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Started By
Message
Another reason why real estate > stock market
Posted on 1/5/14 at 2:38 pm
Posted on 1/5/14 at 2:38 pm
Ok..now that I baited you in, here me out. I was looking at a prospective rental property two weeks ago when I saw a decent house two doors down that was all grown up and looked vacant. I asked a lady across the street what the deal was and she said the owner died about 3 years ago and it has just been sitting there.
I pull up the tax records and find the current owner lives a few states over(guy that died son). I mail them a letter telling them I would like to buy it for a rental and heard back from him today.
We haven't closed on it yet so it could fall through, but I offered him $20,000 cash and he agreed(should have said 15k...frick). The home is worth about $40,000 - $45,000 as is. I'll put about $5,000 in it to get it rent ready and rent it for $700 a month.
Point I am trying to make is, anyone can make easy money in real estate. My gains in the stock market are MUCH slower than that.
I pull up the tax records and find the current owner lives a few states over(guy that died son). I mail them a letter telling them I would like to buy it for a rental and heard back from him today.
We haven't closed on it yet so it could fall through, but I offered him $20,000 cash and he agreed(should have said 15k...frick). The home is worth about $40,000 - $45,000 as is. I'll put about $5,000 in it to get it rent ready and rent it for $700 a month.
Point I am trying to make is, anyone can make easy money in real estate. My gains in the stock market are MUCH slower than that.
This post was edited on 1/5/14 at 2:40 pm
9
Posted on 1/5/14 at 2:42 pm to I Love Bama
quote:
I offered him $20,000 cash and he agreed
quote:
rent it for $700 a month.
quote:
anyone can make easy money in real estate.
Being a slumlord isn't easy.
Posted on 1/5/14 at 2:43 pm to I Love Bama
I would not want to have to deal with the type of tenant who rents a house that was recently sold for only $20,000 and can only afford to pay $700/month for a HOUSE.
F that crap.
F that crap.
Posted on 1/5/14 at 2:48 pm to I Love Bama
My stock isn't gonna call me in the middle of the night when the toilet is overflowing
Posted on 1/5/14 at 3:53 pm to I Love Bama
quote:
Point I am trying to make is, anyone can make easy money in real estate
So back to your original post. If you live in an area where you can get houses for 30-40K and rent to semi-decent tenants, you're probably correct. Thing is, that isn't true for everyone.
For example, I live in the DC metro area. There is nothing rentable here that doesn't cost $300K to buy unless it is in the hood. That kind of money gets ten houses in Huntsville, apparently.
This means you don't have to worry as much about a tenant being habitually late. If that happens to a $300K property in DC it's the equivalent of having every single one of your Huntsville tenants not paying the bills at the same time.
Posted on 1/5/14 at 4:27 pm to I Love Bama
quote:
Another reason why real estate > stock market
Not always. You've made too much of a blanket statement.
quote:
anyone can make easy money in real estate.
Sure. Also, anyone can make money in the stock market. What's your point?
Posted on 1/6/14 at 12:57 pm to I Love Bama
I'm trying to wrap my mind around getting that kind of instant return on real estate. You are very lucky on that particular piece IMO.
Posted on 1/6/14 at 8:35 pm to I Love Bama
quote:
I Love Bama
How old are you and how long have you been doing this? Is this your full time job? How did you get your start in RE? If one does not want to deal with home repairs, but still wants to invest in rental properties, how do they take care of home repairs/maintenance?
This post was edited on 1/6/14 at 8:39 pm
Posted on 1/6/14 at 9:16 pm to I Love Bama
carrying costs
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