All Forum Posts by: Alex R.

When talking about 12% or 24% return cash ON CASH, I guess you are making the assumption that property is purchased and paid off full in cash.

What about a scenario where you put the 20% down payment and finance the rest with a low interest rate that is available in the market nowadays?

In that case ROI will be higher as your down payment was only a fraction of purchase price.

I used to live in Toledo, Ohio and worked in Ann arbor, MI.

This seems to be a good deal if Madison Heights is not a war zone or drug dealing gangs territory.

I heard in Detroit there are plenty of houses that are vacant and abandoned. State will appreciate you much if you take over some, so those properties will not be their problems anymore.

Technically speaking, bakersfield is in California central valley not NorCal.
Even Sacramento which is even more north than san francisco, is still a part of central valley.

And as a beginner real estate investor, I want to purchase properties within 15 minutes drive max, let alone in a different state.

Jon

I will assume when you purchase the property, your offer is 50 % of what property is really worth.

if this is true, how do you get these offers accepted

I am looking up some houses to fix and hold (rent) and I am doing some analysis, but there is absolutely no way to get a deal which fits the %2 rule.

Here is an example:

http://www.zillow.com/homedetails/2911-Nelson-St-Bakersfield-CA-93305/18892546_zpid/

This is a foreclosed property selling for $109,500. Let’s say you put an offer of 95 K and you are lucky enough to have it accepted.

2% of 95k = $1900

That is a far stretch from Average $900 - $1100 rent for similar houses in that neighborhood.

Or we can do the match another way: Let’s say we already have someone who has the money and wants to rent this place for $ 1100

In order to make the 2% rule work, our offer should be $55,000 (compared to the seller asking price of 109k) this offer doesn’t stand a chance.

First and foremost congratulations on this great achievement.

I just joined in january as well and I am very happy i found this website.

What i like to see here is a mobile version of the site or at least making the forum accessible through tapatalk

What are those other expenses besides PITI and maintenance costs ?

Thank you for your reply Joshua

I was thinking of using these website as a rough estimate to make a decision whether go and see a property or not.

Because within my criteria sometimes many properties become available and I need to filter some and then proceed with the remaining.

Congratulations on this great deal Tom. Considering it was your first deal makes it even more exciting.

I like to know what is the interest rate on your 155k loan and how did you finance it