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Message
Real estate investment: What am I missing?
Posted on 5/15/12 at 11:34 am
Posted on 5/15/12 at 11:34 am
quote:
$38000 / 3br - 1500ft²
This is a 3br 1.5 bath home thats currently rented at 850/month. Tenant just resigned a new 1 year lease at $850 per month.
mortgage on this would be about 3-400....so I would make 400/month
but supposedly there's more
quote:
can include in a 13 home package deal for only 350k and valued at 800k
worst case scenario I put it as section 8 and get 650/month
why are these available? The market cap on these make it basically risk free....what am I missing?
6
Posted on 5/15/12 at 11:37 am to Jahel
quote:
what am I missing?
Insurance and property taxes...
Posted on 5/15/12 at 11:37 am to Jahel
quote:
why are these available? The market cap on these make it basically risk free....what am I missing?
1. Time value of money
2. maintanence costs
Posted on 5/15/12 at 11:37 am to Jahel
Burglary bars on the front windows are about that's missing as far as I can see.
Posted on 5/15/12 at 11:41 am to guttata
If its too good to be true....
Could have a lien on the property.
Could have a lien on the property.
Posted on 5/15/12 at 11:43 am to C
quote:
1. Time value of money
huh? just a little down on my part 8k....then all rent completely reinvested into the property(maintenance or pay-down of mortgage)
not really about immediate cash return
buy 10 of these and within 10 years they'd all be paid off.
then bringing 4k-10k/month
quote:
2. maintanence costs
This is the only issue i see...is it really that bad? >4k/year
This post was edited on 5/15/12 at 11:47 am
Posted on 5/15/12 at 11:52 am to Jahel
quote:
This is the only issue i see...is it really that bad? >4k/year
What part of the country are they located? Differnt places have different problems, termites, the heat in the south eats up roofs, ACs fail. The brick on the outside would be a plus...
Posted on 5/15/12 at 11:58 am to wickowick
Memphis, TN
loc: 4581 cottonwood memphis tn US
but i did see this:
guy's trying to flip
loc: 4581 cottonwood memphis tn US
quote:
4581 Cottonwood Rd, Memphis, TN
Zestimate®: $43,800
Rent Zestimate®: $775/mo
Est. Mortgage: $159/mo
Beds: 3
Baths: 1.0
but i did see this:
quote:
04/03/2012 Sold $26,000 -54.3% $19 Public Record
10/15/1984 Sold $56,859 -- $43 Public Record
guy's trying to flip
Posted on 5/15/12 at 12:02 pm to Jahel
I did a lot of work in Memphis last year, a large portion of that city is the hood but that home is close, but not in, some decent areas...
Posted on 5/15/12 at 12:03 pm to Jahel
quote:
quote:
04/03/2012 Sold $26,000 -54.3% $19 Public Record
this a scam?
buy for 26k
get a fake rental agreement for himself paying 8k over/year so that it would convince people to buy it
make a quick 12k?
Posted on 5/15/12 at 12:05 pm to Jahel
quote:
this a scam?
Caveat emptor
Posted on 5/15/12 at 12:12 pm to wickowick
quote:
this a scam?
Caveat emptor
is that latin for bullet to the head? Because if someone's trying to scam me, I take it in the exact same way as if they're trying to grab my wallet, or break in to my house. How is stealing money different in people's eyes I don't know
This post was edited on 5/15/12 at 12:13 pm
Posted on 5/15/12 at 1:20 pm to Jahel
Sounds too good to be true. Renting it out at that rate over a 15 year period would gross 153,000 on approximate expenditure of ~60,000. Only situation where that would make any sense is if the current owner is moving out of state and can't be bothered to hire a maintenance company.
You have to opt in to be scammed. That's a pretty key difference.
quote:
is that latin for bullet to the head? Because if someone's trying to scam me, I take it in the exact same way as if they're trying to grab my wallet, or break in to my house. How is stealing money different in people's eyes I don't know
You have to opt in to be scammed. That's a pretty key difference.
Posted on 5/15/12 at 1:30 pm to Jahel
That area is not a very safe area. Just FYI
Posted on 5/15/12 at 9:31 pm to Jahel
memphis has tons of great deals, unfortunately they are not THAT GOOD asking price wise for a house like that at least that I have seen lately. now yes you could get a nice PCF monthly investing there, but again that deal looks and sounds fishy. May be a bad neighborhood. may have a tax lien. may have structural problems among other things.
This post was edited on 5/16/12 at 7:45 am
Posted on 5/16/12 at 3:58 pm to Jahel
any updates??? Looked into more thoroughly?
Posted on 5/16/12 at 5:21 pm to Fat Bastard
quote:
That area is not a very safe area. Just FYI
if your going to make any real money in rental property, those are the only areas your going to do it.
Posted on 5/16/12 at 7:22 pm to Alabama Slim
quote:
if your going to make any real money in rental property, those are the only areas your going to do it.
really? Then why are so many making money in good areas in memphis?
Posted on 5/17/12 at 1:38 pm to Jahel
Chinese drywall? Just lost out on a great deal because of that.
Posted on 5/18/12 at 12:36 pm to jmarto1
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