plenzmd1 Posted May 8, 2008 Share Posted May 8, 2008 Seriously, I am starting to believe that now is the time to start looking at buying at some real estate for investment purposes. My situation is that my principal residence is just about paid off, no other debt to speak off, and happened to have a few scheckles laying around looking for place to go to work for me. At this stage, my investments (outside my home equity)are about 80% equities and bonds, 20% commodities. Getting a little scared on the commodities but thats a different story. So, wifey poo and I are think time to invest in some real estate not only for capital gains, but we need some friggen tax relief. I do not know if we are at a bottom, but I do know you only know the bottom after it has been hit. My plan was to look for something that can generate rental income at or close to our monthly nut on the unit, minus whatever we need to pay a management company.(i have zero time to manage a property myself). Heres my question 1) What is the best type housing to buy for rentals.. 1 bedroom condos in cool urban area? 2 bedroom condo in same area? 4 bedroom home that would be close to a college? Home more out in the burbs that can be family rental? 2) Is there a reputable way to scour for foreclosures? I see all these places on the net, but I really have no idea where to start, any suggestions welcomed 3) any personal experience with this type of thing. Is it realistic to only buy one property? to be successful, do you need more than one? Again, not looking to earn my living at real estate, just a place to put some dollars to work. THX for any advice in advance Link to comment Share on other sites More sharing options...
stuckincincy Posted May 8, 2008 Share Posted May 8, 2008 Seriously, I am starting to believe that now is the time to start looking at buying at some real estate for investment purposes. My situation is that my principal residence is just about paid off, no other debt to speak off, and happened to have a few scheckles laying around looking for place to go to work for me. At this stage, my investments (outside my home equity)are about 80% equities and bonds, 20% commodities. Getting a little scared on the commodities but thats a different story. So, wifey poo and I are think time to invest in some real estate not only for capital gains, but we need some friggen tax relief. I do not know if we are at a bottom, but I do know you only know the bottom after it has been hit. My plan was to look for something that can generate rental income at or close to our monthly nut on the unit, minus whatever we need to pay a management company.(i have zero time to manage a property myself). Heres my question 1) What is the best type housing to buy for rentals.. 1 bedroom condos in cool urban area? 2 bedroom condo in same area? 4 bedroom home that would be close to a college? Home more out in the burbs that can be family rental? 2) Is there a reputable way to scour for foreclosures? I see all these places on the net, but I really have no idea where to start, any suggestions welcomed 3) any personal experience with this type of thing. Is it realistic to only buy one property? to be successful, do you need more than one? Again, not looking to earn my living at real estate, just a place to put some dollars to work. THX for any advice in advance Well, you could try this lady's approach. http://news.cincinnati.com/apps/pbcs.dll/a...D=2008805060342 However, she hasn't garnered much local sympathy... http://news.enquirer.com/apps/pbcs.dll/art.../805080317/1090 Link to comment Share on other sites More sharing options...
apuszczalowski Posted May 8, 2008 Share Posted May 8, 2008 I don't know if I would get into rental properties, sounds like too much of a headache, and up here, the rental laws are written in favor of the tenant, not the landlord. Flipping could be the way to go, except that its not looking like a good time to make money selling, and its something you have to have the time and skill to do so you can limit sub contractors to maximise profits Link to comment Share on other sites More sharing options...
Cynical Posted May 8, 2008 Share Posted May 8, 2008 Seriously, I am starting to believe that now is the time to start looking at buying at some real estate for investment purposes. My situation is that my principal residence is just about paid off, no other debt to speak off, and happened to have a few scheckles laying around looking for place to go to work for me. At this stage, my investments (outside my home equity)are about 80% equities and bonds, 20% commodities. Getting a little scared on the commodities but thats a different story. So, wifey poo and I are think time to invest in some real estate not only for capital gains, but we need some friggen tax relief. I do not know if we are at a bottom, but I do know you only know the bottom after it has been hit. My plan was to look for something that can generate rental income at or close to our monthly nut on the unit, minus whatever we need to pay a management company.(i have zero time to manage a property myself). Heres my question 1) What is the best type housing to buy for rentals.. 1 bedroom condos in cool urban area? 2 bedroom condo in same area? 4 bedroom home that would be close to a college? Home more out in the burbs that can be family rental? 2) Is there a reputable way to scour for foreclosures? I see all these places on the net, but I really have no idea where to start, any suggestions welcomed 3) any personal experience with this type of thing. Is it realistic to only buy one property? to be successful, do you need more than one? Again, not looking to earn my living at real estate, just a place to put some dollars to work. THX for any advice in advance The best thing you could do is hook up with the nearest Real Estate Investor group, or at the very least, an experienced investor. Even if you plan on doing real estate investing as a part time endeavor only. There are numerous reasons for this, more than I could put here in a short post, but here is a couple: Experienced real estate investors are a great source of information regarding the market. Where to look, what to look for, etc... Property management companies. Not every company lists their services in the phone book, and some of the best only advertise by word of mouth, and attending real estate investor group meetings to pitch their service directly to the investors. Link to comment Share on other sites More sharing options...
