Don't fall into the trap of many CA investors who fall in love with TX prices and assume that rents will follow.I can show you sub-divisions with a lot of CA owned rentals, all of them at negative $200 PLUS per month rent.

. ($350)One is on social security and is disabled – other pays rent cashiers check ($275)Unit mix 2 x 2 bd/ 1 bth Here are the numbers:Price $26,000 (they will only accept cash) I can come up with about 10k in cash but would have to take a personal loan to cover the restGross Rent: $7,500 (100% occupancy consistently)Expenses –A) $1975 (owners claims with property mgt included)OR –B) $3000 (if I assume a 40% of rents =expenses) NOI:$5,525 (if use A expenses)OR$4.500 (if use B expenses)Even if I was to 100% LTV at a $26K price at approx 7.5% Annual Debt Service would be: $2340So Annual positive Cash Flow would be: $3185 (if expenses A – owner claims) (or $265 a month)OR $2160 (if expenses B – using 40% of gross rents) (or $180 a month)Repairs known (before property inspection) needs new exterior and interior paint (additional $1,500), Roof is approximately 10 years old The money seems small but consistentDuplex Located in Buffalo, New York There have been a lot of foreclosures in that area – some I can tell were investorsOn the plus side, these tenants don’t seem like they are going any where soon.

(let's assume I have a buyer)I go get my buyer to sign a purchase contract?

I assume (already in trouble, aren't I?)

Am I right in assuming this would be the best way to go without have to have a preapproval ready to go, especially as I don't know the propert(ies) I will bid on.

Sorry, my mom is a Shakespeare buff and she would be proud :lol: So I was just about to go to the County Courthouse to file for an Assumed Name(DBA) but now I'm considering starting an LLC for multiple reasons and I'm curious as to what your opinions are.A little about me:I have not yet done a dealI have been studying for some time and I'm ready to get startedI have every intention of doing this full-time but I will not quit my day job until it's a realistic possibility(1-3 years)My only assets are my house which is homesteaded and a car with 100,000 miles and serious hail damage so I'm not concerned with asset protection at this pointI am interested in wholesaling/rehabbing(rentals in the near future)I have $10K-$20K startup capital I will be using Hard Money for my first several rehabsI have excellent credit (771)I am now thinking about starting an LLC in Texas(one-time $300 filing fee)for my rehabs because I want to build up business credit and season my company so I figure I might as well start now.Once I acquire rentals I will definitely setup an LLC but that is not an issue yet.Given the information, should I form an LLC or just do my first few deals as a sole proprietor and then get my LLC?

we have an attorney.the bank seems to be upset because of our choice, i can't understand why they assume we will delay the closing. they say they will be ready for that day, that they want a timely closing and want the signed contract as soon as possible-but the contract is in the attorney's hands and we haven't seen it yet.we will wire a x dollars deposit on monday ( to the attorney for escrow acct,that I don't know what is :oops: ) and they seem to be in a hurry...i feel really uncomfortable with thus deal...bye byemichela

Which include closing on the initial purchase, rehab, commission on the deal if I have to list the property, closing cost for the new buyer and then I assume the lowest recent comp with all variable being the same.

I go door knocking during the week from 5-7, so I assume that is the best time to cold call.

(assuming they don't look to busy or come off as angry or irritable) I tell them I am interested in buying property in the area and then just chat for a minute and give them my card.