Who here owns rental properties?

[32vfromhell]

I want to do this so badly, but am just not financially in a position to do shit right now but pay off debt and prepare for a kiddo on the way in 2 months.

[bcoop]

I may have the wife talked into our first rental. Need to find one first, of course.

We are looking for around $200,000-220,000 asking price and putting 20% down. I am seeing "for rent" homes on Zillow for $1,700-1,900 in neighborhoods with homes for sale in our same target asking price range. Doing the math, it won't cash flow me very much after a management company and after setting a little to the side each month to cover repairs. But at least it will be letting someone else pay off the mortgage for me.

You’re not going to want a house that doesn’t cash flow anything right now. You’ll get frustrated because you’ll be coming out of pocket for repairs with no cash flow.

[Shorty]

Why not just invest in REITs instead?

[KBScobravert]

Why not just invest in REITs instead?

Because from what I've heard, the only people that make money are the people running them, not the individual investors.

I'm willing to be wrong though. Are there any good news stories told by anyone NOT talking someone into investing into their REITS?

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[KBScobravert]

You’re not going to want a house that doesn’t cash flow anything right now. You’ll get frustrated because you’ll be coming out of pocket for repairs with no cash flow.

Agree. But if we buy right, and are able to pad the rent with repairs/expense fund built in by a few hundred each month, that will ad up over time.

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[beefed88]

Agree. But if we buy right, and are able to pad the rent with repairs/expense fund built in by a few hundred each month, that will ad up over time.

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If you get serious i would refinance your place and have cash to jump on a deal or find off the mls. What area would you be looking? Some neighborhoods have tons of rentals i would avoid them.

[beefed88]

Most are near Skillman and Royal; a few others are near Walnut by Richland. I just look on Zillow when I have some cash for a new one but none have been popping up lately. I bought the first 2 from a client who was sick of dealing with them and bought more because many of my employees have a hard time renting a place. I have never even considered dealing with section 8.

Section 8 is suppose to be a great deal if the cap rate works because rent is a set price and the ppl have to be goood tenants or they may not qualify for section 8.

[KBScobravert]

If you get serious i would refinance your place and have cash to jump on a deal or find off the mls. What area would you be looking? Some neighborhoods have tons of rentals i would avoid them.

I'm thinking keller, haslet, watauga.

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[akfodysvn]

2 yrs since my last post in this thread. I went from one to 16 units (closing soon)l on a purchase) and very little money out of pocket. Definitely having success up here with campus housimg

[KBScobravert]

2 yrs since my last post in this thread. I went from one to 16 units (closing soon)l on a purchase) and very little money out of pocket. Definitely having success up here with campus housimg

I sure would like to bend your ear. Care to chat on email? I'll PM you.

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[beefed88]

Check out matt mckeever on youtube. He has an asian guy named Kasey that gives some incredible advice.

[bcoop]

My brother buys, sells, and finances mortgages. Anyone here do that? The way the real estate market is right now that almost seems like a better way to go. He just had to foreclose on one, remodel, and put it on the market. Sold it to the second person that looked at it. 10% down, and 10% interest for 15 years.

[KBScobravert]

My brother buys, sells, and finances mortgages. Anyone here do that? The way the real estate market is right now that almost seems like a better way to go. He just had to foreclose on one, remodel, and put it on the market. Sold it to the second person that looked at it. 10% down, and 10% interest for 15 years.

I did the math. That is not a bad deal. At first I thought 10% is a terrible return. But, running the numbers that is not bad with a piece of property securing it.

Simple put.
150,000 purchase price
10% down for $15,000
135,000 financed for 10% at 15 years for $245,000 return.
15 years and profit $260,000 on $100,000 aint bad

Now though, managed mutual funds you can make more but there is nothing securing it like a piece of real estate.

[soap]

I’m interested in renting a house from a private owner. Not a A real estate firm and it’s close to impossible to find something like that.

[bcoop]

I did the math. That is not a bad deal. At first I thought 10% is a terrible return. But, running the numbers that is not bad with a piece of property securing it.

Simple put.
150,000 purchase price
10% down for $15,000
135,000 financed for 10% at 15 years for $245,000 return.
15 years and profit $260,000 on $100,000 aint bad

Now though, managed mutual funds you can make more but there is nothing securing it like a piece of real estate.

Exactly, less risk imo. He’s got a network of guys doing the same thing. This particular place he bought the mortgage for $39k. Sank $15k in to the flip when he had to foreclose. Sold for $90k, so he made money there, plus the returns on the note. I guess there is some hope that they continue to default after a few years. I need to find out more about the whole process but supposedly when you Owner Finance, you don’t have all the red tape when it’s time to evict. You can get them out in a week.