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Jahel
Member since Nov 2011
5576 posts
| Real estate investment: What am I missing? (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?
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wickowick 
LSU Fan
Head of Island
Member since Dec 2006
12869 posts
 Online
| re: Real estate investment: What am I missing? (Posted on 5/15/12 at 11:37 am to Jahel)
quote:
what am I missing?
Insurance and property taxes...
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17404 posts
| re: Real estate investment: What am I missing? (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
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guttata
LSU Fan
prairieville
Member since Feb 2006
18248 posts
Online
| re: Real estate investment: What am I missing? (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.
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barry 
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
34698 posts
| re: Real estate investment: What am I missing? (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.
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Jahel
Member since Nov 2011
5576 posts
| re: Real estate investment: What am I missing? (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 at 11:47 am
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wickowick
LSU Fan
Head of Island
Member since Dec 2006
12869 posts
Online
| re: Real estate investment: What am I missing? (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...
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Jahel
Member since Nov 2011
5576 posts
| re: Real estate investment: What am I missing? (Posted on 5/15/12 at 11:58 am to wickowick)
Memphis, TN
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
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wickowick
LSU Fan
Head of Island
Member since Dec 2006
12869 posts
Online
| re: Real estate investment: What am I missing? (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...
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Jahel
Member since Nov 2011
5576 posts
| re: Real estate investment: What am I missing? (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?
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wickowick
LSU Fan
Head of Island
Member since Dec 2006
12869 posts
Online
| re: Real estate investment: What am I missing? (Posted on 5/15/12 at 12:05 pm to Jahel)
quote:
this a scam?
Caveat emptor
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Jahel
Member since Nov 2011
5576 posts
| re: Real estate investment: What am I missing? (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 at 12:13 pm
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Dead Mike
LSU Fan
Cell Block 4
Member since Mar 2010
1501 posts
| re: Real estate investment: What am I missing? (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.
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.
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GregYoureMyBoyBlue 
Georgia Fan
Member since Apr 2011
2334 posts
| re: Real estate investment: What am I missing? (Posted on 5/15/12 at 1:30 pm to Jahel)
That area is not a very safe area. Just FYI
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Fat Bastard 
New Orleans Saints Fan
Paradise
Member since Mar 2009
13493 posts
| re: Real estate investment: What am I missing? (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 at 7:45 am
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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
13493 posts
| re: Real estate investment: What am I missing? (Posted on 5/16/12 at 3:58 pm to Jahel)
any updates??? Looked into more thoroughly?
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Alabama Slim 
Alabama Fan
2009,2011 BCS National Champions
Member since Jul 2007
8797 posts
| re: Real estate investment: What am I missing? (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.
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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
13493 posts
| re: Real estate investment: What am I missing? (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?
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jmarto1
LSU Fan
Houma, LA
Member since Mar 2008
10055 posts
| re: Real estate investment: What am I missing? (Posted on 5/17/12 at 1:38 pm to Jahel)
Chinese drywall? Just lost out on a great deal because of that.
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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
13493 posts
| re: Real estate investment: What am I missing? (Posted on 5/18/12 at 12:36 pm to jmarto1)
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