Analyzing a single family home. - Posted by Dianne L. Cloer

Posted by ScottAG on January 19, 2001 at 09:56:24:

I’m going through the program myself, and I also live in the Bay Area.

RE is so crazy here that I’m considering looking out-of-state for possibilities. I was told by a couple of investors that most people here are lucky to get a zero net out of rental props here. Either that or they’re into it for a 1031 exchange. Me? I picked up a toll-free VM/Fax number at and have my eyes on Portland, OR. :slight_smile:

  • ScottAG

Analyzing a single family home. - Posted by Dianne L. Cloer

Posted by Dianne L. Cloer on January 17, 2001 at 18:32:50:

I live in Fremont, CA, the properties in my area and all around are from 250,000 to 500,000 and higher. I called and asked PEI if the techniques and methods were they same. They told me yes,but the terms and conditions are negotiated different. Is this true and how? Also, I’m reading a single family home should generate a 1 to 1 1/3% monthly income. On a 250,000 dollar home that means the rent would have to be 2500.00. That is not happening.
How do I apply this program here?

Re: Analyzing a single family home. - Posted by Brent_IL

Posted by Brent_IL on January 18, 2001 at 20:26:30:

In Chicagoland, houses will rent for one-eight of 1% of true FMV. To get the equivalent of 1.3%, I would have to buy the rental house for well under FMV, or have the seller carry-back with reduced (or no) payments for a couple of years.

By seller financing the sale for terms, i.e. low down plus closing costs, I can usually get 1.1% without a problem.

If you put someone in a house at 1.3%, the taxes and insurance that they pay might add another .3 to their monthly payment. Buying may double their housing costs (.8 to rent vs. 1.6 to buy), increasing the chance of their default.

I like ratios, and use them often as a decision-making tool, but do make sure that the market will support your 1.3% projections.

Re: Analyzing a single family home. - Posted by dewCO

Posted by dewCO on January 18, 2001 at 11:39:25:

Who is PEI and what techniques do they recommend that they are the same in a high priced environment. NEver heard of them.

Yes, you can flip, lease option, option and rent higher priced homes, the trick is always to deal only with motivated sellers, so that you are not “getting in”, buying, or controlling the property at retail (fair market value) prices.

Re: Analyzing a single family home. - Posted by Dianne

Posted by Dianne on January 18, 2001 at 17:44:54:

PEI is the Professional Education Institute, in which, Mr. Sheets refers to in all of his program. It is the customer service contact. I’m surprised you are not familiar with them!
The 250,000 dollar property is in the top half of the inexpensive and the lower half of the moderately expensive home that Mr. Sheets recommends in his program. page 6-3., so how do I generate a 1% monthly income. This is working with no money down.