Duplex with 36' Garages for $249k!

[RiverDiva]

I showed this place today to a client. In my opinion it will be gone VERY soon. Very clean and well taken care of places. Long term tenants on month to month contracts. Backs to a wash and gated backyards. The only adjoining wall is the garage. And about that....36' Garages with 8' Doors!!! $249k.

https://www.wardexre.com/war/maildoc/pbruce_1502491090-Aug-11-2017-6_38_10pm.html

Call me to schedule a showing.

Stacy Johnson
Realty Executives Lake Havasu
928-706-4200

 

[fishing fool]

That's right around the corner from me. 5 minutes to Windsor.

 

[milkmoney]

That's right around the corner from me. 5 minutes to Windsor.

Buy it [emoji106] [emoji202]

 

[OldSchoolBoats]

Damn that's a good deal. Going to send this to my mom. Pretty sure I can get a 2 unit 2nd home done, just have to kick out one of the renters....

 

[RiverDiva]

Damn that's a good deal. Going to send this to my mom. Pretty sure I can get a 2 unit 2nd home done, just have to kick out one of the renters....

You should be talking to her quick. They had one offer on the table still when I talked to him this afternoon.

 

[OldSchoolBoats]

You should be talking to her quick. They had one offer on the table still when I talked to him this afternoon.

We are texting back and forth right now.

Don't know if I can pull it off super quick, won't be back out until next Friday.

 

[Done-it-again]

What is the other unit renting for? And are they leaving or staying after the sale?

 

[RiverDiva]

What is the other unit renting for? And are they leaving or staying after the sale?

Both units are renting for $725 which in my opinion is low. And they both would love to stay. One has been there 8 years and one 9 years. They have kept the place very nice. Both single tenants no pets.

 

[the510]

very interesting.... what other listings like this do you have?

 

[2Driver]

Thats 7% on your investment. Plus all the right offs including trips to the river to check on the place.

Seems like a solid place to place some cash
[emoji106]

 

[boatpi]

This is what a wise investor would do ;

Never get rid of one of the tenants doing that cuts up your depreciation and some good income considering the rent in the next year could bounce up close to 900 per unit .

And a wise person would immediately look into adding a second or third bedroom to one of the units if that's permissible in the city then be able to add an outside access door after the small construction with a bathroom is done that would be the owners unit but on paper it would look like a second or third bedroom to the existing duplex . Block off the entrance from the original duplex to the newly added square footage and it becomes your owners unit none the wiser .

 

[LargeOrangeFont]

This looks pretty sweet. At that current rent (low) if you rent one full time and keep one for summer vacations and rent it to snowbirds in the winter you are looking at a $2000-$3000 annual or $165-$200 monthly loss all in (mortgage, taxes, insurance and utilities). This is before factoring in boat storage savings, hotel costs, and other write-offs if you self manage the property. It becomes a wash or a positive very quickly, and that is without any summer rentals at all.

If you ever get in a financial pinch, you can always rent the 2nd unit full time or to summer renters and at minimum cover your costs completely or make a profit.

 

[boatpi]

Depending on the current tenant you could even subdivide the garage providing access for storage only at the back for a current tenant and run out the rest of the garage perhaps 30 feet worth to someone else for probably 140 or 150 a month for their boat . On our money is in Las Vegas but as I look at this it's an excellent opportunity with a lot of possibility for the wise investor.

For those that have not invested in income property before don't start jumping into the thought that you could take one of the units and use it for your own. you're slicing yourself up for tax write off, and that's what it's really about in the big picture.

Add a room or subdivide the garage maybe into additional living space but figure another way around it and then come unit with two long-term tenants of something that's difficult to find especially those that take care of your property.

 

[LargeOrangeFont]

This is why you are rich and I just have a free vacation home.:bash:

I always value your advice. I have my duplex rented full time, but I just went through the buy one/keep one duplex deal with a friend that picked one up in this price range, and ran all the numbers with him.

 

[boatpi]

LOF, I survive pretty well in life but clearly you get it that's to your benefit you will do well also . this is not my cup of tea, but I think this is a good value especially with the rates are so low now, it will not last forever .

 

[boatpi]

Let me add this too, (AKA BPI's making $ ideas) purchasing A place like this the last half of the year is another smart move, because all the deductions and any repairs that you made are fully deductible from this year's income tax. Self manage!

