All Forum Posts by: Ed Brown

Before you pay any money to a company to help you wholesaling read some books on the subject and for sure read the BBB complaints on any schools/programs on how to make money in real estate.

Find a fixer upper and move in and do what you can yourself and hire contractor or subs to do the work you can not accomplish. Finding a turn key property in today's market at a discount will be difficult (not impossible-but DIFFICULT). Most people I show property to want turn key due to work load, family and children. Don't be afraid to make reasonable low ball offers as fixer upper property will be bringing lots of low ball offers. Of course if it's a steal jump on it! Best of luck, you will be learning a lot going forward.

Concern unless you are a cash buyer, will it qualify for a loan if not in livable condition? 

If it's a major re-do, you must be able to do the work yourself. I would look for a property without major work required and a better potential to be up and running sooner with income being generated. Owner financing may because it won't appraise do to livability problems. red flags all over-probably major issues; too good to be true or looking for a sucker to buy the headache? 

Looks rough on the outside and no interior pics? People will pass on it, either upgrade the outside and of course show the inside. If it's rough inside how do you expect people live inside the house and if you find a tenant they will probably be a headache tenant. Sorry to be brutal, but I have been a landlord for 45 years and always made the rental nice enough that I could live there.

Good points and thanks all for the information. Thinking about just keeping it as it's a nice property and no problem renting it out, no headaches or vacancies. Thanks again to all for the input!

Thanks for all the replies! Interesting the overall response was not "SELL IT"! My cash flow is great with all four properties, just thinking the building does not bring in much income for the money tied up in it. I have done 8 1031s to get to my current position in life. At this time I don't think I could pull money out as my CPA said it will appear I'm getting a loan to pay payments on my other loans. Also my last purchase a ranch/family compound had to be 50% down and hurt my cash position, so I believe it will be difficult to pull money out of the triplex since I'm retired and have there other mortgages.  My SFRs & duplex cash flow with positive income but do have current mortgages, so my net positive is 50% on each property monthly. But it's the numbers that make me think I'm earning too little on the 3M building, the duplex is worth $800k and brings $5,000 per month gross and the triplex brings in $7,000 a month. So with that much capital tied up my return is super low. But of course appreciation has been great on the triplex. 

I have an ocean view triplex in Orange County, CA. Value 3MIL and paid off; excellent location and strong rental market. Just thinking I'm not getting much income as income is about $7,000 per month before expenses (probably under market by about $1500, so income s/b $8500) . I'm thinking I would like to sell and get a larger building, where I can leverage my money and increase my income.  However I'm in my mid 60s and the property is not a problem with tenant turn over and a waiting line if there is a turn over. I don't want a headache property. Thinking of a commercial building or a strip center but those would have to be out of state, opinions? Also have a duplex and 2 SFRs