TheMadCap Posted May 8, 2008 Share Posted May 8, 2008 Well, you could try this lady's approach. http://news.cincinnati.com/apps/pbcs.dll/a...D=2008805060342 However, she hasn't garnered much local sympathy... http://news.enquirer.com/apps/pbcs.dll/art.../805080317/1090 Dum, Dum, Dum, Dum Dum!!!! Link to comment Share on other sites More sharing options...
Just Jack Posted May 8, 2008 Share Posted May 8, 2008 Mead is in the rental business. Send him a bottle of wine and he'll tell you everything he knows. Link to comment Share on other sites More sharing options...
tennesseeboy Posted May 8, 2008 Share Posted May 8, 2008 Mead is in the rental business. Send him a bottle of wine and he'll tell you everything he knows. My son and I own numerous properties in Albany. He does most of the work and handles tenants and it is a full time, but quite lucrative career. He also owned a restaurant in Saratoga operated it at a profit and is selling it to concentrate more on the real estate. The rental market (especially in Albany) is recession proof. Students need apartments, and people who are losing their homes in the terrible mortgage situation are needing a place to stay. If you think its just buying and collecting rent, think again. It is a lot of work and your have to have a knack for it. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted May 8, 2008 Share Posted May 8, 2008 I would recommend it. Get a duplex or mult-unit apartment bldg. Many tax advantages, if you don't like the hands on experience of tenants (Many problems) , I recommend you hire a property manager to handle it for you. In the long run, it's better that way anyways. Buy low, sell high ! Link to comment Share on other sites More sharing options...
\GoBillsInDallas/ Posted May 8, 2008 Share Posted May 8, 2008 Well, speaking as someone who has done "well" in real estate and development, I would suggest two things: 1. You need to find someone who can generate some "real" numbers for you in terms of income and expenditures. You're not going to find out these numbers by reading a book or watching an infomercial. 2. You need to ask yourself how much of your time you would be willing to spend doing this. If this is your first purchase, if you believe that it will only take 1 to 2 hours per week (even with a property manager), then there's a bridge in Brooklyn I'd like to sell you. Link to comment Share on other sites More sharing options...
bills_fan Posted May 8, 2008 Share Posted May 8, 2008 I had some success with short-term vacation rentals (ski and beach properties). The management company does just about everything, for 25% of the rental. Totally worth it, all I do is collect a check every month that, when evened out, covers the mortgages on the places and allows me to buy my wife a nice dinner. Of course, I knew the markets very well before I bought and always take care of my rental agents. My properties are rented aggressively. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted May 8, 2008 Share Posted May 8, 2008 I had some success with short-term vacation rentals (ski and beach properties). The management company does just about everything, for 25% of the rental. Totally worth it, all I do is collect a check every month that, when evened out, covers the mortgages on the places and allows me to buy my wife a nice dinner. Of course, I knew the markets very well before I bought and always take care of my rental agents. My properties are rented aggressively. 25% sounds high. I pay 10% here in San Diego. Link to comment Share on other sites More sharing options...
bills_fan Posted May 8, 2008 Share Posted May 8, 2008 25% sounds high. I pay 10% here in San Diego. They are vacation properties and thats what the prevailing rates are in the markets where I own. Also, when I tell you, I do nothing...I do nothing. Except cash a check that is... Link to comment Share on other sites More sharing options...
plenzmd1 Posted May 8, 2008 Author Share Posted May 8, 2008 Well, speaking as someone who has done "well" in real estate and development, I would suggest two things: 1. You need to find someone who can generate some "real" numbers for you in terms of income and expenditures. You're not going to find out these numbers by reading a book or watching an infomercial. 2. You need to ask yourself how much of your time you would be willing to spend doing this. If this is your first purchase, if you believe that it will only take 1 to 2 hours per week (even with a property manager), then there's a bridge in Brooklyn I'd like to sell you. Who could generate the real numbersw of which you speak. I was planning on hitting up the agent witht he most listings in the area I'm looking, which is called The Fan in Richmond. Type of place where both college kids and young profesionals like to hang out and live. Kinda of like a Geogetown in DC, but on a much smaller scale. So, I was going to get them to do a list of average rents by 1+ 2 bedrooms, 1+2 baths etc. Then, I was going to have them take me to a bunch of rentals currently on the market so I can get a sence of what $s equate to. Then, I felt I could start looking at the #s, what i could expect to generate per month, what I can write off etc with my bean counter . Anybody else I should be going to? In terms of more than 1-2 hrs per week even with a property manager, why would it take even 1-2 hrs a week? I would have thought if something breaks, they call me, i authorize the purchase, they get it fixed. Certainly when a lease expires or something like that ,like an eviction, I can see some extra time, but thats it. What am I missing? and I am not being sarcastic, I have never done and want to go in with my eyes wide open. THX for all the replies BTW, mucho appreciated Link to comment Share on other sites More sharing options...
