Comments on: Real Estate: Flip or Rent?

By: Anonymous

Anonymous — Wed, 13 Apr 2011 14:10:39 +0000

Thats great if you can get a 30 year note on an investment property.
I would like to know who is financing that, as far as i know, you can only get
15 year notes on investment properties, this drives the monthly mortgage up, so check into
the financing terms first.

By: Anonymous

Anonymous — Tue, 11 Nov 2008 05:43:23 +0000

With the financial markets the way it is now, probably better to rent.

By: Sean

Sean — Mon, 15 Sep 2008 06:23:55 +0000

Hey Troy,
I am a college student looking for a way to get ahead of the game. Real Estate has become a huge interest of mine, and I know this is a good time to buy some and make positive cash flow.
I have my goal set on purchasing some real estate for rental purposes. Being that I am a college student, I don’t have the funds to purchase a six-figure house or apartment. I have been looking into foreclosures for this reason.
I defintely do not have the qualifications to get a loan from the bank, so my goal, at this point, was to get a loan from my father.
With this said, I guess my main question is what the purchasing of real estate consists of. You mentioned insurance and obviously the mortgage…are there always closing costs, etc etc…what are the main “costs” that need to be covered monthly.
I hope this can be clarified for me!
Thanks

By: Donald

Donald — Mon, 28 Jul 2008 12:27:37 +0000

I am also interested in knowing how to find deals if not on the MLS, as most of the websites I have been using (zillow, trulia, etc.) seem to be permutations of the MLS.

I would also be interested in the creative financing of the down payment, is this a future article? Thanks for the great info!

By: Rob

Rob — Fri, 25 Jul 2008 11:35:27 +0000

Hi Troy,

I am interested in the 8 creative ways to find 20% down. Currently I don’t have the cash to put 20% down for an investment property, but I know this is the perfect time to buy and do not want to miss the opportunity. I want to rent properties for the most part, not flip them. I’ll be looking for your next post. Thanks for the help!

By: Real Estate: Flip or Rent?

Real Estate: Flip or Rent? — Tue, 08 Jul 2008 21:34:02 +0000

[...] Troy Schuricht released a breaking post on Real Estate: Flip or Rent?. See below for a quick excerpt: [...]

By: Search Engine Optimization

Search Engine Optimization — Fri, 04 Jul 2008 06:29:13 +0000

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By: DJ Swanepoel

DJ Swanepoel — Thu, 03 Jul 2008 19:57:10 +0000

Great advice about investing. I would also add that before you enter into an investment, no matter how safe, you make sure you can afford it even if it fails. Gauge the positives and negatives and invest wisely; take the time and do your homework and figure out which option is best for you. Remember if something sounds too good to be true, it often is, so don’t be afraid to dig as deep as possible.

By: Search Engine Optimization

Search Engine Optimization — Mon, 30 Jun 2008 21:27:00 +0000

4-5 years ago i would have said flip baby flip
however Now I would say rent.

By: Another Investor

Another Investor — Mon, 30 Jun 2008 20:21:43 +0000

Hi Troy:

I am not in the market for that property, even at that price. It won’t cash flow for me. An inexperienced investor with the wrong property manager is going to have significantly negative cash flow (i.e. an alligator).

Properties I bought 8 to 12 years ago and refinanced when I could get unlimited 30 year fixed investor loans at 6 percent or less will cash flow today, even after current expenses. Expenses have risen much faster than rents have over that period. It would be impossible to create this portfolio today, even buying “wholesale”.

The cash flow investors that write for this site and look for 2 percent per month rent have expenses that as a percentage of the gross income are higher than houses in Tempe. You can cash flow on a lower rent percentage. However, my experience tells me that there is little if any inventory out there (retail or wholesale) that will cash flow when you apply realistic vacancy and operating expenses.

Pro forma operating numbers are just that – pro forma. If you buy in this market, understand you are betting on appreciation and are willing to defer positive cash flow. And you may have to feed an alligator for a few years.

By: Pinoso property seller

Pinoso property seller — Mon, 30 Jun 2008 19:02:10 +0000

Just goes to show that whatever the propertryt market is like, there are always opportunities out there.

By: Troy Schuricht

Troy Schuricht — Mon, 30 Jun 2008 18:37:40 +0000

Mr. Long Time Tempe Investor,

Please provide me with your contact information and I can forward you to a couple of wholesalers that could help you find the right property in Tempe. MLS is the last place you find the best deals.

Troy Schuricht