If you're going to use one unit by yourself do not do it this year or wait until after the first of the year but in my opinion I would never do it. I would do the small ad on and take it from there, there's too much to be lost on paper. Think about it even if you came up for a weekend here and there to use your boat you could probably slide by if you did some work on the property always keep receipts from the local Home Depot and things like that.

so the motel that your rent for yourself and your family, the cost would be the deductible since you worked on the property for those days. also remember the IRS is not in a drone looking over your shoulder. But be realistic about it.

Let's say it needs low E glass windows because it's an older unit, insulation, garage doors/openers or some other repairs such as carpet things like that. in my not break the bank, if you do it this year you'll get such a huge tax write off as long as you self manage it it will probably bring you into the loss column. As long as your self manage which makes you an "active" owner in the eyes of the IRS. And if you do the work yourself all of your mileage and other related expenses in fuel our deductible. Your time and labor are not.

you might lose on paper 10K or $20,000, you should get a significant refund come to 2018 when you file your taxes.

Extra cash you spent for some repairs this calendar year you will likely see a large amount of that come back to you and your refund everything else being equal. Any mileage that you spent back-and-forth to Havasu overnight lodging things like this this year while researching this property or properties leading up to the purchase of this unit or for deductible in 2017 as long as your focus for the trip was on property investment .

Save those receipts including gas receipts. Note any phone calls or online activity made to a realtor or tax consultant all of these for document your losses for this year if you ever get audited.

A number of years ago when I started invest in Las Vegas I deducted six month worth of mileage hotel rooms etc. back-and-forth Las Vegas.

 

[lakemadness]

That 7% on your investment. Plus all the right offs including trips to the river to check on the place.

Seems like a solid place to place some cash
[emoji106]

As an active RE investor with multiple properties and buying up many more, I would pass right over that deal. IMO, that's not a great place for your cash/time. Rents are about 1/2% of the purchase price. They need to be at least 1% of purchase price to make it worth it.

Maybe if you want one side for your vaca home...

 

[lakemadness]

Here's some quick deal math:

Purchase $250K

20% down: $50K

Loan on a 30 year am at 4%: $1,000.00/month

Rents equal $1,450/month

You should estimate/prepare 50% of rent going towards expenses before debt. So you're left with $725/month in cash flow before debt service.

You'll have to come out of pocket $275/month to cover your monthly nut. That's a yearly CASH loss of $3,300. Boys and girls that's not a good deal.

 

[Xring01]

As an active RE investor with multiple properties and buying up many more, I would pass right over that deal. IMO, that's not a great place for your cash/time. Rents are about 1/2% of the purchase price. They need to be at least 1% of purchase price to make it worth it.

Maybe if you want one side for your vaca home...

Thanks for that info.

Do you have any experience in Ca, does the 1% change between CA NV or Az due to property taxs?

 

[lakemadness]

Just to share a deal I just did (actually two properties at the same time) This is the deal I hunt for. I'm on track to do about 10 of them in the next 12 months.

Purchase a home off market at 100K. Its appraised value is 125K. I buy it at 100K with all cash.

Get it rented (in this particular case it was already rented)

Rent is 1,150.00

I call up my bank, send them to get an appraisal which turns out at 125k. My deal with my bank is 80% loan to value.

80% of 125K is 100K. I pull 100% of my cash out.

100K loan on a 25 year am at 4.0% is $520/month

50% of my rent go towards expenses. So I have $575/month left to go towards debt service. That means I have a monthly positive cash flow of $55.00

Does anyone want to do that math and figure out what my cash on cash return is??? Remember, I have ZERO "cash" in the deal....

 

[lakemadness]

Thanks for that info.

Do you have any experience in Ca, does the 1% change between CA NV or Az due to property taxs?

No RE investment experience in CA. Maybe my 1% rule cant work there?

I did grow up in southern California. RE out there is a joke...

 

[LargeOrangeFont]

LOF, I survive pretty well in life but clearly you get it that's to your benefit you will do well also . this is not my cup of tea, but I think this is a good value especially with the rates are so low now, it will not last forever .

Thanks. From here on out I am going more towards your methodology for future investments and moving towards the rent at 1% of value equation. My duplex is not too far off that, and as of now I am getting a 10% yearly return on my investment, which is what I set out to do.

