Advise needed - Posted by tiocoki

Posted by waynepdx on July 02, 2002 at 02:11:55:

But you gotta give the guy some credit (even though he didnt do all of his homework).

He is going to be in a great position whats he gets this albatross off from around his neck. He has probably learned more from this experience than he ever wanted to know.

I commmend him for getting out there and taking action, albeit negative cashflow, but it is allot better than people that just sit and read and read and never overcome the fear to just do it.

Advise needed - Posted by tiocoki

Posted by tiocoki on July 01, 2002 at 03:25:30:

I introduced my self a couple of days ago as a new investor, after reading so much for last 6 month, i have decided to start doing some thing

I purchased my first rental home through a realtor i know

Purchase price icluding costs and repairs=236k
FMV 265K, Ididn’t know what to do so i rented it in 3 days (BIG DEMAND, IT IS A NICE HOME) after closing the deal

i had no money, i used line of credit for downpayment

my problem:

rent icome= 1600
plus any tax beneftis and depreciation

i leased it for one year, my question is do i hold it or sell it to create cash and maybe get positive cash flow in next deal.

i have alot credit,i was pre-qualified again i want to continiue do deals and hoping that at one point i could find what works for me HOLDING OR FLIPPING OR BOTH.



Thank you



Re: Advise needed - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 01, 2002 at 21:12:41:


To bad you leased the property. Your renter can stay for the full year of the lease. In CA, it is always better for the property owner to rent out on a month-to-month basis. I learned that in a course I took before I bought rental properties. Sounds to me as though you jumped in without knowing much and made some mistakes.

It may be very hard to sell this property until about one or two months before the lease is up. Owner-occupants, the people who pay the highest prices for houses, probably will not want to buy and wait many months before they can move in. At least not very many will.

Thus the demand will be low. Low demand means a low price to be able to sell. This is not good for you, since you are the seller.

If you could get the renter to agree to move soon, that would be best for you. It might even pay you to “bribe” the renter with some cash to move out. Or your extra car, or what would the renter like . . . ?

You do not tell us your situation. If you have a regular job and thus pay taxes on your salary, you may be able to adjust your stated deductions so that less money is withheld from your paycheck. That would give you more money with which to pay the expenses on the property, allowing you to carry it more easily until the year lease is up.

Do you suppose you could cut down on your expenditures? I have eliminated all magazines that I used to read, that saves a little bit. Don’t dine out as much, prepare your own lunch. Eliminate the cable TV–after all that is probably why you’re in this trouble in the first place, isn’t it? You believed the cable tv real estate huckersters. Isn’t that what happened to you?

You might try to find a second job, even if it is only parttime. Can you boost your overtime hours on your job? Sell off personal possessions you don’t need–the surfboard–you’re getting to old for that anyway. The vegimatics in the cupboards.

Marry somebody who is hardworking and has a good job with $500 a month left over after personal living expenses.

You are learning lessons, aren’t you? Some the hard way. I recommend reading lots of books, to help you cut down on the errors in the future.

Good Investing**Ron Starr

Re: Advise needed - Posted by T.C.

Posted by T.C. on July 01, 2002 at 12:57:18:


Sell it! (you don’t need a neg cashflow) and move onto a deal more in your favor.Since you have no $, try generating QUICK! cash on flipping contracts or L/O should U choose to hold rentals.

Re: Advise needed - Posted by Clair-MO

Posted by Clair-MO on July 01, 2002 at 08:43:26:

Tiocoki, I don’t give advice but suggestions to newbies. Why don’t you unload the property for a profit and email me, when you are planning another buy so I can help you by making suggestions what not to do so you don’t lose an extra $500. Join the chat room at net-work with other REInvestors. Its free to join and I hope to see you there. I’m there after 9PM!

Re: Advise needed - Posted by Barry

Posted by Barry on July 01, 2002 at 06:01:24:

If there is a “big demand”, why didn’t you rent where it would at least cover your expenses ($2100)? You are now losing $500 a month.

My suggestion “Don’t do this again”.

Good luck!