Looking to invest $100k in rental properties
Member since 2018 · 11 posts · 4 votes
Looking to invest $100k in rental properties
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesOriginally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravo
I would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
my issue with them is buggered up title.. give me a good solid Deed of trust with fresh title insurance !!!
That's what I actually love about them Jay, take someone's problem off their hands for really cheap that no one else wants to tackle. The one well known fund I'm buying them from have over 10,000 and they don't even know whether they've sold at a tax sale or foreclosure until I do some DD and report back to them. Doing their job for them, lol.
Big difference with someone of your skill set and experience and the HEY I want to get into notes newbie.. big difference and steep learning curve.. if you need some help let me know I love complicated deals.. that no one wants.. My favorite that made me a bunch of money was buying trustee sales with IRS liens and competition was all freaked out about them and would not bid on them.. not knowing that the IRS redeems maybe .01% LOL..
34 Replies
- Rental Property Investor · Chicago, IL · Member since 2014 · 22 posts · 21 votes8y
Congrats! You're in a great spot!
Keep reading and talking to people. The market is super splintered, so I don't think it's fair to say 'we're headed into something.' For instance, A-class multifam properties are being built like crazy while in many areas there still appears to be a lack of single fam houses. But, you know, there's tons of stuff that falls under the umbrella of 'properties' and 'real estate'. From tax lien sales to mobile home parks. Tons of stuff.
Find a niche you like, run the numbers and give it a shot! With 100K you could put a down payment on a 400K turnkey multifam, or a decent vacation rental in a place where you like to visit. Or you could buy some tax-lien notes or a foreclosures or two. You could do plenty. Give it some thought and find what you like!
- Member since 2018 · 11 posts · 4 votes8y@Lincoln James thanks for the reply. I’m more interested in leveraging my funds into multiple properties. Meaning a couple of SFRs or a multi unit duplex triplex or four plex. Where the numbers would make sense. Too pricey in Southern California. I was a big fan of multi units but I’m leaning more to the SFRs. Unless I find a fairly good shape multi unit in state or out.
- Member since 2018 · 11 posts · 4 votes8y@Sam Shueh thanks for that advice. I will be talking to CPA soon who can help me. I was also considering to use the money to payoff my mortgage on my rental.Not sure if that was a good idea
- Specialist · Murrieta, CA · Member since 2016 · 24 posts · 18 votes8y@Hashim Jakvani I’m in a similar spot as you. I have some funds to get started but just looking for a good deal. So far the only areas I’m finding anything remotely close is in Riverside. Out of state I’m looking at Cleveland OH. Where are you looking in state?
- Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes8y
Many people advocate maximize borrowing power use leverage here. The people who lost their homes or are behind happened to be those taking lots of HELOC, vacation, helping their children. Many have lived in the same home over 30 or 40 years. Once one's income is depleted, there are still mortgage and other obligations. They kick themselves not to be debt free earlier. I am helping lots of borrowers to waive their PMI insurance. Almost all state they plan to accelerate their mortgage payments from the insurance waiver and hope to be out of mortgage debt. 30 years is a long time to clear assuming one does not refin. Good for you.
Sam Shueh
- Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes8y
Hey Hashim! I'm in CA too and all but one of my properties are out-of-state. I have those, most purchased turnkey but not all, and one duplex local to me in Venice. So I'm on both ends of the spectrum.
I'm not a Vegas fan as the prices there have skyrocketed now, but even when the prices were advantageous, I have never liked the fact that the primary industry there is entertainment--which is the first industry to tank in a recession. Not great for general market fundamentals.
Happy to chat anytime if you want to reach out!
- Member since 2018 · 11 posts · 4 votes8y@Johnny Bravo Nice to me you. While searching for SFRs and MU I look primarily in riverside county mainly corona riverside Murrieta and Moreno Valley. Those areas Is where my search had begun and still have interest in. I think I will be focusing more in riverside since prices are slightly lower and are little more desirable than Moreno Valley. I started looking first at MUs but wasn’t impressed with overall appearance with ones I had seen. They were run down and not much attractive to the price point that I was looking at which was $450k to $550k. A lot of cheap MUs do pop up in hemet which I’m not too interested.
