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re: Buying investment properties...
Posted on 6/7/14 at 3:59 pm to I Love Bama
Posted on 6/7/14 at 3:59 pm to I Love Bama
quote:
I'll post pics of one my rentals I picked up for $29,000. I put about $5,000 in it and I would absolutely live there.
quote:
post those pics of your property I Love Bama
quote:
On a work trip right now.
Might can later
It's later.
1
Posted on 6/8/14 at 10:03 am to I Love Bama
quote:
I think college is a waste of time and money for a lot of people. I think the government will stop pumping it up and encourage people to learn trades.
While true, until the day employers drop the requirement, majority of kids will go to college. Even multiple times.
Posted on 6/8/14 at 3:19 pm to RadTiger
This is this house we bought for $29,500. I wish the inside pictures were a little better but I just had these to show a friend the new appliances.
The house needed some repair but all in all it wasn't too bad. We put a new roof on, tiled kitchen, new kitchen cabinets, "new" appliances off craigslist and painted the whole interior. Re did some plumbing and electrical (minor stuff). After looking at my numbers it was closer to $7,000 in repairs.
We have furnished this property completely and marketing it as an executive short term rental. We've gotten $1,200 a month for it although I'm not sure how the true vacancy rate is going to pan out. I need to revise my marketing strategy.
LINK
The goal was to buy 5 this year and we have bought 2. I think we will end up with 3 new purchases by the end of the year unless I turn over management to a third party. Long term rentals are very easy but this one has been a little more challenging although the ROI is substantially better.
The house needed some repair but all in all it wasn't too bad. We put a new roof on, tiled kitchen, new kitchen cabinets, "new" appliances off craigslist and painted the whole interior. Re did some plumbing and electrical (minor stuff). After looking at my numbers it was closer to $7,000 in repairs.
We have furnished this property completely and marketing it as an executive short term rental. We've gotten $1,200 a month for it although I'm not sure how the true vacancy rate is going to pan out. I need to revise my marketing strategy.
LINK
The goal was to buy 5 this year and we have bought 2. I think we will end up with 3 new purchases by the end of the year unless I turn over management to a third party. Long term rentals are very easy but this one has been a little more challenging although the ROI is substantially better.
This post was edited on 6/8/14 at 3:25 pm
Posted on 6/8/14 at 3:25 pm to I Love Bama
Earlier in the thread is was "I" and now it's "we"?
Posted on 6/8/14 at 3:28 pm to stout
Your obsession knows no bounds. Yes, some of the properties I own are "we".
We know, you think I am full of shite. Nobody cares.
Run along.
We know, you think I am full of shite. Nobody cares.
Run along.
Posted on 6/8/14 at 3:35 pm to I Love Bama
LOL
No obsession. I just see through your bullshite and the crap you spew sometimes and it upsets you. Like I said earlier it's all regurgitated from infomercials and reality TV.
Lord help anyone that takes your advice though. That line about not owning rentals near colleges, where you are probably 100 times more likely to find someone looking to rent than your ghetto houses, is fricking classic though.
I get it though. You are young, dumb, and full of cum and think you own the world right now and think you are smarter than everyone else. I was there once too. It took a bubble pop and market crash to bring me to reality and realize I wasn't as smart as I thought and sure as hell wasn't as smart as some people I should have listened to. It was an expensive lesson but I operate way more lean now so it worked out for me.
I am just saying you need to cut back on the BS and hyperbole as many see through it on here. Many have been there and know way more than you do.
ETA: FTR I do hope you do well with your rentals. I am not one to hate on success and someone that hustles.
No obsession. I just see through your bullshite and the crap you spew sometimes and it upsets you. Like I said earlier it's all regurgitated from infomercials and reality TV.
Lord help anyone that takes your advice though. That line about not owning rentals near colleges, where you are probably 100 times more likely to find someone looking to rent than your ghetto houses, is fricking classic though.
I get it though. You are young, dumb, and full of cum and think you own the world right now and think you are smarter than everyone else. I was there once too. It took a bubble pop and market crash to bring me to reality and realize I wasn't as smart as I thought and sure as hell wasn't as smart as some people I should have listened to. It was an expensive lesson but I operate way more lean now so it worked out for me.
I am just saying you need to cut back on the BS and hyperbole as many see through it on here. Many have been there and know way more than you do.
ETA: FTR I do hope you do well with your rentals. I am not one to hate on success and someone that hustles.
This post was edited on 6/8/14 at 3:41 pm
Posted on 6/8/14 at 3:41 pm to stout
People ask for advice and I give mine. I don't claim my advice is better than yours or anyone else that is in the industry. I'm no millionaire off real estate but I hit a lot of singles and doubles that will put me in an early retirement position.
I don't spew any BS on here. I'm the first to admit when I don't know about something which is fairly often.
You feel as though you need to police every board and it just comes across as very pathetic.
I don't spew any BS on here. I'm the first to admit when I don't know about something which is fairly often.
You feel as though you need to police every board and it just comes across as very pathetic.
quote:
ETA: FTR I do hope you do well with your rentals. I am not one to hate on success and someone that hustles
This post was edited on 6/8/14 at 3:43 pm
Posted on 6/8/14 at 3:45 pm to I Love Bama
I'm not policing anything.
I do hate when people get bad advice though because plenty don't know any better and might take it as gospel.
I only speak of things I think I have a good understanding of though. You don't see me correcting doctors in medical threads or attorneys in legal threads.
