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re: Rental properties. How to start
Posted on 6/16/22 at 11:27 am to tide06
Posted on 6/16/22 at 11:27 am to tide06
quote:
I’d wait at least 6 months before jumping into the market
i scooped up plenty between 2013 and 2017 at great prices until things shot up. now so much way over priced. wait for a downturn or crash then scoop up buy n holds. plus interest rates were great then. now they will shoot up also. high prices may be great for flipping in certain areas but not buy n hold.
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Posted on 6/16/22 at 11:34 am to tigerfoot
Where are you located? I may be able to help teach you to get started!
Posted on 6/16/22 at 11:36 am to tigerfoot
I bought some of the projects I was involved with in 2006..yes they went down but no mortgage and I retained the income..now, I am up about 50% from that time...
Posted on 6/16/22 at 12:19 pm to Fat Bastard
Thank you!
I will read up on the links you provided.
And to clarify, I was not interested in a 350k home, just throwing it out there. I have spoken with PM company and really dont want to pay that 10%, but may if I buy a few lower end properties.
Was hoping to grab some homes in the 100k-150k range if I can find in the right areas. I may manage them myself if I can find my sweet spot.
I will read up on the links you provided.
And to clarify, I was not interested in a 350k home, just throwing it out there. I have spoken with PM company and really dont want to pay that 10%, but may if I buy a few lower end properties.
Was hoping to grab some homes in the 100k-150k range if I can find in the right areas. I may manage them myself if I can find my sweet spot.
Posted on 6/16/22 at 12:20 pm to BayouBengal23
I am in Cenla, and that is one of my hangups on entering this market. I kind of want to buy them local, but we aint exactly a thriving metropolis.
Posted on 6/16/22 at 12:22 pm to tigerfoot
I kind of want to buy them local, but we aint exactly a thriving metropolis.
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Buy local and your market if fine.
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Buy local and your market if fine.
Posted on 6/16/22 at 12:27 pm to tigerfoot
I’ve bought 15 doors over the last 2 years.
I’m 29 years old.
Happy to help answer any questions.
I’m 29 years old.
Happy to help answer any questions.
Posted on 6/16/22 at 12:34 pm to tigerfoot
When you are analyzing a deal, always put in the 10% for property management. I started with your mindset. I was going to buy property and manage it myself. That's great if you can. But if you have several and a W2 it gets hard. I use innago to help with that.
Once I got two properties I noticed repairs and rehab were eating away at my evenings and weekends, even if I am hiring someone to do the work it takes up your time. Its comforting knowing that I am covering my time in rent income (that 10%) and not just fixing stuff for free to save money.
Also consider a vacancy factor. I have never had to carry a mortgage for more than a month but still account for that.
My biggest advice is read some books, listen to podcast, and keep an eye on the market you want to invest in for the next several months. Also tell people you are investing in real estate. You will be surprised how some random person will remember and bring something to the table. And find a good CPA to help with depreciation, expenses, cost segregation.
Once I got two properties I noticed repairs and rehab were eating away at my evenings and weekends, even if I am hiring someone to do the work it takes up your time. Its comforting knowing that I am covering my time in rent income (that 10%) and not just fixing stuff for free to save money.
Also consider a vacancy factor. I have never had to carry a mortgage for more than a month but still account for that.
My biggest advice is read some books, listen to podcast, and keep an eye on the market you want to invest in for the next several months. Also tell people you are investing in real estate. You will be surprised how some random person will remember and bring something to the table. And find a good CPA to help with depreciation, expenses, cost segregation.
Posted on 6/16/22 at 12:40 pm to tigerfoot
Drive thru the poor/rough areas of town. Find trailers with renters for under $10k, pay cash, collect $600-800/month rent via cash every month and keep building.
My FIL and I have done this for 5 years. Currently holding 30 trailers, half we own property other half we pay lot rent of $150/month.
He is a GC so he can handle the vast majority of repairs and I provide the manual labor he needs when necessary.
My FIL and I have done this for 5 years. Currently holding 30 trailers, half we own property other half we pay lot rent of $150/month.
He is a GC so he can handle the vast majority of repairs and I provide the manual labor he needs when necessary.
Posted on 6/16/22 at 12:58 pm to LSUTigers00884
What's your email?
I've been seriously looking into rentals as of late as well. Got a large chunk of money liquid that I planned on investing in some rentals then prices\rates started climbing. Not really wanting to do rehabs. More so long term holds. Really just want good passive income in 15+ years when they are all paid off. Dont need the cash now.
