can cost up to 15 bucks a shot.You want to use the same brand breaker when replacing on the panel.If you use and off brand or try to make on fit and then and arc or fire happens insurance will not cover you or pay the claim ."

I have the seller sign a Letter of intent to Lease and To OptionThe letter of Intent covers...Address, Rental Term, Renal Payment per month, Security Deposit, Possession Date, Option Sales Price (could new appraisal), Option Money (usually 3% or $5K min), Representations, Warranties, Covenants, and Indemnification, Legal Effect, Notice of Intent to Assign, Option Period (45 - 60 days)I have them sign the letter of intent (LOI), it goes to my attorney, and the attorney prepares the paperwork.There is an option release disclosure document that discusses that the buyer will be responsible for the following fee’s to be paid out of escrow at closing, which are for the release of the recorded notice of option, the assignment of negotiated purchase price, and the negotiated rent.2.

I wanted to add the cost I said for your kitchen is based on having to do primer and and 2 coats to cover the blue.With my units I am going over white that is worn down so I don't need as much paint to cover a larger area.Some nicer quality paints are mentioned in some other posts which I can see using in a flip or a really upscale high end rental area where the tenant demographic is different.For rentals I use paint that is cost effective and will pop and carpet that is made for wear and tear for the type of tenants I have.All they usually care about is it's "fresh and clean".

I'd love to have a bunch of 3/2 rentals but the higher purchase prices in my area don't fit my current plan.