I will speak up when it's bad real estate or construction advice though just because I have years of experience in both though admittedly there are portions of both I feel don't know enough about. Commercial being true for both construction and RE because I have always focused on residential as a realtor, contractor, and investor.
I know my limits.
I do hate when people get bad advice though because plenty don't know any better and might take it as gospel.
I only speak of things I think I have a good understanding of though. You don't see me correcting doctors in medical threads or attorneys in legal threads.
I will speak up when it's bad real estate or construction advice though just because I have years of experience in both though admittedly there are portions of both I feel don't know enough about. Commercial being true for both construction and RE because I have always focused on residential as a realtor, contractor, and investor.
I know my limits.
Posted on 6/8/14 at 3:48 pm to I Love Bama
How big of a lot is that house on BTW?
Looks big for a city lot. Too bad you couldn't split it somehow.
Looks big for a city lot. Too bad you couldn't split it somehow.
Posted on 6/8/14 at 3:57 pm to stout
Maybe a 3rd of an acre? I'm not really sure.
Funny story though, since we are marketing as an executive rental, we budgeted lawn care into our proforma at around $100 per month. Guy from across the street is a crazy war vet and asked if he could cut the grass. I was thinking $50 a cut would be fair for the yard and he throws $20 at me. Says the government watches his bank account so he will only take cash. It takes him about an hour and a half and I'm sure he burns $5 - $10 in gas to do it. We give him a $10 tip usually.
Funny story though, since we are marketing as an executive rental, we budgeted lawn care into our proforma at around $100 per month. Guy from across the street is a crazy war vet and asked if he could cut the grass. I was thinking $50 a cut would be fair for the yard and he throws $20 at me. Says the government watches his bank account so he will only take cash. It takes him about an hour and a half and I'm sure he burns $5 - $10 in gas to do it. We give him a $10 tip usually.
Posted on 6/8/14 at 4:04 pm to I Love Bama
Some people just like to work and are too naive to know their value.
I would do the same as you and tip him. I would feel bad taking advantage of someone.
I would do the same as you and tip him. I would feel bad taking advantage of someone.
Posted on 6/8/14 at 4:17 pm to stout
Got a family friend that does something similar to ILB. He owns somewhere between 15-25 section 8 housing units. He is incredibly handy and can do everything from electrical to plumbing to HVAC. Best friend buys into a few of the units with him and they enjoy working together.
I don't know too much of the details about it but I know that he generates quite a premium. With section 8, as long as he finds a tenant he doesn't worry much about being paid.
I don't know too much of the details about it but I know that he generates quite a premium. With section 8, as long as he finds a tenant he doesn't worry much about being paid.
This post was edited on 6/8/14 at 4:19 pm
Posted on 6/8/14 at 4:31 pm to GenesChin
There are guys here in Birmingham buying houses in bad parts of town for $15,000 and then rent them for $800 month via section 8.
You would literally get shot in these parts though. I would crap my pants if a tenant called me to come fix something.
I like "c" class neighborhoods. I'm not scared to go there and you can still find good deals. Mostly lower middle class blue collar people.
You would literally get shot in these parts though. I would crap my pants if a tenant called me to come fix something.
I like "c" class neighborhoods. I'm not scared to go there and you can still find good deals. Mostly lower middle class blue collar people.
Posted on 6/8/14 at 4:44 pm to I Love Bama
quote:
There are guys here in Birmingham buying houses in bad parts of town for $15,000 and then rent them for $800 month via section 8.
Meh...we do management/work on repos for banks and a lot of times we go into places like this. Granted it's during the day but no one is going to mess with you for the most part. I could understand if you lived in Detroit or Memphis though.
There is one house that I send my guys to at least once a month to kick squatters out and there are always more needles in it each time they go.
BTW, this is how I have been finding my properties lately instead of waiting on them to hit the market of sheriff sale.
Posted on 6/8/14 at 4:47 pm to stout
How do you find them?
Posted on 6/8/14 at 4:51 pm to stout
(no message)
This post was edited on 8/10/14 at 12:22 pm
Posted on 6/8/14 at 4:54 pm to I Love Bama
quote:
How do you find them?
I started doing property preservation for banks. I know what's coming up before anyone else does and what condition they are in.
Posted on 6/8/14 at 4:59 pm to bigblake
You can get bad tenants in any price range really. It's luck of the draw sometimes.
You can also get someone that is awesome at first but then life happens and they turn to crap. I have seen it.
All you can do is do your research on them including recommendations from previous landlords and credit checks.
I know a lot of people don't do credit checks for rentals but for a $200K+ house I absolutely would.
Even they're renting because their credit isn't the best you can still get a feel for them by what kind of debt they have and what the reason for their less than stellar credit is.
If you have no way of pulling it have them pull it and hand a copy to you.
You can also get someone that is awesome at first but then life happens and they turn to crap. I have seen it.
All you can do is do your research on them including recommendations from previous landlords and credit checks.
I know a lot of people don't do credit checks for rentals but for a $200K+ house I absolutely would.
Even they're renting because their credit isn't the best you can still get a feel for them by what kind of debt they have and what the reason for their less than stellar credit is.
If you have no way of pulling it have them pull it and hand a copy to you.
Posted on 6/8/14 at 5:01 pm to bigblake
quote:
I had a "junker" rental ($200k) that I was renting for $1,500 a month
How do the numbers work for something like this? After vacancy and capex are you even making a profit?
Posted on 6/8/14 at 5:07 pm to I Love Bama
Yea that's at least a $1200+ payment with PMI, taxes, and insurance if he financed it all.
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