But I view something like this as a good solid starter investment property that you could actually use for vacations. If someone is taking 2-3 (or more) trips a year to Havasu and spending $2000-$3000+ When it is said and done, it represents a great opportunity to make those trips close to free, take even more trips, and spend more time with family and friends. No more towing the boat across the desert, no more renting houses or rooms, no more boat storage fees, reduced food costs from eating at home. You have an asset that will go up in value over time and at least cover its own costs and possibly make you a little money.

 

[Bobby V]

Here's some quick deal math:

Purchase $250K

20% down: $50K

Loan on a 30 year am at 4%: $1,000.00/month

Rents equal $1,450/month

You should estimate/prepare 50% of rent going towards expenses before debt. So you're left with $725/month in cash flow before debt service.

You'll have to come out of pocket $275/month to cover your monthly nut. That's a yearly CASH loss of $3,300. Boys and girls that's not a good deal.

Not sure what you mean by 50% of rent going to expenses? I have a rental in Havasu and don't have that much expenses. Are you referring to property taxes and insurance. The renters should be paying the utility bills.

 

[zhandfull]

If $725 rent is low, what's the average rate on a two bedroom house in Havasu for full time rental? How much is the average personal income in the service and retail industry in Havasu? Would it support much of a rent increase on this property or similar?

Back when I was a landlord myself, I liked to be just under market rates. I was able to find better tenants that stayed longer, maybe I was leaving money on the table.

 

[lakemadness]

Not sure what you mean by 50% of rent going to expenses? I have a rental in Havasu and don't have that much expenses. Are you referring to property taxes and insurance. The renters should be paying the utility bills.

insurance, taxes and maintenance/repairs.

50% is conservative and each month you may not even come close to spending all of that. But what about when the HVAC needs to be replaced or a roof is bad or any other large expense comes up? I plan on 50% over the long term.

 

[boatpi]

A cash purchase as described and pull your money out later on a loan is absolutely doable but not practical for most people do to the hundred thousand plus cash needed for purchase . and I don't think you're going to do it at 4% but probably much closer to five . Rural Arizona use it doesn't get quite special rates as we do in the heavily appreciating Southern California market. Also note that no it's not a 1% property tax that's the great thing about Arizona Nevada it's based on assessed value so look at their current tax roll.

in addition it's a little more complicated than that, it's at least three months to five months to take your money back out.

Fannie and Freddie want 3/6 months in between your cash purchase, then you have to get preapproved and till you wait.

In the meantime your cash is dormant and you don't have the ability should you have a type of cash to buy another property that my pop up on a good deal . Just my viewpoint but it does work for some.

. I've been down that road maybe others have a better way of doing it but I found in the end it takes five months. in addition it's a little more complicated than that it's at least three months to five months taking money back out Fannie Freddie want many months in between your cash purchase then you have to get preapproved and till you take your finance money back out. I've been down that road maybe others have a better way of doing it but I found in the end it takes five months . Too much down time for me.

And yes as suggested I was recommending that begins the ability to use it for a vacation house and income property with the right strategy it probably can be achieved with that property a unique place that probably has some more appreciation left in it due to the garage sizes. Those units might even get $1000 a month if they're in good shape in the markets right but I can't speak to that in lake Havasu right now. This property has to be looked at in a second way and that is it's a duplex so therefore you have two rental units with the double the possibilities to increase rent as time goes on. I see good upside in that.

And I think finding hundred thousand dollar properties they give you $1250 return a month are few and far between.

I probably buy into a three-year myself. For what it's worth at the very bottom of the market in Las Vegas I was buying properties that foreclosed at $350,000, for 105K, and they were bringing 1200 a month then. That was 2010, single-family house was built in 2005 to be specific. I still own five of them. If he's doing that great for him .

And I'll qualify that, I would never buy a property even at 100K unless the employment in the area is very good and that's why my investments are in the Las Vegas area. I could buy 100 houses tomorrow in Detroit for $25,000 a piece like bye and swampland in Florida .

Glad some good perspectives are being discussed here.

 

[LargeOrangeFont]

A cash purchase as described and pull your money out later on a loan is absolutely doable but not practical for most people do to the hundred thousand plus cash needed for purchase . and I don't think you're going to do it at 4% but probably much closer to five . Rural Arizona use it doesn't get quite special rates as we do in the heavily appreciating Southern California market. Also note that no it's not a 1% property tax that's the great thing about Arizona Nevada it's based on assessed value so look at their current tax roll.

in addition it's a little more complicated than that, it's at least three months to five months to take your money back out.