Fan in San Diego Posted May 9, 2008 Share Posted May 9, 2008 They are vacation properties and thats what the prevailing rates are in the markets where I own. Also, when I tell you, I do nothing...I do nothing. Except cash a check that is... Same with me at 10%. Just get my money deposited into my account. Link to comment Share on other sites More sharing options...
gmac17 Posted May 9, 2008 Share Posted May 9, 2008 Same with me at 10%. Just get my money deposited into my account. Don't you know anything bills_fan?! I've heard of 35% in certain caribbean locations. Link to comment Share on other sites More sharing options...
bills_fan Posted May 9, 2008 Share Posted May 9, 2008 Don't you know anything bills_fan?! I've heard of 35% in certain caribbean locations. I'm not in the carribean? Siesta Key and Holiday Valley. Link to comment Share on other sites More sharing options...
Tcali Posted May 9, 2008 Share Posted May 9, 2008 Seriously, I am starting to believe that now is the time to start looking at buying at some real estate for investment purposes. My situation is that my principal residence is just about paid off, no other debt to speak off, and happened to have a few scheckles laying around looking for place to go to work for me. At this stage, my investments (outside my home equity)are about 80% equities and bonds, 20% commodities. Getting a little scared on the commodities but thats a different story. So, wifey poo and I are think time to invest in some real estate not only for capital gains, but we need some friggen tax relief. I do not know if we are at a bottom, but I do know you only know the bottom after it has been hit. My plan was to look for something that can generate rental income at or close to our monthly nut on the unit, minus whatever we need to pay a management company.(i have zero time to manage a property myself). Heres my question 1) What is the best type housing to buy for rentals.. 1 bedroom condos in cool urban area? 2 bedroom condo in same area? 4 bedroom home that would be close to a college? Home more out in the burbs that can be family rental? 2) Is there a reputable way to scour for foreclosures? I see all these places on the net, but I really have no idea where to start, any suggestions welcomed 3) any personal experience with this type of thing. Is it realistic to only buy one property? to be successful, do you need more than one? Again, not looking to earn my living at real estate, just a place to put some dollars to work. THX for any advice in advance Plenz Ive been in the game for awhile. I have some rentals. I would recommend--most likely-that you buy at this point. No one ever knows the bottom of a market.But one thing I do know -from very experienced realtors that I know-is that once we think we recognize a bottom it is too late.Then the crowd starts panicking into the market in the same way that people are panicked/scared to buy now. I would need to know what you are looking at/for. And I would need to know your location. So--I'd be happy to discuss it with you. Link to comment Share on other sites More sharing options...
Tcali Posted May 9, 2008 Share Posted May 9, 2008 Who could generate the real numbersw of which you speak. I was planning on hitting up the agent witht he most listings in the area I'm looking, which is called The Fan in Richmond. Type of place where both college kids and young profesionals like to hang out and live. Kinda of like a Geogetown in DC, but on a much smaller scale. So, I was going to get them to do a list of average rents by 1+ 2 bedrooms, 1+2 baths etc. Then, I was going to have them take me to a bunch of rentals currently on the market so I can get a sence of what $s equate to. Then, I felt I could start looking at the #s, what i could expect to generate per month, what I can write off etc with my bean counter . Anybody else I should be going to? In terms of more than 1-2 hrs per week even with a property manager, why would it take even 1-2 hrs a week? I would have thought if something breaks, they call me, i authorize the purchase, they get it fixed. Certainly when a lease expires or something like that ,like an eviction, I can see some extra time, but thats it. What am I missing? and I am not being sarcastic, I have never done and want to go in with my eyes wide open. THX for all the replies BTW, mucho appreciated PLenz. I would recommend in Richmond that you buy the very best place you can afford.In the best neighborhood. The properties in the nicest neighborhoods(college areas are generally just fine--but not in the center of frat houses or crappy student houses) hold their values the best and attract theleast problematic renters. use a property management company---which should charge about 5-6% per month of the rent...plus an upfront fee of maybe 500-1000$. Talk to then specifically about being TOUGH with the credit score requirement. credit score means LOTS. And it will prevent many future problems with deadbeats. Link to comment Share on other sites More sharing options...
gmac17 Posted May 9, 2008 Share Posted May 9, 2008 I'm not in the carribean? Siesta Key and Holiday Valley. i was giving sh*t to SD who can do better than all of us, i was concurring with you. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted May 9, 2008 Share Posted May 9, 2008 i was giving sh*t to SD who can do better than all of us, i was concurring with you. I wasn't trying to one up anybody, just compare notes as to what is a fair percentage to negotiate for with property managers. Link to comment Share on other sites More sharing options...
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