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Started By
Message
Rental Property Investment
Posted on 6/17/15 at 11:56 am
Posted on 6/17/15 at 11:56 am
Any of you landlords have tips, books, blogs or websites you recommend?
Rules of thumb?
ie
-Worst house in the best neighborhood
-Rent >1% of house cost
-Finance 15 yrs
Buy vs flip? Thoughts on one over the other?
Better to buy, fix & rent or buy ready to rent?
I'd appreciate any insight you can provide
Rules of thumb?
ie
-Worst house in the best neighborhood
-Rent >1% of house cost
-Finance 15 yrs
Buy vs flip? Thoughts on one over the other?
Better to buy, fix & rent or buy ready to rent?
I'd appreciate any insight you can provide
4
Posted on 6/17/15 at 12:00 pm to SomeGuyFromLA
Rent for no less than 2% of purchase price
/Thread
/Thread
Posted on 6/17/15 at 12:07 pm to Hoyt
So a 3/2 in BR's garden district should be rented out for $5500/mo? 
Posted on 6/17/15 at 12:16 pm to Hoyt
2%? Wtf?
Nothing I know rents for 1% around me. Average 350-400k condo here pulls about 2500 a month.
Nothing I know rents for 1% around me. Average 350-400k condo here pulls about 2500 a month.
Posted on 6/17/15 at 12:18 pm to Tiger n Miami AU83
Condos & houses near Auburn University have a hard time renting out for >1%
Posted on 6/17/15 at 12:20 pm to GenesChin
Yeah, I mean there is no fricking way. 1% is about impossible unless you buy something shitty or foreclosure and sink a bunch into improving it.
Posted on 6/17/15 at 12:20 pm to GenesChin
Probably depends on the market, but in rural Alabama where I own 15 rental units, that seems to be my sweet spot. I typically deal in $50k homes and below in decent neighborhoods.
Posted on 6/17/15 at 12:31 pm to Hoyt
I don't see how anyone is willing to pay $1,000 a month for a $50k house/apartment anywhere. Even rural Alabama. Unless you are buying at $50k at putting a lot of money into a property. Even then how much can a $50k shack be renovated? Or are these trailers or mobile homes or something? Hell, $50k for a trailer on a tiny plot of land seems about as low as it gets.
Half of 1% to 3/4ths of 1% is probably about the average in South Florida.
ETA: Granted, Miami is not a good example as homes/condos here are overvalued as Miami currently ranks as one of the most overvalued markets in the U.S. Problem with Miami's market is billions of dollars flow in yearly from foreign investors paying cash and driving up the market against themselves. Miami's affordability index for housing is absurd as median incomes don't support it and many renters pay 50% of their income towards rent even though it is almost always less than 1% of the purchase price.
Half of 1% to 3/4ths of 1% is probably about the average in South Florida.
ETA: Granted, Miami is not a good example as homes/condos here are overvalued as Miami currently ranks as one of the most overvalued markets in the U.S. Problem with Miami's market is billions of dollars flow in yearly from foreign investors paying cash and driving up the market against themselves. Miami's affordability index for housing is absurd as median incomes don't support it and many renters pay 50% of their income towards rent even though it is almost always less than 1% of the purchase price.
This post was edited on 6/17/15 at 12:38 pm
Posted on 6/17/15 at 12:56 pm to Hoyt
1% if ur lucky in nearly every other non ghetto market
I do better on one, worse on three but its a good goal.
I do better on one, worse on three but its a good goal.
Posted on 6/17/15 at 1:07 pm to Tiger n Miami AU83
The 2% rule is good in alabama but really a buyer should develop a detailed proforma to see what his numbers are.
My latest rental I bought for 15k and I am putting 15k in repairs in it.
I'll get $700 per month minimum.
My latest rental I bought for 15k and I am putting 15k in repairs in it.
I'll get $700 per month minimum.
Posted on 6/17/15 at 1:35 pm to I Love Bama
Keep in mind folks...a lot of my renters have poor credit and can not get approved for a mortgage so they rent.
Posted on 6/17/15 at 1:58 pm to I Love Bama
quote:I didn't even know they made houses/apartments that cheap anymore!
My latest rental I bought for 15k
quote:Anyone making 2% must be absolutely rolling in the dough. I don't know anything about real estate, but doesn't that equate to a 24% annual return on investment? Holy shite.
The 2% rule is good in alabama
Posted on 6/17/15 at 2:04 pm to Patrick_Bateman
Posted on 6/17/15 at 2:07 pm to I Love Bama
Some of the fields aren't linked (revenue assumptions) on this one. I also allocate 10% for property management even though I don't pull it out in real life. I just want to make sure the numbers are good so if I ever decide to walk away and let someone else manage my investment is still sound.
Posted on 6/17/15 at 4:21 pm to I Love Bama
quote:
My latest rental I bought for 15k and I am putting 15k in repairs in it.
I'll get $700 per month minimum.
That's nice but it's an anomaly. I can't imagine a 200k house renting for 3-4k a month.
Posted on 6/17/15 at 4:24 pm to PeteRose
Of course not. That isn't how it works.
My deal is far from an anomaly though. Lot's of people do deals like mine every day.
My deal is far from an anomaly though. Lot's of people do deals like mine every day.
Posted on 6/17/15 at 4:31 pm to I Love Bama
I am working on closing on a mobile home that sits on about an acre lot. The foreclosure price and the repairs will end up running about $55K. We may flip but if not, we should be able to rent for around 2%. My other two properties are right above the 1% mark. It all depends on type of properties and area.
Posted on 6/17/15 at 5:07 pm to I Love Bama
quote:
My deal is far from an anomaly though. Lot's of people do deals like mine every day.
Not sure about Alabama, but in BR <30K properties are in the ghettos. It would be hard to get tenants in such areas. And the tenants that you do get, I would lose sleep over it.
Posted on 6/17/15 at 6:10 pm to Hoyt
WRONG!!!!!!!
Posted on 6/17/15 at 6:44 pm to I Love Bama
Bama, I probably have a dumb question. On your spreadsheet you financed the full cost. Wouldn't that make cash outlay the down payment only? I understand that you need $22K initially, but once the loan closes going forward you only have the down payment tied up in the property correct? That should make your cash and total ROI much higher.
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