Fannie and Freddie want 3/6 months in between your cash purchase, then you have to get preapproved and till you wait.

In the meantime your cash is dormant and you don't have the ability should you have a type of cash to buy another property that my pop up on a good deal . Just my viewpoint but it does work for some.

. I've been down that road maybe others have a better way of doing it but I found in the end it takes five months. in addition it's a little more complicated than that it's at least three months to five months taking money back out Fannie Freddie want many months in between your cash purchase then you have to get preapproved and till you take your finance money back out. I've been down that road maybe others have a better way of doing it but I found in the end it takes five months . Too much down time for me.

And yes as suggested I was recommending that begins the ability to use it for a vacation house and income property with the right strategy it probably can be achieved with that property a unique place that probably has some more appreciation left in it due to the garage sizes. Those units might even get $1000 a month if they're in good shape in the markets right but I can't speak to that in lake Havasu right now. This property has to be looked at in a second way and that is it's a duplex so therefore you have two rental units with the double the possibilities to increase rent as time goes on. I see good upside in that.

And I think finding hundred thousand dollar properties they give you $1250 return a month are few and far between.

I probably buy into a three-year myself. For what it's worth at the very bottom of the market in Las Vegas I was buying properties that foreclosed at $350,000, for 105K, and they were bringing 1200 a month then. That was 2010, single-family house was built in 2005 to be specific. I still own five of them. If he's doing that great for him .

And I'll qualify that, I would never buy a property even at 100K unless the employment in the area is very good and that's why my investments are in the Las Vegas area. I could buy 100 houses tomorrow in Detroit for $25,000 a piece like bye and swampland in Florida .

Glad some good perspectives are being discussed here.

I'll probably reach out to you when I am ready to go on the next one. It will likely be in Vegas.

 

[Bobby V]

insurance, taxes and maintenance/repairs.

50% is conservative and each month you may not even come close to spending all of that. But what about when the HVAC needs to be replaced or a roof is bad or any other large expense comes up? I plan on 50% over the long term.

Got it. I can go for months without needing repairs. And then I go for a couple months where I do need some. But I do get some write offs on taxes. This duplex is newer so yes 50% seems a little conservative.

 

[lakemadness]

A cash purchase as described and pull your money out later on a loan is absolutely doable but not practical for most people do to the hundred thousand plus cash needed for purchase . and I don't think you're going to do it at 4% but probably much closer to five . Rural Arizona use it doesn't get quite special rates as we do in the heavily appreciating Southern California market. Also note that no it's not a 1% property tax that's the great thing about Arizona Nevada it's based on assessed value so look at their current tax roll.

in addition it's a little more complicated than that, it's at least three months to five months to take your money back out.

Fannie and Freddie want 3/6 months in between your cash purchase, then you have to get preapproved and till you wait.

In the meantime your cash is dormant and you don't have the ability should you have a type of cash to buy another property that my pop up on a good deal . Just my viewpoint but it does work for some.

. I've been down that road maybe others have a better way of doing it but I found in the end it takes five months. in addition it's a little more complicated than that it's at least three months to five months taking money back out Fannie Freddie want many months in between your cash purchase then you have to get preapproved and till you take your finance money back out. I've been down that road maybe others have a better way of doing it but I found in the end it takes five months . Too much down time for me.

And yes as suggested I was recommending that begins the ability to use it for a vacation house and income property with the right strategy it probably can be achieved with that property a unique place that probably has some more appreciation left in it due to the garage sizes. Those units might even get $1000 a month if they're in good shape in the markets right but I can't speak to that in lake Havasu right now. This property has to be looked at in a second way and that is it's a duplex so therefore you have two rental units with the double the possibilities to increase rent as time goes on. I see good upside in that.

And I think finding hundred thousand dollar properties they give you $1250 return a month are few and far between.

I probably buy into a three-year myself. For what it's worth at the very bottom of the market in Las Vegas I was buying properties that foreclosed at $350,000, for 105K, and they were bringing 1200 a month then. That was 2010, single-family house was built in 2005 to be specific. I still own five of them. If he's doing that great for him .

And I'll qualify that, I would never buy a property even at 100K unless the employment in the area is very good and that's why my investments are in the Las Vegas area. I could buy 100 houses tomorrow in Detroit for $25,000 a piece like bye and swampland in Florida .

