All Forum Posts by: Matt DuSold

Well, I do feel better because I have been doing some of the things you guys have listed. I have been reading this religiously and been reading many books. 1 Minute to Rental Property Riches will be my book I take on my cruise with me for reading 8) I do not have a job at school but I do not have a car so it would become very difficult.

My parents want me to goto grad school and I do as well just as a back up plan basically so I will be taking night classes for 2 years leaving plenty of time for a job. I have looked into some PM companies but I will also look into title companies(thanks Licwidsand).

Again, thanks for your answers guys, I figure there is no better way to learn the right things to do than through the plethora of successful investors here.

Baltimore,

I think you are viewing things the same way I did for a while. I am from the north side of Chicago and when I heard about this rule I thought I would have to rent things for 4 grand a month. Mike has said in many posts not every market will go by the "50% rule" and in some markets (Ones like were in) it just isn't feasible. You can however rent for say something in the high 1. instead of 2% because of the cost you will still cash flow.

I think what you are having trouble realizing is in this 2% Mike (and anyone else who uses it) calculates costs of vacancies, replacing roofs, new windows, eventually there will be structural things that come up. With this 2% rule you are already accounting for these things therefore it will not be a huge "out of pocket" expense when they occur(because they will). Again, I am not an expert on this but it took me a while to understand it and I think I finally do, I do not know as much as Mike (many don't) but I'm pretty sure this is how he calculates.

After reading many posts I have seen a few "If only I started when I was your age" quotes from people who I have been viewing as very informative on posts from others on this website who are my age. I am a college senior now and am dying to get into real estate but want to finish school out strong and really learn about the business as much as I can before I get into it.

So I am wondering what many of you VERY successful people would do/would have done being my age and starting the business. I know I need to goto REI clubs and just continue to "study" the business. But is there something you wish you would have done earlier in your investing career? Or a certain part of REI you wish you would have gotten into? Thanks in advance for anyone who would like to share.

Haha OK then. After looking at the site and reading for the past year or so I have really only been looking at cash flow. I have noticed properties that talk about cap rate so I have looked into it a little bit but never real in-depth, so I figured I would ask. But short and sweet answers are always the best! Thanks.

Mike,

From previous readings I have picked up on your views with the whole 50% rule, good rule of thumb in certain circumstances and what not. What do you usually view as a good cap rate. Obviously certain situations would be different but is there something you would somewhat compare with the "50% rule"?

I'll be interested to see what others say to this. I feel as though we are in the same boat. I am also a college student (going into my Sr. year) and am very interested to really get into REI and feel college campuses are a great idea. Unfortunately I have not been able to purchase a property like you have.

I have brought this up before and many feel just the large unexpected costs make them a bit dangerous. I guess if you get a great deal it's a great deal no matter where its at.

I have also tried to possibly look into bigger cities near a college campus that way you can get the best of both worlds so to speak. Although with the big city usually come the bigger price tag and that is much of the reason I have looked a lot at more "state" schools in rural areas.

Alright! Thank you for the help. Looking for anything I can get at this point.

So let me just start my saying I may be overly upset about this...

So I am a college student and live in a house with my buddy. This should house 4 people but he will not find anyone so it is just us two. Last year we paid a reasonable price for the place my only gripe was that it was for 12 months when I come home in the summer. Not to big of a deal.

Well, my contract came yesterday and A) looks terrible because they took the old contract and scratched things out in pen to "rewrite the new one". B) The rooms cost 75 dollars more a month and now are is probably the most expensive rent in the city. They did not do enough to the house to had huge pluses to live outside of putting lights in the back.

I know I may be more mad than possible. I was told that there wouldn't be a change and then I get this contract at a time where I have no choice to sign it. Is this how things usually happen and I am realizing what it is like to be a renter instead of looking at it as a possible landlord? Thanks guys for your input.

Hey I like that rich23s! Are you talking like wisconsin border? Please share any experiences you have. Im in the Northwest burbs but I'm sure you are talking much more Northwest than that...

Wow. Thats everything I wanted to know and more. Thanks a lot. Very helpful!