- Member since 2018 · 11 posts · 4 votes8y@Ali Boone nice to meet you. It’s really nice to meet other people with similar interests. I am just trying to gain knowledge and network with others alike and being hopeful in making the right decisions. I too would like to be in a position similar to yours and many others in BP. I went to Vegas recently and had look at Mainly at SFRS. The ideal area seems to be southwest to Summerlin. Yes, prices have gone up out there. A lot of construction is out there as well with the new stadiums and freeway improvements. I am a picky buyer so I want to make sure it’s a really good investment so I am open to other markets. But Vegas was the first on my list
- Specialist · Easton, PA · Member since 2018 · 136 posts · 48 votes8y@Hashim Jakvani @Johnny bravo I would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
- Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes8y
Originally posted by @Hashim Jakvani:
@Ali Boone nice to meet you. It’s really nice to meet other people with similar interests. I am just trying to gain knowledge and network with others alike and being hopeful in making the right decisions. I too would like to be in a position similar to yours and many others in BP. I went to Vegas recently and had look at Mainly at SFRS. The ideal area seems to be southwest to Summerlin. Yes, prices have gone up out there. A lot of construction is out there as well with the new stadiums and freeway improvements. I am a picky buyer so I want to make sure it’s a really good investment so I am open to other markets. But Vegas was the first on my listWas there any cash flow on those SFRs? What puts Vegas at the top of your list?
- Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes8y
are you looking to invest locally or open to investing in other states too? Looks like the later since you've mentioned Las Vegas. Here is a link that might help you get started by narrowing down areas you want to focus on
You can also find more details about the city that are you looking at:
In terms of timing, no one knows. you can only play a guessing game, although I think most people are thinking that we are coming to end of cycle (but that doesn't mean you cant find a good property, just means its harder). Hope that helps!
- Member since 2018 · 11 posts · 4 votes8y@Ali Boone with 10% down and having as a vacation home and price of the home being roughly $350000 didn’t generate any cash flow according to rental comps
- 8yRobert AdamsBusiness MemberReal Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
If you have debt service it is very difficult to create positive cash flow unless putting a huge percentage down.
The Adams Team at Rothwell Gornt Companies4.970 Reviews - Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes8y
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
my issue with them is buggered up title.. give me a good solid Deed of trust with fresh title insurance !!!
- Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes8y
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
my issue with them is buggered up title.. give me a good solid Deed of trust with fresh title insurance !!!
That's what I actually love about them Jay, take someone's problem off their hands for really cheap that no one else wants to tackle. The one well known fund I'm buying them from have over 10,000 and they don't even know whether they've sold at a tax sale or foreclosure until I do some DD and report back to them. Doing their job for them, lol.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
my issue with them is buggered up title.. give me a good solid Deed of trust with fresh title insurance !!!
That's what I actually love about them Jay, take someone's problem off their hands for really cheap that no one else wants to tackle. The one well known fund I'm buying them from have over 10,000 and they don't even know whether they've sold at a tax sale or foreclosure until I do some DD and report back to them. Doing their job for them, lol.
Big difference with someone of your skill set and experience and the HEY I want to get into notes newbie.. big difference and steep learning curve.. if you need some help let me know I love complicated deals.. that no one wants.. My favorite that made me a bunch of money was buying trustee sales with IRS liens and competition was all freaked out about them and would not bid on them.. not knowing that the IRS redeems maybe .01% LOL..
- Investor · Salt Lake City, UT · Member since 2018 · 63 posts · 45 votes8y
Hey @Hashim Jakvani, I'm an investor in Cleveland and have helped a number of out of state investors navigate the area and acquire turnkey rentals.
Choose your area wisely! Here in Cleveland you could pick up 3 turnkey SFRs for that amount!
This article from BiggerPockets is one that I've shared quite a bit.
- Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes8y
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
my issue with them is buggered up title.. give me a good solid Deed of trust with fresh title insurance !!!
That's what I actually love about them Jay, take someone's problem off their hands for really cheap that no one else wants to tackle. The one well known fund I'm buying them from have over 10,000 and they don't even know whether they've sold at a tax sale or foreclosure until I do some DD and report back to them. Doing their job for them, lol.
