Hello all,
ugh… I’m 50 years old, you’d think I’d be done with being “new” to things by now… but I guess not.
A little about me first - I have a mortgage banking background (both prime and subprime loans), so I have a deep understanding of the lending process. I’ve also spent the last 3 years or so “learning” about investing in real estate.
I have finally found someone to mentor me (yay me). So I’m ready to dive in (ok, more like dip a toe in…)… but the one problem I have is that my mentor is not from here, and doesn’t understand the market or the properties (“how’s the grass?” hmmmm what grass?)
My next problem is that I’m somewhat recently from So Cal, so I don’t have any concept of properties that actually cash flow.
Anyway… here’s my first question. I believe I have found the elusive diamond… the property we all search for. Assuming I’m right on about 100 different points (and here, my mentor will be of assistance), I expect that I can fix it up and still list it at about 8k under what any sane person would value it at (the EXTREME low end). At a 100% loan and rent that’s low for the area and house, the property still cash flows at nearly $200/month.
So… is $200/mo. enough of a cash flow for an investor that accumulates property? I MUST flip the house relatively rapidly (within 6 months), so this is a big deal for me. If I can offer a move-in ready home in an excellent neighborhood at a subterranean price, is that enough for an investor to pick it up?
Ok, I’m going to quit typing before I muck up the waters, LOL