All Forum Posts by: Shari Posey

It's interesting because I used to live in Dallas, actually Plano, and it really wasn't what I would consider a great place for real estate from an appreciation point of view. At that time (a long time ago) prices were so low that it didn't make sense not to buy and continue to rent.

You guys have given me a different perspective, although I think I'm happy with 1% that will appreciate because I don't have that many years until I want to live on that income.

Interesting link but I'm not sure I would really prefer a bunch of little houses that all bring in a couple hundred dollars each. Given the number of people who responded to that link, those 2-3% deals are like finding a gold nugget in the Grand Canyon. I guess I'm not that savvy or just not willing to wait that long to find that nugget to invest.

Michael--I know you said you don't get many offers accepted but how many properties have you bought for so little money that immediately had substantial rents? Is there anywhere in the U.S. (or in the world) where you could buy something for $100,000 that has income of $2750 per month?

Michael--Does this help...It has appreciated close to 3% per year on average since 1990. (This takes into account the crash and 11% appreciation in the past quarter.) It's in an area where regular people with decent jobs will want to rent.

So Jon, you would pay $280k max for those income and expense numbers?

The age is average for the area but it's been upgraded inside and out.

Why does city matter? I supposed by the way you said it, east Dallas rents aren't as high as east Austin. The income and expense numbers I posted are actual. If you moved the property to another location where those numbers were exactly the same, wouldn't the purchase price be the same? (Actually, it could be Long Beach but not a good part of the city.)

So, you are equally o.k. with a 15% cap rate and a 7% cap rate?

I'm with you all the way Rich! Your name says it all...you know how to live a "rich" life without needing a lot of money. You've probably been sensible/frugal about money most of your life--at least the last 20-30 years of it. I think $3000/mo is completely possible--obviously because you're doing it and are happy.

I think people who have spent much of their adult life living beyond their means (i.e. having credit card balances and use home equity to pay bills) can't imagine it's possible to have fun without a lot of (new) toys and going to pricey places.

Almost everything in life can be done for less money than you think...really, almost anything! Travel, entertainment, housing, health care (think overseas for surgeries), assisted living, food, utilities, education, clothing, etc. You name it and there is someone, like Rich, doing it for less than you can imagine.

As a buy & hold property, I'm curious to see what various investors would pay for a 4-plex with the following monthly income and expenses:

Income $2750 (total from 4 units)

Property taxes $390
Actual utilities & general maintenance $500 (common area utilities, pool, landscaping, trash, sewer, common water)
Insurance $70

I am not factoring in property management--I would do it myself.
I'm not factoring in repairs because it has been recently upgraded (electrical, plumbing, roof, stucco, interiors, etc.)

Neighborhood is pretty good; a little better than average for the town.

So what is the most you would pay?

I appreciate your analysis!

We have one rental in a light tan because we lived in that house and we just kept the walls the same color. In our other rentals we've been using "Swiss Coffee," which it's a very light cream color--almost white but not stark white. We use semi-gloss on the walls and trim so if a tenant has been gental with the unit, I can use Magic Eraser and don't have to paint. Tenants seem ok with sort of shiny walls.

This is probably a crazy post but do any of you find yourself playing with numbers on a property hoping it will look better so you'll be convinced to buy it? I find I'm doing this all the time now.

I've been looking a year and still haven't found anything that makes sense except for one short sale condo in Vegas I'm waiting for approval on but it's been 6 months and it might never work out.

I want to buy and hold forever. Originally I wanted to pay cash for properties which is what lead me to Vegas. Now I'm rethinking to buy a multifamily or two with financing and pay it off fast.

The ultimate goal is to have more income in retirement 10-12 years away. I would not be able to live solely off the few I currently own.

I am finding a couple of deals that cover PITI and operating costs based on a 30 year loan with 25% down. Cash flow from other properties and rental income will be added to the payment to pay them off in 10-12 years. Part of me says this is good enough for our ultimate goal, the other part of me says to have patience and keep looking.

I really want to stay within a 4-hour drive of Los Angeles so that is a limiting factor.

Any thoughts?