All Forum Posts by: Aaron Yates

This is kind of a thought exercise and a practical question too. If you had $5000 cash, how would you personally go about investing that in real estate?

That is my situation and I'd like to do something with it. I've mostly been looking at mobile homes and small mobile home parks. But I would love to hear some of the communities thoughts on what you would do and maybe get some great ideas.

Many thanks,

Norm

Hi Norm. It really deoends on your market. In mine, bemieve it or not, you can pick up a house still every once in awhile for $5000-$10,000 that needs some reno.

Theae houses are not in Detroit and are not in war zones.

In fact I just put an offer in on a 3 bed, 1 bath, 1074 sq.ft. ranch with a 1 1/2 car detaches garage. I bid asking so if I los it then its bexause someone bid iver which is not likely at this point.

It will take $15,000K to rehab if I contract out everything bit I love working on houses and am even launching a renovation company because of this. So it wont take me but $8000-$10000 tops for repairs depending on materials I use.

The other option is find a local bank that finances investment properties just like a normal property. They are out there. We have two in our area. They require 20% down. Usually the reate will be 1 point above what you would qualify for as an owner occupied property. The you choose a 15, 20, or 30 year loan and no balloon.

Your purchase price will need to be around $30K and the house should be move in ready. And yes we have those in our market as well.

So my response may not work in your market. Do some research in areas around you to find out.

Good luck and if you ever have any questions just give me a shout.

1 Vote

I could buy 3 to 4 rentals in my market with 100K. My ROI would be between 20% to 25%. My cash flow after expenses and reserves would be $500 per property.

Wanna loan me that $100K?? LOL.

2 Votes

Originally posted by @Annette Hibbler:

Interesting to hear about other markets. I don't know how Zillow get's it's info but thought I'd put it out there anyway.
I can tell you that Detroit metro is experiencing a buying frenzy. Lots of positive changes happening all around. It's challenging keeping turnkey inventory up cause they sell very quickly. We've also experienced a $5-8K price increase on SF 3BD/1BA. Section 8's always go for higher prices.

Zillow pulls from other public sites. So if its posted inaccurately there then zillow posts it innacurately.

The worst thing about zillow is that i can claim YOUR ad as mine and scam would-be buyers or renters. I know this for a fact as someone has done this with my listings.

Zillow is garbage. Plain and simple.

2 Votes

Originally posted by @Scott Fair:

@Phillip Dwyer Thank you! I will be contacting him. I never underestimate the knowledge gained from a mentor, something I learned from many different ventures in life.

@Aaron Yates Hey Aaron. I'll PM you about the meetings, I'd love to go if there is one coming up soon. Both my wife and are interesting in meeting people that certainly will influence us.

Hey Scott. Jim called me today and mentioned going to breakfast Saturday.

Are you who hes meeting?

If so maybe Ill see you there. Ive been friends with Jim now for awhile. Hes a great person to know.

0 Votes

Originally posted by @Phillip Dwyer:

@Scott Fair Welcome to BP! There are several active BP people in your area. You can search by zip codes for members. I know a few. Hook up with @James Ross if you get a chance. He likes helping people.

Good luck!

Welcome to BP Scott. James is a great contact. Im in the neck of the woods as well so hit me up anytime. Ill help if I can as well.

I host a local meetup once a month as well. We get 25-30+ people a month. Its been a great way to network without paying a fee.

0 Votes

Originally posted by @Scott K.:

Originally posted by @Gary Gallo:

Seems to me that almost all of the bank owned properties have dried up. The only properties on the market are Fannie Mae and private sellers. Is anybody else finding this to be true? And if so, why do you think this is happening?

I am a HUD inspector and I am down in properties. I am worried about losing my job.

Used to have 140 just on my route now I am at a little over 50.

I will have to buy houses to earn some money

I could use your help inspector if you dont mind! A company interested in hiring my company for board ups, cleanouts and all that fun stuff says i need to become familiar with HUD guidelines first.

Where can I learn these from?

0 Votes

Originally posted by @Andrew Sherwin:

Not sure about all this 2% stuff. In Central Michigan there is no way. I'm looking at a nice duplex that is listed at 77k, could probably get it for 70k, but probably no lower. That would mean I'd have to rent each unit for an average of 700 dollars to hit 2%. Around here if I put a 2/1 on the rental market for 700 dollars, I would most likely have 100% vacancy. No one would be even half interested! Of course I have not yet made my first investment so I may have no clue. Right now my wife and I are renting a 2/1 for 400/month and with a little updating, our landlord could probably get 500 or 550 but no more. People said on here that the 2% rule happens in the Midwest, but I don't see it happening here.

Rules are not really rules with investing. This is a guideline.

Different markets bring different RIO's.

My market for instance brings high RIO's compared to most other states and areas.

So always keep in mind these percentages are guides. In fact until BP i had never heard of any of these rules.

I bought what made sense financially and thats that. No rules.

1 Vote

Originally posted by @Randy B.:

Well, I've listened to a few podcasts and read some blogs that came across my email, and I figured it was about time I hop on this forum.

Welcome to BP Randy. You will converse with alot of great people on here.

There are a few areas you can invest for all-in-costs of $30K or less still and they are not warzones or even bad areas.

@Tom A. and I host a monthly meetup for local networking.

Keep an eye out for next months event.

If you have any questions drop me a line.

Aaron Yates

0 Votes

Originally posted by @Annette Hibbler:

@Aaron Yates You know, you're a perfect example for many 'would be' investors out there who are too scared to act. Too scared to make a mistake. I just wrote a blog about this topic and would like to post it on BP tomorrow. But in the meantime, maybe you could help folks understand how you were able to overcome your fear of making a mistake. What you learned from your mistakes and how it helps you moving forward on your next deal?

I have done this a little on here already. In fact my first blog goes into a little detail about it.

I respond to posts when i am able to help. Im also trying to write an eBook about it.

Unfortunately i have so many tasks im working on none are finished. My main goal right now is acquiring my business license for my company expansion.

0 Votes

All Forum Posts by: Aaron Yates

Aaron Yates has started 47 posts and replied 625 times.

Post: Metro Detroit Real Estate Investors Meetup April 9th, 2014

Post: If all you had was $5000....

Post: How would you invest 100K?

Post: Detroit is on Zillow's Top Ten Buyer's Market List

Post: Excited to start REI!

Post: Excited to start REI!

Post: Michigan prices are going up

Post: 2% Rule

Post: "Wet-Behind-The-Ears" Rochester/Detroit, MI

Post: Add a second bathroom in second floor master?