Big difference with someone of your skill set and experience and the HEY I want to get into notes newbie.. big difference and steep learning curve.. if you need some help let me know I love complicated deals.. that no one wants.. My favorite that made me a bunch of money was buying trustee sales with IRS liens and competition was all freaked out about them and would not bid on them.. not knowing that the IRS redeems maybe .01% LOL..
IRS and state liens are my favorite, unless they are 1st in line! I Almost bought that one in Kokomo last week that I got the referral for a local from you on. Turns out the guy living there had a bunch of Dept of Rev for unpaid income taxes back in 2007 when he owned the property, then did a DIL to the Hedgey, which then did a land contract back to him. Now those are 1st in line. Big mess....they'll just have to let it go to tax sale. THis is the only time I'll say attorneys are worth their weight in gold, lol.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Tomko:
@Hashim Jakvani @Johnny bravoI would shy away from broadcasting what you have to invest. However, since the cast is out of the bag, you can get a much better return by investing in notes. I'm finalizing the acquisition of a delinquent CFD using funds from an investor. The return is far better than when I owned rentals. PM me for details, if interested.
while I like notes I don't like contract for deeds too risky when you can just simply buy good performing first trust deeds and not reperforming those are risky as well.
although I think the OP probably wants to be a landlord .. but for IRAs nothing beats good solid notes..
There are a lot of people buying CFD's nowadays as many hedge funds are divesting them, and the barrier to entry is low ($$ wise). Many of these buyers are going to get a rude awakening when they have to take these properties back only to find they are only worth $10K, and not the $40K BPO that a clueless realtor compiled.
my issue with them is buggered up title.. give me a good solid Deed of trust with fresh title insurance !!!
That's what I actually love about them Jay, take someone's problem off their hands for really cheap that no one else wants to tackle. The one well known fund I'm buying them from have over 10,000 and they don't even know whether they've sold at a tax sale or foreclosure until I do some DD and report back to them. Doing their job for them, lol.
Big difference with someone of your skill set and experience and the HEY I want to get into notes newbie.. big difference and steep learning curve.. if you need some help let me know I love complicated deals.. that no one wants.. My favorite that made me a bunch of money was buying trustee sales with IRS liens and competition was all freaked out about them and would not bid on them.. not knowing that the IRS redeems maybe .01% LOL..
IRS and state liens are my favorite, unless they are 1st in line! I Almost bought that one in Kokomo last week that I got the referral for a local from you on. Turns out the guy living there had a bunch of Dept of Rev for unpaid income taxes back in 2007 when he owned the property, then did a DIL to the Hedgey, which then did a land contract back to him. Now those are 1st in line. Big mess....they'll just have to let it go to tax sale. THis is the only time I'll say attorneys are worth their weight in gold, lol.
yes you have to get title insurance on a DIL but I know in the note business so much of these things get passed around without it.. its cheap insurance.. I see it often people take a dil not knowing their are liens and judgements.. now they just took title sub too those.. sometimes you simply have to foreclose out the instrument to clear title.. but shoot with all those who want to jump in the game with little to no experience you can imagine how many get fubared LOL.. Glad I could help anytime. !!!!
- Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes8y
Originally posted by @Hashim Jakvani:
@Ali Boone with 10% down and having as a vacation home and price of the home being roughly $350000 didn’t generate any cash flow according to rental compsI definitely wouldn't think so. Sooo...is Vegas still at the top of your list then?
- Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes8y
A lot of people here in TX say that we are among the most 'lender friendly' states, meaning that it is quick and easy to evict or foreclose here, and get ones property back, in relatively short period of time and without any redemption rights or any of that silliness. I won't make any statements like that myself, not being an expert, but I tend to believe that Texas is probably near the top of the list -- which leads me to my question:
Are there any good lists of good states vs bad states in terms of RE investment? Some kind of ranking or table or something that points out what factors and why?
A lot of folks on the west coast and east coast are either lending PM or buying up cashflow properties in the Midwest, parts of the South and for sure in Texas, and so I would imagine many of them have taken factors like this into account.
- Member since 2018 · 11 posts · 4 votes8y@Michinori Kaneko sorry for the late reply I appreciate the article and the city data. I had read this article recently. I haven’t factored the price to rent ratio to other cities cities that I have researched on. But it’s a good indication.
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