My plan is to take advantage of this real estate opportunity to both buy a larger property and hold onto my current home on as a rental.I have a fixed 30 yr @ 5.85 on my property that is worth about 555k.

I’ve dealt with one bad tenant that did some dumb things like set an iron on new carpet in a bedroom, stained several spots in the living room, broke the lease and left early, etc… ended up keeping her security deposit so the damages were sort of evened out.

Since basis can decrease faster than debt (due to depreciation), the fraction can increase over time.Any sort of active income, such as running a factory making widgets, is also subject to UBIT.

i need to put together a packet for a local mortgage company and am curious to know what sort of offer to put in on the house assuming 10k of rehab costs and a conservative fmv of 360k after 10k of rehab.using 70% tells me that my target price should be 252k.

If you are using a conventional loan to purchase, the bank will require a title policy.If you are purchasing on a lease/option or land contract, you will want to record a memorandum of lease, lease/purchase, or if it's a land contract, you will want to record some sort of memorandum referencing the land contract that will cloud the title in the future (to your benefit).

It's bank-owner, has been on the market for 2 months (previous owned tried to sell it for over 6 months.)It's in a decent area, and comps that are larger and in better shape have sold for $190K or so.

A company called Prepaid Legal is contracted with KROLL right now selling a monthly membership through them as well as other sorts of protection for as little as 12 dollars a month!

You can take an apartment building with problems say 40% occupancy and deferred maintenance and bad tenant mix and management problems and use commercial hard money.You will have to figure in the high debt service while turning around.Once stabilized you will refinance out at the new value up to a certain LTV.Take the money and do it again.The larger the project the more the potential ARV spread after stabilized but the more risk.The larger projects take more time to turn around so the churn rate on the money is slower.What happens and I have seen this is people run out of money and the property is taking longer to stabilize than thought.Then you have some money left but not enough to take down a property yourself until you unload this other deal you bought or refi.You then start partnering with different people on different projects which can lead to a mess.You don't just want to grow out of impatience or doing more deals and then get involved with the wrong people or overt extend yourself.You want smart,well thought out,controlled portfolio growth that is highly calculated.

Its not at all difficult to do exactly that, especially if you start leveraging that money or you invest in any sort of leveraged private placement.

I am sure you have all sort of spreadsheets and formulas on your PC.