Am I the only person buying rental property? Seems like that...
We like many investors LOVE flipping deals for the BIG checks or wholesaling deals for the FAST checks but I can honestly tell you the deals that I most get PUMPED about right now are Buy & Hold deals! Most gurus don't talk about them much and most investors look to it as the last thing to do with their money but I can honestly tell you that if you plan on being around real estate beyond this current BOOM cycle, you should consider the merits of having more rental units. The good ole days of tenants, toilets and taxes have become obsolete for savvy investors who now leverage systems, property managers and good home warranty's with deductibles to be paid by the renter for most repairs to minimize the management headaches!
Ideally you want what we call a Bread & Butter property located in a solid community where rents (For Houston) range from $1000 to $1300 a month with pretty good schools and close proximity to the freeways, downtown and the working epicenters around the city. Sometimes you come across deals that are in great condition, require only lipstick and a little foundation work (all houses in Houston at some point need it) and are ready to go like this one. We paid more than what we would normally pay but the house is nicer than most we buy...
ALL IN on this deal will be about $88k or so and we expect rent to be $1275 per month with about $45k in equity... a nice base hit that deal that will appreciate handsomely over the next 7-10 years (our projected hold period) and will provide a stable cash flow over that time frame! The average person could easily buy 6-10 properties similar to this in most markets in the US and build a substantial wealth generator for themselves without being a guru, quitting your job or having to figure out some complex strategy for doing real estate!
Have a great day closing profitable deals guys & gals...
Tyron in Houston!