Glad some good perspectives are being discussed here.

I'm not using fannie/freddie. They will only allow 10 mortgages per person. Surpassed that sometime ago. I have a goal of getting to 300 doors and will get there. I have projections of buying at least 25 properties in 2018. I have commercial loans. Yes, I can pull my money right back out in no time. Two weeks ago I bought two homes at one time. Loan paper work is happening right now. I'll have 100% of my cash back in about three weeks from now. This is nothing new to me. Its a rinse and repeat deal. To get good deals you have to move fast and that requires cash.

100K homes in my area are very doable. AZ or CA maybe not, I get that. The 100K homes I'm buying are in good areas, good schools and are in good condition. I don't do "slum lord" properties. On paper slum lord properties look fucking fantastic, crazy returns. But over the life of them they are junk investments that will drive you bat shit crazy.

 

[LargeOrangeFont]

If $725 rent is low, what's the average rate on a two bedroom house in Havasu for full time rental? How much is the average personal income in the service and retail industry in Havasu? Would it support much of a rent increase on this property or similar?

Back when I was a landlord myself, I liked to be just under market rates. I was able to find better tenants that stayed longer, maybe I was leaving money on the table.

I haven't looked in detail at that neighborhood, but you might be able to get to $800+. I rent one unit of mine with a smaller garage than this one for $800 including water/trash/sewer which is about $725 rent only. The other upgraded unit I rent for $875, water, trash, sewer included, again with a smaller garage.

Two bedroom houses start in the $850-$900 range in less desirable areas and may not be as nice. Also water/trash/sewer won't be included. So there is some wiggle room to flirt with 2 bedroom home rents. Mine also have allpiances included, which may help you get and keep renters.

Duplexes in Havasu can be hard because most are in less desireable areas and clumped together. So one by itself on a quiet street will command more money. I had little problems finding tenants at market value on a nice quiet street with new houses all around.

There seems to be plenty of jobs to support this level of rent.

 

[zhandfull]

Got it. I can go for months without needing repairs. And then I go for a couple months where I do need some. But I do get some write offs on taxes. This duplex is newer so yes 50% seems a little conservative.

Also may end up with a non payer and eviction at some point. That can get expensive fast!

 

[lakemadness]

Also may end up with a non payer and eviction at some point. That can get expensive fast!

Yes, part of my "50%" is for vacancy.

 

[Bobby V]

Also may end up with a non payer and eviction at some point. That can get expensive fast!

True. Knock on wood. In my 30 years of renting in Havasu I haven't had that problem.

 

[boatpi]

That is one thing I like about NV, if you ever have to evictions are or 10 days or less 😊.

 

[LargeOrangeFont]

True. Knock on wood. In my 30 years of renting in Havasu I haven't had that problem.

That is impressive.

 

[thetub]

No RE investment experience in CA. Maybe my 1% rule cant work there?

I did grow up in southern California. RE out there is a joke...

not a chance...

prices are soooo high you would have to buy all cash to see cash flow...

plus laws are changing or more liberal here...

an eviction can take 6 months and cost $10,000 ( lawyers file paperwork that delay things in courts)

plus democrats which are super majority are pushing to get rid of prop. 13 ( which will kill real estate, imagine your property tax bill doubling)


IMHO would not touch property here now. Its all foreign money or big hedge fund investors buying cash or people who own tons of property already.

there are people on these boards who think its a cake walk and owners are flush with cash and actually are pushing to get rid of prop. 13.

 

[Cole Trickle]

That is impressive.

I think Bobby rents his house half the year to snowbirds. I think he has had the same couple snowbirds for a long time.

Hard to compare a good snowbird renting a nice house vs. a local that can only afford a $700 duplex.....different pocket books

Personally I almost think the good deals in havasu ship has sailed. I'm holding on doing anything because at this point I just don't trust that the market can continue to appreciate much more....shall see

 

[LargeOrangeFont]

I think Bobby rents his house half the year to snowbirds. I think he has had the same couple snowbirds for a long time.

Hard to compare a good snowbird renting a nice house vs. a local that can only afford a $700 duplex.....different pocket books

Personally I almost think the good deals in havasu ship has sailed. I'm holding on doing anything because at this point I just don't trust that the market can continue to appreciate much more....shall see

Yea there are not "good" deals everywhere anymore, but some are out there. Rent always goes up however, as do values in the long term. If going for the long term and the deal makes sense, it is still a good time to buy.

