Rental and Cashflow Property - Management, Strategies and More

As a Michigan investor, success is limited with flips, as there are few buyers who can meet the bank requirements. I am ready to try renting -to own, with tenant puting a sum of money down, having two years to refinance. Has anyone been successful with similar startegies? what worked? what did you do for forms; legal requirements of this set-up? any suggestions will help.

I have a few questions before I start buying renatl properties

1) I dont want a negative cash flow, so what is all the expenses I should consider when buying a rental? (I know there is maintenance, mortgage, property taxes, insurance)

2) When the real estate market goes down does that affect rents. For example if I had a rental property where I was getting a positive cashflow of 300, but the market ended up declining right after, would my cashflow decline because rents would go down?

My Current Flip Has been on the Market with a Realtor for 6 months with no offers... It is a 3B, 2 1/2 Bath SFR, in a beautiful Development in Winslow TWP, NJ... Unfortunately, about 8 Short Sales have sold Since I purchased the Property Dec. 2010 and has brought Home Values Down to the point where The profit margin would be less than 10K and times a wasting... I would than need to split the ?profit? with my partner who did all the rehab (I am mostly just the money man)... So for my partner it would be a big flop instead of a nice flip... Our ReHab's are thorough and we use higher than builder grade materials so we can get market price but quicker... We are thinking about renting or offering a Lease Option (L/O) and have ZERO experiance with either... Our Goal is to sell this property...

I suspect that if you will flip relatively shortly, you would not need to buy Homeowners insurance.

What are your thoughts?

John

Old Dust

I have a lady who's looking to sell her rented out house. She has very little equity in it and wants $2000 now to get it off of her hands via S2 or L/O. The problem is the tenant. She has offered to L/O to the tenant but the tenant doesn't have money for a deposit.
I don't have money myself so if I do the deal it will be a sandwich L/O. Apparently I can't L/O with the current tenant in it.
So...is there a protocol on who gets to evict the tenant?
I know this is business but if it comes down that I have to do it, it's going to be tough. The tenant is a single mother with 2 kids. With a 30days minimum notice that will put her out right in the middle of the holidays.

1BED 1BA nice condo on the 3rd floor
Great Investment and instant cash flow
It can be easily rented for $750-900
Location is great, 10 min to O'Hare Airport, close to 2 major freeways, stores, train, convention center, new casino, park, and more
Under contract and ready for closing.
Please let me know if you are interested. Thanks

i just recently called an fsbo owner and asked the seller i was interested in their property and they said they wouldnt do a lease option. They seemed really knowledgable and knew what it was. I was surprised. I think they want cash for the property even thpugh its been on the market more than ninety days. They said they had 2 other people interested in purchasing the property but i think she was full mof hogwash. Any advice on how i could convince the owner to see me as a future buyer?

my name is adam and i really want to complete my first deal and i dont really have no credit and some money to invest. i dont really have a buyers list either. i see alot of fsbos in my area andi have been contacting them just to get practice. Does anyone have any advice on how to get started the right way? I know u need a buyers list thats the key to ur profit. But even though i dont have one ive been going out there and just trying to get experience talking to sellers. Is that a good idea or no?

I wonder how this will effect investors like us

http://www.thestreet.com/story/11224917/1/a-huge-housing-bargain--but-no...

A Huge Housing Bargain -- but Not for You

By Roger Arnold 08/18/11 - 05:49 PM EDT132 Comments
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This column by Roger Arnold originally appeared on RealMoney on Aug. 11. For a free trial to RealMoney, follow this link.

NEW YORK (RealMoney) -- The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.

If so, I'm just the person to communicate with. I have a property in Trenton, NJ that's been well maintained that I'm selling for $19,000. Contact me for complete details.

Nicole