I'm more interested in out of state areas (I'm located in SouthLa). Been looking heavily into turnkey style rentals but not sure they are super trustworthy either.
I've been seriously looking into rentals as of late as well. Got a large chunk of money liquid that I planned on investing in some rentals then prices\rates started climbing. Not really wanting to do rehabs. More so long term holds. Really just want good passive income in 15+ years when they are all paid off. Dont need the cash now.
I'm more interested in out of state areas (I'm located in SouthLa). Been looking heavily into turnkey style rentals but not sure they are super trustworthy either.
This post was edited on 6/16/22 at 1:01 pm
Posted on 6/16/22 at 1:05 pm to TheOcean
quote:
(5) Put as little down as possible. Run the numbers and surprisingly and you'll be amazed to see that you actually make more by putting less money down.
COC but not PCF. there is nothing wrong with putting more down to get him more cash flow. i am pretty sure he wants all the cash flow possible. a pretty COC means jack shite if he is not getting cash flow. plus he does not want to be OVER leveraged. you have to find the sweet spot for COC and positive cash flow.
This post was edited on 6/16/22 at 1:16 pm
Posted on 6/16/22 at 1:11 pm to tigerfoot
you need to learn to invest nationwide where the flip or cash flow markets are. you need areas that fit the checklist in my link i posted.
Posted on 6/16/22 at 1:13 pm to tigerfoot
quote:
I have spoken with PM company and really dont want to pay that 10%, but may if I buy a few lower end properties.
i only pay 8% but yes most will charge 10%. more properties you
get the less they will charge.
Posted on 6/16/22 at 2:28 pm to Fat Bastard
I’ve always loved the idea of rentals for the income but KNOW I’m not the type of person to want to deal with any prop management stuff what so ever. I’m about to inherit a paid off home worth ~225 and figured if I don’t try it out now I never will being given a starter. Having a fully paid one seems like a strong foundation for being able to add more doors quickly? That AC unit crapping out is already haunting me though lol
Posted on 6/16/22 at 2:28 pm to Fat Bastard
What markets have you been looking into? Most the stuff is seeing us St. Louis area
Posted on 6/16/22 at 2:39 pm to tigerfoot
Know your market rental rate per foot.
Before you buy the property, calculate rent based on what you WILL get per foot and not what you HOPE you’ll get.
If rents are going for $2 per foot then a
2,000 sq foot home should get $4,000 per month. Take that $4,000 and divide by .02 and get $200,000. that would be a very good purchase.
If the rents are going for $1 per foot then $200,000 is questionable.
Before you buy the property, calculate rent based on what you WILL get per foot and not what you HOPE you’ll get.
If rents are going for $2 per foot then a
2,000 sq foot home should get $4,000 per month. Take that $4,000 and divide by .02 and get $200,000. that would be a very good purchase.
If the rents are going for $1 per foot then $200,000 is questionable.
Posted on 6/16/22 at 2:51 pm to rocksteady
That AC unit crapping out is already haunting me though lol
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The Roof and HVAC are typically the two biggest costs on a house. You could put them on a credit card and pay them with cash flow if it's an issue.
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The Roof and HVAC are typically the two biggest costs on a house. You could put them on a credit card and pay them with cash flow if it's an issue.
Posted on 6/16/22 at 2:54 pm to tigerfoot
The best advice I can give is "know your area." For example, let's take Baton Rouge. There are generally 2 jurisdictions that reside over evictions, the City of BR or Justice of the Peace. If your area falls under the latter, you can have a deadbeat out in approximately 30 days, give or take. If the former aka wokeass City of BR, good luck. You're probably at 6 months and they all know the game, claiming medical reasons etc that forced them to not pay rent. In summary, "know your area."
Posted on 6/16/22 at 2:55 pm to SlidellCajun
Buying nearby a major university is a big plus….always a steady flow off students.
Only rent too law students or grad students….
NO PETS…..
Have a lease and do a video of the property inside and outside before they move in.
First and last months and a deposit
AGAIN NO PETS
Only rent too law students or grad students….
NO PETS…..
Have a lease and do a video of the property inside and outside before they move in.
First and last months and a deposit
AGAIN NO PETS
Posted on 6/16/22 at 2:58 pm to tigerfoot
buy multifamily properties. a 2 for 1 (duplex) or higher will give you better bang for the buck.
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