 

[LargeOrangeFont]

No RE investment experience in CA. Maybe my 1% rule cant work there?

I did grow up in southern California. RE out there is a joke...

No it won't work here in CA, Vegas or AZ at the moment. I bought my house in OC at the bottom of the market and I can't get 1% of that 09 value in TODAYS market if I rented it.

I'd love to hear more about your market, what keeps people from buying if rent is 1%? I would imagine you are getting this rate at the lower end of the rental market/entry level houses? Do people just have 0 savings, too much debt, wages are too low, or what?

 

[lakemadness]

No it won't work here in CA, Vegas or AZ at the moment. I bought my house in OC at the bottom of the market and I can't get 1% of that 09 value in TODAYS market if I rented it.

I'd love to hear more about your market, what keeps people from buying if rent is 1%? I would imagine you are getting this rate at the lower end of the rental market/entry level houses? Do people just have 0 savings, too much debt, wages are too low, or what?

Wherever RE is reasonable and does not experience extreme highs and lows, average family income is fair I think has a strong rental market (for investors). I have not invested outside of my market, yet.

Who knows why there are so many people who rent... cant save enough for a down payment, poor credit, starting out and will eventually buy, not sure they'll be there long term... I've come across people that just flat out don't want to own. I bought a house from a middle aged lady about a year ago that just said "owning is not for me, I'll never own again"

Who knows, not everyone thinks the same.

If you want to make money long term and build wealth, you must work hard to find good deals. they're out there. I spend a fair amount on marketing, driving around, networking to find off market deals. I know a few people who no joke are buying on average one house per day in my market. Its their full time job. I don't plan to get to that point as I have three other businesses that need my attention that also help fund my RE purchases... 300 doors is my goal now and am on my way there.

If someone is telling you that you cant do this or that, good deals are no longer out there, you cant buy, rent and refi to get 100% of your cash back out immediately without a wait period they don't know what they're talking about, probably never made a wise RE investment. Effort and educating yourself and following your rules all make it happen. It aint rocket science...

 

[Bobby V]

I think Bobby rents his house half the year to snowbirds. I think he has had the same couple snowbirds for a long time.

Hard to compare a good snowbird renting a nice house vs. a local that can only afford a $700 duplex.....different pocket books

Personally I almost think the good deals in havasu ship has sailed. I'm holding on doing anything because at this point I just don't trust that the market can continue to appreciate much more....shall see

Same snowbird for over 15 years. Single guy from Colorado Springs. I worry every year that he makes it back, and when he does I worry that he leaves alive.

 

[boatdoc55]

Damn that's a good deal. Going to send this to my mom. Pretty sure I can get a 2 unit 2nd home done, just have to kick out one of the renters....

"kick out one of the renters", 8 and 9 year renters,That's a little harsh, I think I would have worded it a little different.

 

[LargeOrangeFont]

"kick out one of the renters", 8 and 9 year renters,That's a little harsh, I think I would have worded it a little different.

Why, the net-net is the same? Advising them they have 30 days to find a new place is the same as kicking them out.

 

[OldSchoolBoats]

"kick out one of the renters", 8 and 9 year renters,That's a little harsh, I think I would have worded it a little different.

Sorry, didn't think someone would be sensitive over the wording.

They would get 30 day notice as soon as we enter contract. I can't Finance it as a second home with renters in both units.

Why, the net-net is the same? Advising them they have 30 days to find a new place is the same as kicking them out.

 

[BHC Vic]

Sorry, didn't think someone would be sensitive over the wording.

They would get 30 day notice as soon as we enter contract. I can't Finance it as a second home with renters in both units.

😂😂😂 believe me... people get pretty butt hurt over wording 🙄

 

[boatdoc55]

I'm not butt hurt or sensitive about wording at all and in my younger years world have said or posted the same exact thing. As I get older though, with many rentals myself, I find that wording does make a big difference in renters attitudes. I was just pointing out that one gets a lot more flies with honey than vinegar.

 

[LargeOrangeFont]

 believe me... people get pretty butt hurt over wording 

Only alcoholics get butt hurt over wording 😂

 

[LargeOrangeFont]

Wherever RE is reasonable and does not experience extreme highs and lows, average family income is fair I think has a strong rental market (for investors). I have not invested outside of my market, yet.

