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re: For the posters "of a certain age", how have you found a balance in your life?
Posted on 5/6/15 at 4:48 pm to Fat Bastard
Posted on 5/6/15 at 4:48 pm to Fat Bastard
It's been proven you can manage up to 40 single family homes on your own as long as they are in decent areas.
I don't buy into the 2% rule at all. If I only bought using this criteria in my area then I would die not ever owning rental property.
My minimum is 1% of purchase price in rent each month, in solid areas, no flood zone, hope for recent capital improvements such as roof or a/c. I'm getting $350/m cash flow on properties with 15 year notes and $600/m on 30 yr notes.
With rates so cheap I'm sticking with 30 yr moving forward.
My criteria probably won't work for other investors but it's the criteria I decided on after owning a few and it works for me.
Dive in and buy the first one and you will learn more after owning one property compared to reading 1,000 books.
I don't buy into the 2% rule at all. If I only bought using this criteria in my area then I would die not ever owning rental property.
My minimum is 1% of purchase price in rent each month, in solid areas, no flood zone, hope for recent capital improvements such as roof or a/c. I'm getting $350/m cash flow on properties with 15 year notes and $600/m on 30 yr notes.
With rates so cheap I'm sticking with 30 yr moving forward.
My criteria probably won't work for other investors but it's the criteria I decided on after owning a few and it works for me.
Dive in and buy the first one and you will learn more after owning one property compared to reading 1,000 books.
0
Posted on 5/6/15 at 6:10 pm to Fat Bastard
I believe having good management is critical to a worry free retirement.
Posted on 5/7/15 at 2:04 am to Fat Bastard
quote:
Fat Bastard
Do you have a property manager that you use in New Orleans?
Posted on 5/7/15 at 10:12 am to Coastdog28
2% is virtually impossible in most large, desirable metropolitan areas. It's difficult to get 1.5% in New Orleans metro.
This post was edited on 5/7/15 at 10:15 am
Posted on 5/7/15 at 12:44 pm to eng08
Yep. Good management is the difference between having good screened qualified tenants as well as keeping your property in good shape for these tenants and from costing you lots of dollars in maintenance and eviction costs, lost rents, etc with bad management.
Posted on 5/12/15 at 2:59 pm to MrSweets
My friend and I are thinking about getting into the Single family home rental businesss in ATL. Both in our mid twenties. I would love to hear some advice from you guys with experience.
-Is it the right time to jump in financially for us as individuals?
-Should we form an LLC?
-What are some obstacles that we can expect?
-What are some benefits to be expected?
-Is it the right time to jump in financially for us as individuals?
-Should we form an LLC?
-What are some obstacles that we can expect?
-What are some benefits to be expected?
Posted on 5/12/15 at 3:51 pm to SouthMSReb
quote:
thinking about getting into the Single family home rental businesss in ATL
I am about a year away from this in the same area. I would be interested to hear what others have to say about the Atlanta market.
Posted on 5/12/15 at 5:10 pm to SouthMSReb
1. Are you or your buddy married? If yes, I would advise against the partnership since you may be forced to compromise somewhere down the road because there's a woman in the picture.
2. What's the money situation looking like and what price range are you guys looking at?
3. You could form an LLC(pretty cheap) to protect your personal assets. I didn't since I took out 300K liability for each of my properties.
4. Obstacles - negative cash flow is a big one. Make sure to do accurate calculation on monthly mortgage payment + expenses(taxes, insurance, maintenance, repairs). Other things to look out for: bad tenants(make them put down at minimum a month's worth of ten in deposit), vacancy, major repairs(roof, exterior painting, A/C)
5. Benefits: positive cash flow, earning equity monthly through tenants' rent, owning the property outright down the road(try to finance 15 years), depreciation on tax returns, getting monthly income when you retire.
2. What's the money situation looking like and what price range are you guys looking at?
3. You could form an LLC(pretty cheap) to protect your personal assets. I didn't since I took out 300K liability for each of my properties.
4. Obstacles - negative cash flow is a big one. Make sure to do accurate calculation on monthly mortgage payment + expenses(taxes, insurance, maintenance, repairs). Other things to look out for: bad tenants(make them put down at minimum a month's worth of ten in deposit), vacancy, major repairs(roof, exterior painting, A/C)
5. Benefits: positive cash flow, earning equity monthly through tenants' rent, owning the property outright down the road(try to finance 15 years), depreciation on tax returns, getting monthly income when you retire.
Posted on 5/13/15 at 8:13 am to MrSweets
1) Not married. Buddy of mine known each other for years.
2) Both making in between 50-75k each. Looking in an up and coming "tear down" area where the older homes are going for around 300k but most are being torn down and huge homes are being built.
3) Would the LLC be more beneficial for tax purposes? For a partnership?
4) We each currently pay 650 in rent. Money is being thrown away.
Thanks for your time and expertise.
2) Both making in between 50-75k each. Looking in an up and coming "tear down" area where the older homes are going for around 300k but most are being torn down and huge homes are being built.
3) Would the LLC be more beneficial for tax purposes? For a partnership?
4) We each currently pay 650 in rent. Money is being thrown away.
Thanks for your time and expertise.
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