All Forum Posts by: Dan Rowley

DO: just stick with your #s/projections and that will dictate the proper price.

DON'T: make it emotional or about FOMO, which is prevelant these days given how heated the market is and so many bids on decent properties.

To your negative cash flow comment.....  Warren Buffett once said, “The first rule of an investment is don’t lose money. And the second rule of an investment is don’t forget the first rule. And that’s all the rules there are.”

@Randy Beharry

Unfortunately you kind of get what you pay for and decent rental properties @ $100K are hardly out there anymore.  If that's what you're seeking there are option you can find but just know what you'd be getting into:  rougher areas with higher tenant turnover/delinquency and more deferred maintenance and other hassles.

@Matthew Stallone  - You referenced San Antonio.  And you may be aware of this already but you have to factor in the quite high property taxes in Texas.  Depending on which city/county you will pay between 2% and 3% of value in property tax each year, which cuts into cash flows so even if you're closer to the 1% rule you may not necessarily cash flow.

-------------------

Thanks for the reply Dan. I know getting both is difficult, ideally Id

like something close to 1% and a non stagnant market with appreciation.

That's why San Antonio is on my list. I feel like prices are somewhat

reasonable as well as a good chance for appreciation due to being so

close to Austin and the 35 corridor. What are your thoughts on San

Antonio?

@Matthew Stallone I don't want to be discouraging here... but cash flow is difficult to find (unless you put higher down payment $s down) in this environment in growth markets.  So, if you're investing for cash flow you will probably need to focus on secondary or probably even tertiary markets. Of those you listed Pittsburgh is probably your best bet for cash flow, but it won't have stellar growth statistics vs. many other cities.    Also, remember that markets are cyclical and so the environment is bound to change with some of the macro-economic and geo-political events that are at play.

I see the bigger advantage of Roofstock is to 'sell' a rental (vs. buying).  The sales commission when I sold through them a couple years back was significantly lower than traditional realtor commission.  Plus you can sell with tenant in place which is much more efficient.  It's possible they may have raised their commission rates since I did my sale, however.

There is nothing wrong with being patient and waiting, as business cycles will change.   I think it was Warren Buffet who said,
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"    Just keep some $s available and when things swing down you will be ready.

I'll echo what many others are saying in their responses.  I'd advise to not quit the job but rather figure out a way to start your RE investing journey while you still have income it will be much easier that way.  Whether it's investing in your first deal or whatever angle, there is going to be a lot less stress if you have a day job as it can take years to really see yields on RE investments.

wow, with relatives like that who needs enemies...

@Dan Dalby  Welcome to NC!  my family moved to Cary a year ago also from Bay Area.  Hope you settle in well and if you have any questions about the area you can holler @ me.  d2rowley @ yahoo.com