All Forum Posts by: Stephen Masek

Originally posted by J Scott:

purchased ... for $36K, put in $4 in basic cosmetic work rented it for $900/month....nice house in a nice neighborhood where I'd happily let my wife and kids walk around outside in the middle of the night...

How much time involved to find them? The original poster, as with many people is employed, so has limited time available, quite different from someone who does this kind of thing full time.

Indeed, no offense, and I'm not easily offended.

I'd suggest using the $150,00 to pay off debt, then start saving to buy real estate. Being in debt is very danagerous if you do not have significant reserves. Of course, now is a good time to buy, but it will not be the last good time to buy.

So let's all get together some time. Karen, I'm still amazed, and happy for you, that you found that good deal on a burn-down in Lake Forest.

You are looking for a return greater than 20% before management, property taxes, and insurance. Are you joking? If any of us knew where such a thing existed, we'd have bought it.

You may be able to buy one or two houses outright and make 10%. Newer ones in nice neighborhoods with good schools may also have appreciation potential.

If there is old wood siding under the AC shingles, it is likely to be coated with lead-based paint, and that is also very highly regulated. If you had a good consultant inspect the house, you would know, and the same abatement contractor could remove all of it. You would then have an easy time with any plumbing, wiring or insulation work.

Originally posted by Dean Letfus:

Memphis has some of the best yields in the USA, look here!

We've got two houses there, but would like to find a better property manager. Any suggestions? We're also shopping for more properties, so what areas do you like? We prefer newer and nicer, such as the brick 3/2 in Cordova we got for $85,000.

Originally posted by David Niles:

I am not working in or endorsing the falls yet as it just doesnt seem to be ready for the bounce back, way too many boarded up homes of no value and the rental market is tough too.

The US side was a downright disgrace compared to the Canadian side when we visited in2008. We were shocked.

Originally posted by Joseph M:

How about Rochester,NY . I know it's not too close to NYC where you are but it should be pretty easy to cashflow there.

I was in Rochestder and drove around NY through Watkings Glen, the southwest corner, Niagara Falls, and back to Rochester a few years ago for the AWA convention. People everywhere complain about crushingly high property taxes. They do not have the Proposition 13 which we enjoy in California.

"Low cost" means different things to different people. Please be more specific.

There is also the issue of initial vs ongoing cost. We worked with an agent in Atlanta who was selling $11,000 and lower houses to one buyer, but I'll bet he has to almost completely re-do them between tenants, and has high turnover.

It is best to put 100% down, then you do not have to worry about loans in these dangerous economic times, with government run amok.

Some properties have appreciation potential, while others may be lucky to keep up with inflation.

Joel, all of that exterior wood on those quads looks like a big maintenance headache, and the numerous other buildings in the complex will tend to lock rents to whatever the others are charging.

Originally posted by Sheree Hsu:

Oh my gosh!!
Thanks Stephen.
Off I go to research asbestos.

Cheers,
Sheree in Atlanta

No need to try to learn it yourself. Just find a good local consultant and they will inspect the houses for asbestos and lead. It should cost $2,000 or less. Then no contractors or buyers will eb able to jerk you around,a s you will know what is or is not there.