All Forum Posts by: Greg Moss

@Eric Calabrese

Hey Congrats! I think it is natural to be nervous. I am getting closer to closing my first deal, still doing my due diligence at the moment and even that can be stressful picking the right neighborhood and then the right house over other ones. I think people can run numbers in circles so making a move is the right play. I am in my 20s as well and i think it is only natural to get nervous on a big purchase for someone our age. Only right way is to jump in and that's what I am doing as well. There is certainly going to be things we don't pick up until we are landlords, but we will learn from each mistake that happens, and hopefully make some money along the way. 

Feel free to reach out anytime. I love talking real estate and Finance and getting as educated as I can through others and my own experiences. 

Greg 

@Julia Ann

I am currently looking out of state.I have yet to close on a property, but getting a lot closer after doing months of due diligence on a lot of different out of state areas. I am looking in the 150-200k price range and for any decent cash flow it is impossible to get something for that price point where I live currently. 

Would love to answer any other questions you have or try to help out, send me a direct message if you want to know more

Greg 

@Jason G.

Just wanted to give an update and say that roofstock is refunding my fee and I wanted to say that my frustrations have been cleared up with them.

Like I said originally they give great detail on the properties that they vet, and the inspection reports are great, this is a great place to get your feet wet in real estate and they lead you every step of the way. Had a great talk with @Zach Evanish and some of the things they are doing over there and it really is a seamless and less bogged down way to get into real estate and have a team of guys who really know the industry well. For anyone starting out i recommend at least going to roofstock.com to check out the properties they have listed and the breakdown of financials and inspections, this will let you fast track your learning. 

Greg 

@Laura Kaspari-Hohmann

Laura,

The small issue that i see when looking at a house like this if I ran these numbers for myself is there is very little room for error. With such a thin monthly cash flow you need your numbers to be perfect, and if things end up being higher after investing well then your cash flow might disappear. 

Check into will property taxes potentially go up on a new valuation?

will insurance be that cheap etc ?

I would also use a 10% cap ex rate instead of 7% so that will eat into it a little 

Cause all of a sudden you might end up with two to three 30-50 dollar increases and then your down to 100 or so cashflow a month when it is too late

I have definitely seen much worse proposed purchases on here, but for myself a 130k property I would probably look for 3-350/m minimum cash flow so I personally would pass on this (in terms of turnkey buy and hold)

Greg 

@Joe Ellis

The biggest problem I see with this is that buying a 5 unit building and putting 132k down for a 6k annual or 500/m Cashflow just doesn't seem worth it. If you are buying for other reasons then buy and hold rental then that's different (appreciation, live in one etc) but a 4.5% cash on cash for the extra risks that are involved with a multi family 5 unit just doesn't seem worth it.

People look for 6-8% sometimes on single family homes in good areas that provide virtually no headaches, If you are taking on this much risk you should look for more reward in my opinion

Greg 

@Devon Craychee

Devon, would love to speak to you about your situation. I am  Certified Financial Planner in New York and we deal with clients all throughout the country. Shoot me a direct message if you want to set up a quick call.

@Jason G.

Yea i agree, also roofstock is great for the hand holding and they do have great inspection reports and they do a lot of the leg work for you. Just wish i was able to get my 675 back, but you live and you learn. Great concept for roofstock, but just by the property choices cashflow is tough to come by

Greg 

I originally put an offer in on a roof stock property and had to pay the .5% of the fee on a 135,000 property, once I received the PSA, I did not like some of the terms with the lease agreement and did not go ahead and sign it, also the fact that you were not able to sign the PSA in terms of a contingency if you got financing (which they told me before), i was unable to get a refund of my $675 so overall not happy with roofstock. 

But its a blessing in disguise because dealing with other realtors on my own now i have found much better deals and cash flows, looking to close on a property by the end of the year. Looks like it was a $675 lesson for me, which may pay for itself after a few months rent!

Greg 

@Mike Adams

Glad to see some other people looking into the CT area, I am looking myself, still haven't zeroed in on one neighborhood, but looking at about 5-6 in different areas of CT. Going to check some properties out this weekend to get a better feel and some further due diligence 

well on a typical house for investing with a conventional mortgage of 25% down you are looking at properties around 140k. Also just have around 5-6k for closing costs and then the emergency fund. This is more the buy and hold rental method. Clearly costs will be different if you are buying and flipping.