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Message
how to use 200k to invest in real estate
Posted on 4/28/14 at 1:12 pm
Posted on 4/28/14 at 1:12 pm
i'm currently looking into a few options:
option 1: use the full 200k to get us into a home with would be our in between house for the next 5-6 years. we are looking at this as a long term flip (we live in lakeview).
pros: we'd avoid pmi and have a minimal monthly payment
cons: ?
option 2: we go fha, which i believe is around 3% down, use an allocated amount to do misc repairs and use the remaining amount to flip a second home.
pros: the opportunity to stretch the 200k as far as possible and possibly get a great return / profit.
cons: risky business. pmi.
option 3: 20% down on in between house. invest the remainder into flipping another property.
pros: safer option for 1st house. avoid pmi.
cons: less available for flipping.
if anyone has any knowledge of real estate investment i'd love a point in a good direction.
option 1: use the full 200k to get us into a home with would be our in between house for the next 5-6 years. we are looking at this as a long term flip (we live in lakeview).
pros: we'd avoid pmi and have a minimal monthly payment
cons: ?
option 2: we go fha, which i believe is around 3% down, use an allocated amount to do misc repairs and use the remaining amount to flip a second home.
pros: the opportunity to stretch the 200k as far as possible and possibly get a great return / profit.
cons: risky business. pmi.
option 3: 20% down on in between house. invest the remainder into flipping another property.
pros: safer option for 1st house. avoid pmi.
cons: less available for flipping.
if anyone has any knowledge of real estate investment i'd love a point in a good direction.
2
Posted on 4/28/14 at 1:35 pm to hey benji
In my opinion, not alot of good cheap properties listed in the big LV. You're betting that in 5-6 years the appreciation will beat the 7% you are going to lose in closing costs.
You'd need a good discounted property (perhaps the incentive for the seller is that you can do a cash deal?). Then, you'd have to hope that you could get double digit appreciation to get any real gains for when you sell.
I honestly feel like property values are too high in NOLA right now. The combination of insulation from the recession, slow hurricane seasons, and hollywood people here to scoop up real estate (rental and purchasing) has driven prices uptown to an all time high and lakeview is almost back to pre-katrina/economic boom prices.
Not saying it won't keep going up but 3 bed/2 bath pre-katrina cottages are in the $250-$350k range in Lakeview. Not sure financing will allow for wide scale demand for those types of homes to be listing at $350k-450k in 6-10 years. I'm not saying current prices are overvalued but I think they are fairly valued.
TL;DR: for what my opinion is worth, I think if you are looking for a long term place to live, buy in Lakeview. I wouldn't buy in Lakeview expecting big appreciation unless you find a really really good price compared to what is out there. Also, insurance and taxes are only going to go up in the future. I'm a 3rd generation lakeview guy and it is the best neighborhood in the city for safety, convenience, etc but I don't think there is significant investment upside- just good quality of life.
You'd need a good discounted property (perhaps the incentive for the seller is that you can do a cash deal?). Then, you'd have to hope that you could get double digit appreciation to get any real gains for when you sell.
I honestly feel like property values are too high in NOLA right now. The combination of insulation from the recession, slow hurricane seasons, and hollywood people here to scoop up real estate (rental and purchasing) has driven prices uptown to an all time high and lakeview is almost back to pre-katrina/economic boom prices.
Not saying it won't keep going up but 3 bed/2 bath pre-katrina cottages are in the $250-$350k range in Lakeview. Not sure financing will allow for wide scale demand for those types of homes to be listing at $350k-450k in 6-10 years. I'm not saying current prices are overvalued but I think they are fairly valued.
TL;DR: for what my opinion is worth, I think if you are looking for a long term place to live, buy in Lakeview. I wouldn't buy in Lakeview expecting big appreciation unless you find a really really good price compared to what is out there. Also, insurance and taxes are only going to go up in the future. I'm a 3rd generation lakeview guy and it is the best neighborhood in the city for safety, convenience, etc but I don't think there is significant investment upside- just good quality of life.
Posted on 4/28/14 at 1:53 pm to hey benji
Buy 5 30k investments homes, rent them out between 5-700 a piece monthly pay them off in 3.5 years
Posted on 4/28/14 at 2:10 pm to Crbello4Hiceman
quote:
Not saying it won't keep going up but 3 bed/2 bath pre-katrina cottages are in the $250-$350k range in Lakeview
It's even worse than that; the only house you'll get in Lakeview for $250K is a teardown.
I really do think NO is in a mini-housing bubble; and it's not just limited to Lakeview. I just do not see all the high-income jobs out there that can support these soaring housing prices. Maybe they're there, though.
Posted on 4/28/14 at 2:14 pm to Cold Cous Cous
A duplex in foreclosure that you could get for a sweet deal is probably the only way to make $ in lakeview.
Only problem is I have not seen one of those in a year.
Only problem is I have not seen one of those in a year.
Posted on 4/28/14 at 2:22 pm to eng08
i was going to say the same thing. lakeview, nola in general, does seem to be in it's own little bubble.
it's mind blowing that there is a teardown at one end of the block and an asking price of 600k+ at the other end.
i really think the best bet may be to use the 200k and go into a home for the next 5-6 years.
worse case scenario, we can make our 200k back at the minimum.
it's mind blowing that there is a teardown at one end of the block and an asking price of 600k+ at the other end.
i really think the best bet may be to use the 200k and go into a home for the next 5-6 years.
worse case scenario, we can make our 200k back at the minimum.
Posted on 4/28/14 at 2:43 pm to Cold Cous Cous
Ya, we are in the process of buying a house uptown, but in a little area that is near Audubon, but no one likes 
While we may still have paid a small premium on it, the house is 100k lower than houses across the "block" from it and in a price range you can't really find in Uptown that isn't a total shite box or really small. Some of the houses on the street have been redone, while others need it, so I'm hoping over the long haul it works out and that I insulated myself as much as I could from these prices.
I couldn't justify the 400k and up range for some of these properties.
While we may still have paid a small premium on it, the house is 100k lower than houses across the "block" from it and in a price range you can't really find in Uptown that isn't a total shite box or really small. Some of the houses on the street have been redone, while others need it, so I'm hoping over the long haul it works out and that I insulated myself as much as I could from these prices.
I couldn't justify the 400k and up range for some of these properties.
This post was edited on 4/28/14 at 2:46 pm
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