what kind of NOO programs do you usually apply for when doing short term? and long term?

do you need to buy down points to get a good rate?

if you're not buying personal investments, what's your reason(s)?

my reason for not buying personal investments is that in this area the values are starting to drop. i am consistently seeing homes stay on the market for 6 months and i'm seeing more and more short sells on the MLS.

Alvin,

Most of my properties are on 5yr ARM's. For the most part they are either breaking even or cash-flowing. There were a few opportunities that I couldn't jump on that I'm still upset about to this date.

I don't like the idea of buying down your rate unless you're keeping it for a very long period of time. Personally, I probably wouldn't even consider it on an investment property.

I currently own a home that is occupied by a section 8 (government aid) tenant. Payments are paid by the state so they're always on time, but you must always remember that there's a reason they are getting aid from the city...
Fortunately my tenants have been good, other then their dog pooping in the neighbors yard, cops dragging away the boyfriend, tenant out drinking while leaving the kids at home and last but not least, neighbor over hearing the tenant negotiating a "price" in the back yard.
I obviously wouldn't want someone like that in my neighborhood, so now I have to evict them. This is also a whole new territory because it's kind of hard to just "evict" people in our good ole country.

Conclusion: Do your research. Good opportunities are always profitable but I hope you have enough spare time.

I buy all my properties on an extended close of escrow (24 months), and rent the property from them during the escrow for today's fair market rental rate.

It allows me to buy the home at today's price, but buy it in 24 months from now when I can do the mortgage as a refinance anyway with a good lender. It also give me a rental payment as my mortgage which is much cheaper than any mortgage out there.

I just got a 3.2% interest only on my last home by doing it this way. And I NEVER put a dime out of my pocket.

ByOwner how do you structure this type of deal?

Byowner, Are you suletting these out or using them for your own property.

Are you doing a sandwich lease?


The way i understand it is that you "purchase" a home for todays market value hoping that it will appreciate. Then you rent out the property for the mortgage payment or current rental value (if you can negotiate that) and ride the appreciation.

At this point you have a few options.

1. You can sublet to another tenant and cashflow on it monthly along with buying it at the end of your lease.

2. You can sublet and cashflow monthly offering an option to prchase for $X so you get some cash flow monthly and also a chunk of cash in the beginning. With this arrangement your goal is to negotiate a sale price for the lowest you can to the seller, and the highest you can to your tenant. Then when the deal closes in 24 months you collect the margin.

3. You can do what is called a Cooperative Assignment and assist the original seller in doing option 2 for the option deposit (often up to 3% of the selling price)