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Rental Property - What/where would you buy?
Posted on 4/4/17 at 12:29 am
Posted on 4/4/17 at 12:29 am
With all of the threads on using real estate to build wealth, it got me thinking.. if you had 30-50k to put down towards a rental(s), where would you start? What would you look for? Which location? etc.
Are there any key metrics you look for when purchasing? rent/expenses, cash flow, ROI?
Any insight from the RE investors of the MT would be greatly appreciated
Are there any key metrics you look for when purchasing? rent/expenses, cash flow, ROI?
Any insight from the RE investors of the MT would be greatly appreciated
4
Posted on 4/4/17 at 6:28 am to LSUTOM07
Trailer park.
Posted on 4/4/17 at 7:19 am to LSUTOM07
Find a location in an area where residency will be there longterm. Foreclosures are always nice to get good deals. I suggest newer homes or else insurance will just eat you up. I like the college town idea where renting is most common.
Posted on 4/4/17 at 8:06 am to LSUTOM07
quote:
Are there any key metrics you look for when purchasing? rent/expenses, cash flow, ROI?
LINK
You have to set the COC return and PCF you want for different price points. I gave an example of mine on the last page of thread linked above. Hopefully that gives you an idea. The first page of thread gives you some metrics.
Posted on 4/4/17 at 8:44 am to rpg37
quote:
I suggest newer homes or else insurance will just eat you up.
that just isn't true. We are not talking homeowner's here.
Posted on 4/4/17 at 8:58 am to rpg37
quote:
Foreclosures are always nice to get good deals
This is definitely true but if you are in good RE area, they can go fast once open to investors. Get a good agent to help you find and make quick offers.
quote:
I suggest newer homes or else insurance will just eat you up.
My most recently built property was built in 1975 and the insurance average per property for us is only $55/per property per month. Insurance is not terrible high for the most part. Property taxes are double our insurance cost and they are not even very high were we are.
Posted on 4/4/17 at 9:15 am to stevengtiger
quote:
Insurance is not terrible high for the most part.
correct. dwelling policies are not expensive if you shop around. Mine are cheaper than that. maybe 35 per month. That is with lots of provisions also. great coverage for a non owner occupied. Mine are built around same time as yours roughly.
quote:
Property taxes are double our insurance cost and they are not even very high were we are.
some of mine are triple based on city and county. Doesn't matter. All factored in. still cash cows.
Posted on 4/4/17 at 9:17 am to LSUTOM07
quote:
Are there any key metrics you look for when purchasing
Cash flow is super important for your first couple of investments, IMO. We're not like the major investment firms, we really need it to cash flow from day one since it'll take most of your liquid capital to make the down payment. So REALLY make sure that that's going to work.
Once you get some resources built up you can afford to eat a loss for a bit while a potential play incubates, but not your first few plays.
Posted on 4/4/17 at 9:25 am to stevengtiger
quote:
stevengtiger
check your email. i dropped you a quick note.
Posted on 4/5/17 at 7:35 am to stevengtiger
quote:
but if you are in good RE area, they can go fast once open to investors. Get a good agent to help you find and make quick offers.
this guy knows what he is talking about.
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