All Forum Posts by: Basit Siddiqi

Cash-flow can be predictable. 

I estimate that I get about $200 a door per month. 

This number will increase as the amount you can charge for rents increases. 

How much are you getting per door?
You want $10,000. Therefore, you need to divide $10,000 by the amount of monthly cash-flow per door to give you an approximate amount of doors you will need.

The key to real estate(or any other business) is being able to hedge your risk over the amount of properties and doors.
If you have 1 property and you have one vacancy / major repair, you will feel it.

However, if you have 30 properties and you have one vacancy / major repair, you are less likely to feel it.

Best of luck!

My parents lived in NYC for many years and moved to Katy 5 years ago.

Your money goes much further in Katy than it does in a lot of other areas.
The area is relatively safe and from what people tell me, the schools are also very good.

I personally don't like that Katy(and Houston) is a car centris city. There is little opportunity to walk.

Being in NYC gives you hopefully a strong salary where your money goes far in cities like Katy.
Best of luck!

Unfortunately, $20,000 is not enough to invest in real estate.

$20,000 as a 20% downpayment will go towards a $100,000 purchase. However, that leaves you without any money towards closing costs or reserves if something were to go wrong.

Furthermore, I think you should mention where you want to invest in along with the type of house that you want to invest in to better gauge how much money you will need to invest.

$100,000 may be enough for one person to invest but can also not be enough for another person to invest. It depends on what they want to invest in.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,000
Cash invested: $55,000

This is a 2/1 900 square foot house in Jacksonville, FL

How did you find this deal and how did you negotiate it?

This is an on-market property that I found on Zillow. The seller agent was asking for $75,000 and I made an offer for $55,000.
The seller agent accepted.

How did you finance this deal?

This was an all-cash purchase.

How did you add value to the deal?

I will need to make renovations to the property before we can list it for rent. I expect the property to need about $20,000 - $25,000 in renovations and it will be able to be rented for $1,000 to $1,100.

What was the outcome?

I will find out!

I personally don't like condo's as investments.

1) If you are talking about a large condo complex, you are competing with 100's of others who have the same exact floor plan. It is hard to compete with amenities or differences in the house. You can only compete on price.

2) You are at the whims of the condo board regarding condo fees

I like Miami as a place to invest in but I personally don't like condo's.

Best of luck!

I like the strategy of living in a high cost of living market and still investing in more affordable markets. 

I personally would take the $100,000 and use it as a down payment on a house.

 @Joseph Snyder Sure, I will try my best

If you have an investment and it is making a 6% return(Cash on cash and appreciation), I likely wouldn't sell it unless I can make atleast more than 6% elsewhere. However, I also have to factor in costs to sell my investment. If the cost to sell my investment is $5,000
The new investment has to make atleast 6% and $5,000 to be a worthwhile investment. Ideally, you would recoop the $5,000 over a 5 year period.

Correct - owning the property in an LLC or in your personal name will not change the characteristics of the income. If it is passive in your name, it would be considered passive in the LLC.

The realtor suggestion sounds like your accountant is looking to see if you would be able to claim as real estate professional status.

The requirement to become eligible for real estate professional status can be tough, especially if you are working a full-time job or don't have many rentals.

Best of luck.

David,

To get better / quality responses, you should be more detailed in your message.
The more detailed your message is, the more helpful the responses will be.

Jacksonville and Daytone are large cities. Is there a specific zip code or neighborhood that you are interested in?

Do you have a crystal clear criteria? What is your price range, what condition of the house are you willing to buy, How big of a house do you want? Do you want a SFH, MFH or commercial?

What type of help do you want? Do you want to connect with professionals? do you want to hear from other successful investors?

Best of luck to you!

you can start depreciating / deducting items when a property is placed into services, which in this case it sounds like it is in 2025.

Best of luck!