Who knows why there are so many people who rent... cant save enough for a down payment, poor credit, starting out and will eventually buy, not sure they'll be there long term... I've come across people that just flat out don't want to own. I bought a house from a middle aged lady about a year ago that just said "owning is not for me, I'll never own again"

Who knows, not everyone thinks the same.

If you want to make money long term and build wealth, you must work hard to find good deals. they're out there. I spend a fair amount on marketing, driving around, networking to find off market deals. I know a few people who no joke are buying on average one house per day in my market. Its their full time job. I don't plan to get to that point as I have three other businesses that need my attention that also help fund my RE purchases... 300 doors is my goal now and am on my way there.

If someone is telling you that you cant do this or that, good deals are no longer out there, you cant buy, rent and refi to get 100% of your cash back out immediately without a wait period they don't know what they're talking about, probably never made a wise RE investment. Effort and educating yourself and following your rules all make it happen. It aint rocket science...

I completely get that you really make your money on the purchase, and in the end it is pretty much a formula you follow. In your market, you buy house, refi and pull back out the cash - what profit are you seeing year over year in a rental situation? Or are you just doing it repetitively, and there is profit in volume and having essentially no money in any of the properties. So when the house gets paid off in 30 years or you sell it in the meantime, that is where you get the money out of it. If so, I see how you could do 300 doors with that model. I want to get to 10-15, but I have been using a money down and leave it there strategy and am trying to get a return on that "investment" of around 10% yearly.

 

[lakemadness]

I completely get that you really make your money on the purchase, and in the end it is pretty much a formula you follow. In your market, you buy house, refi and pull back out the cash - what profit are you seeing year over year in a rental situation? Or are you just doing it repetitively, and there is profit in volume and having essentially no money in any of the properties. So when the house gets paid off in 30 years or you sell it in the meantime, that is where you get the money out of it. If so, I see how you could do 300 doors with that model. I want to get to 10-15, but I have been using a money down and leave it there strategy and am trying to get a return on that "investment" of around 10% yearly.

There is a profit in volume, but for me its more about the end game/exit. But, If i have zero or close to zero cash in the deal and it cash flows my return is off the charts... If one of my properties generates a net profit of say $1,200-$5,000 per year and I had no money in it, that's an incredible return. Multiply that numerous times/homes. My goal on paper is to see $100/month in positive cash flow per home. Some are better some are just under. At the end of the year, depending on repair expenses they might be much better than $100/month. Also, I have a property management company I pay about 7-10% of rent to handle them. If you have 5,10 or 15 properties you can manage that yourself and recognize a higher return.

My loans are mainly 20, some 25 years. Also, I captured/created 20ish% of equity at the purchase. The houses will appreciate over time, rent will increase. In several years monthly profit will start to grow. The end game in 20 years is either sell them off or hold them. 300 doors paid off and not having too much skin in the game, sign me up. I'm 34, I have (I hope) plenty of time.

 

[LargeOrangeFont]

There is a profit in volume, but for me its more about the end game/exit. But, If i have zero or close to zero cash in the deal and it cash flows my return is off the charts... If one of my properties generates a net profit of say $1,200-$5,000 per year and I had no money in it, that's an incredible return. Multiple that numerous times/homes. My goal on paper is to see $100/month in positive cash flow per home. Some are better some are just under. At the end of the year, depending on repair expenses they might be much better than $100/month. Also, I have a property management company I pay about 7-10% of rent to handle them. If you have 5,10 or 15 properties you can manage that yourself and recognize a higher return.

My loans are mainly 20, some 25 years. Also, I captured/created 20ish% of equity at the purchase. The houses will appreciate over time, rent will increase. In several years monthly profit will start to grow. The end game in 20 years is either sell them off or hold them. 300 doors paid off and not having too much skin in the game, sign me up. I'm 34, I have (I hope) plenty of time.

Gotcha. I don't think it could work in most areas of So Cal, I'll have to investigate a little more. In my neighborhood for instance a 3 bed 2 bath house is $600k+ and rents for $2700-$3000. No way to make it work without skin in the game. But if we are talking $150k houses that make $1200 in rent, yea I'd be doing a house a month and make the money in volume. I'd rather not do it in CA anyway though.