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re: Investing in real estate - concerns?
Posted on 3/6/19 at 7:38 am to nugget
Posted on 3/6/19 at 7:38 am to nugget
quote:
quote: But a C or D rated house 1.1% is not that great
That wasn't in question. But even a 70k door leveraged sould cash flow positive at 700 per month.
I was simply trying to explain that there shouldn’t be 1 flat line ROI parameter for all properties to anyone looking for their first property. Sometimes you take what you get, but generally once you get multiple properties you start considering some additional factors.
0
Posted on 3/6/19 at 8:13 am to baldona
quote:
Because the way you say this makes it sound like you aren’t using a percent. I’m assuming what you are saying is that you want a $500/ profit a month per door plus a good COC.
I understand how it can be interpreted that way, it was poorly worded.
Posted on 3/6/19 at 9:13 am to nugget
quote:
I understand how it can be interpreted that way, it was poorly worded.
Not that badly, I just want people like the OP to understand completely its a percentage game just like all investment should be. I see $$$ cash flow used all too often.
Posted on 3/6/19 at 11:15 am to baldona
quote:
I see $$$ cash flow used all too often.
remember the poster here awhile back who said with such a little DP he was going to make a great COC? then i asked him how much PCF relative to purchase price? he had too much financed and was not getting a good cash flow. both numbers are definitely the main metrics.
This post was edited on 3/6/19 at 11:25 am
Posted on 3/11/19 at 10:26 am to LSUbase13
how much have you ever invested there? by the way i think it is dangerous to do
Posted on 3/11/19 at 1:19 pm to LSUbase13
quote:
Does anyone have any growing concerns of investing in real estate in expensive "hot" cities (e.g., Austin, Nashville, Charleston, Denver)? I've found that buying a home in in a desirable, trendy neighborhood will easily cost $500,000+. Many times, these homes in desirable and trendy neighborhoods are smaller as they were previously inner-city homes (3/2, 1,700 sq ft). Basically, you are paying strictly for location as the houses themselves aren't worth half that. Given today's younger generations, I've found that salaries haven't increased to correlate with the rising housing costs. Combine that with the fact that a lot are saddled with student debt, do you have any growing concerns with investing in real estate in these trendy areas/neighborhoods?
My concern is not the student debt. My concern is this younger generations attitude towards anything traditional. I am flipping houses now and have been for several years. I will keep milking this cash cow until the baby boomers are gone. 20 years from now however I would want to be holding a shite ton of rentals and not buying fix-n-flips because I do not believe this generation will be interested in owning property or 30 year mortgages.
This post was edited on 3/11/19 at 1:23 pm
Posted on 3/11/19 at 1:21 pm to nugget
quote:
which is why I prefer secondary markets.
I prefer any market that gets $500 per door
Posted on 3/12/19 at 9:58 am to AUtigR24
quote:
My concern is this younger generations attitude towards anything traditional.
It’s just a phase. Truly. When they get older most people are going to seek out the stability of home ownership, just like several other age-related trends.
Don’t forget, several curmudgeon boomers of today were the hippy, free-spirited rebels of the 60’s-70’s. This generation will age into the same old mindset as well.
Posted on 3/12/19 at 10:55 am to CivilTiger83
quote:
Yes I think there is a decent chance we are in another bubble. Interest rates need to tick up to take some heat off of real estate.
actually worried to move right now
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