All Forum Posts by: Bob Ross

I was originally looking at a multi family for my first deal but recently been leaning towards buying a single family for lifestyle reasons.

I am still looking for this to help springboard my investing career. If buying a single family and do a renovation through perhaps a 203k fha loan, is this a good way to get some instant equity? Then maybe do a cash out refinance to buy a new deal or just keep as is and have a better LTV that the bank would look favorably on when applying for a loan for an additional property?

Any ideas?

Would a renovation even get me equity or just a renovated house that I am paying for?

Thanks

@Phillip Bshouty

It does, yes. I took a real estate finance coarse in college, I remember some of the formulas being pretty in depth, though as you say,I think that was more geared to firms doing large commercial investing. I presume most personal investors are doing more simplified calculations like you stated.

@Chris Stroup

Are private money and partners usually for

Short term deals/flips rather than buy and hold?

What are the basic formulas for real estate investing?

Irr?

Present value of money?

What are the numbers that real estate

Investors are running all the time?

Also, is there a good book for this for beginners?

Thanks

@Tom Wagner

Everything you said makes sense to me.

It's all about the numbers, it didn't make sense to me that PMI MUST always be avoided at all costs, which is what many people seem to always say

@Tom Wagner

Tom, is it 3.5 FHA better than 20 percent down if you have it?

Better to keep cash reserves?

Is a good paying job important to become wealthy in real estate? Or is it more important to buy a good first deal, whatever you can afford and build of if that?

Are there any stories where people didn’t have a well paying full time job but managed to become wealthy in real estate?

I am looking to just start out in investing.

I live in a high priced market (Boston)

I’d like to start investing in real estate but am wondering if it would be better to invest somewhere that is more affordable with better price to rent ratios, for example, fort Myers Florida.

Obviously, I would need to pay for property management, but if returns are much better and out-way property management costs,wouldn’t this be even better than being more “hands on” close to home in the worse performing area? It Negates having to do any maintenance yourself as well..

Why isn’t this the better route to go, why isn’t this the default of most investors? Looking for an area with best possible returns.

Thanks

Is it ever advisable to not pay 20 percent down even if you have the cash to do so?

Let’s say by not paying the 20 percent down requires pay pmi, but instead you choose to keep the money in stocks or just want the money in the bank for repairs or piece of mind.

I was thinking of buying a Multi-Family but would prefer to have a larger cushion when starting out. I figure I may get some returns in s mutual funds or something on the cash. Also I am in effect buying more house (as opposed to buying a cheaper property than would be easier to pay 20 percent down on) and therefore getting more appreciation on the larger amount borrowed. So is it not kind of a wash?

Long story short. Is it ever advisable to not pay 20 percent down to avoid pmi even when you can. Thanks.

Also all please keep in mind. Some people are just not handy...something one can just learn to be..?