All Forum Posts by: Account Closed

in addition, rents would rise each year and the risk associated with this cash flow would be quite low as they would all be newer homes in great neighborhoods.

@Max Maloney

With $325k, I could invest out of state in 9 properties and generate $3,600 per month, $43,000 per year in cash flow.  In addition, the appreciation would likely be more than 10% per year.

@Max Maloney

Conservative use of debt is your friend.  Leverage the bank's money to make more money.  Someone at your age should never pay off your mortgage.  Usage of debt is a risk, but you should rarely put more than 25% down on a single family rental purchase, doing so would be detrimental to your investment return.

That said, there are exceptions.

As you learn more about how to invest in real estate, you will have to learn how to leverage Other People's Money (OPM), this also includes the bank's money.  Taking on the right amount of leverage (an appropriate amount of risk for yourself) is critical to the generation of attractive returns in real estate.  And the ease with which you can obtain bank financing is one reason why real estate is usually a better investment than the stock market. 

@Max Maloney

I generate 12%+ Cash on Cash and 20%+ Internal Rates of Return on every out-of-state investment.  Investing locally means you will likely loose money for several years, before you're able to raise rents sufficiently to cash flow.

My belief is that investing for appreciation is speculation.  You cannot predict appreciation.

I invest to generate cash flow and can predict cash flow on every deal to a 95% certainty. 

@Max Maloney

San Francisco has the worst price-to-rent ratio nationally...yes, dead last.   I invest for cash flow, which explains why I focus on out-of-state investing.

I'm also live in San Francisco and I've invested nationally for over 12 years. If you want to meet up for coffee to further discuss let me know.

@Nelson M.

What quality of housing will you be buying for $20-50K?

What type of tenants will these houses attract?

How will you manage them?

How will this affect your life?

I suggest that you consider these questions.  At $20-50k, you're likely buying old property and it's likely not in good neighborhoods.  If you're buying out of state, I'd suggest buying newer, quality housing...

I've invested across multiple states for over 12 years.

Best of luck.

I'd be curious to see what type of return you can generate in Garland.  Prices are too high here.  I was buying in North Dallas from 2008 to 2012.  There are much better markets to be putting your money in...

Best of luck.

@Brandon G.

It's not needed to look at the inside.

Run the numbers and make an offer prior to wasting time touring.  Otherwise you might waste time and never get a contract accepted.  Then, once you have an acceptance at a price that works for you, then tour it.  If you discover additional items you might repair in the interior, further negotiate price down.

FYI: I have 50 to 100 offers out at any one time and I have not look at a single one of these properties.  If I get an acceptance, then and only then, will I waste my or my broker's time to tour the property.

@Mel Jeffrey

For most investors on BP and most investors in general...the money that goes into your first investment comes from savings.  I would suggest investing in yourself so you can generate more income from your job and maximizing your savings rate. 

Read the book "Richest Man in Babylon" to learn more:

http://www.amazon.com/The-Richest-Babylon-George-C...

What about perks, discounts, and group discounts? Anyone provide these? If so, please be specific.