First NOO Purchase - Posted by Brett Badger

Posted by Brett Badger on December 06, 2000 at 17:17:21:

Property: SFR 3bed/1bath, Listed @ $50k. Needs new paint, carpet, landscaping and other minor repairs.

Surroundings: Same size 3/1 house 6 lots away just rented quickly for $750/mo. Somewhat nicer than my potential purchase inside and out. Neighborhood recently had numerous sales and buyers have been fixing up properties and improving the neighborhood.

Personal Info: First potential NOO purchase. Recently became interested in real estate investing. My FICO 680. Wife’s FICO about 615. Only have $1k to put down or use for fees. Ratio’s with no rental income figured will be about 30/40 after purchase(assuming PITI of $500). Only marginally handy. Would likely pay to have most work done on the property.

Goal: Cash flow. I’d like to rent the property indefinitely. If a tenant were very interested in purchasing I’d sell. Would like to pay off the property, cash out 80%, and repeat process.

Roadblocks: I don’t know the owner’s motivation for selling or what loans/liens are against the property.

Note: Debt Ratio is based on my gross income and my wife’s taxfree income of $2200/mo.


  1. Is this property worth pursuing?
  2. What should I offer?
  3. Are my goals realistic in general?
  4. What is the next step?
  5. Any other advice?
  6. What are some good lenders in the Inland Empire(SoCal)?

Thank you in advance for your time.