All Forum Posts by: Joe P.

Hi Kristine -- it really can be block by block and the property values (perceived or otherwise) can differ greatly. I live 2 blocks from properties that would probably sell for 100k or less than what my home is worth. The difference is a stone's throw...

If you want to give cross streets of the property or something for us to see, quite a few folks on the board are knowledgeable of the street-by-street perception.

The magic words: "second rental property" -- you'll need 25% down and perhaps some seasoning funds for any lender to touch it. As others said, try the HML route.

Another thought -- if you can't afford more than 15% down (and this is a gigantic leap on my part, so forgive me, it's not meant to sound terse), you might want to reconsider investing in the next property with your own funds. If the 15% down drains every investment penny you have, how will you cover closing costs or repairs? What happens if you need a new roof on your first rental property?

Apologies, $200 per door, or $4800 per year. That's not terrible...and someone is building your equity.

Missed something here, everyone is saying sell but it looks like his cash flow is $400 per month, per door? Couldn't he cash out refinance, keep this property, and invest the proceeds somewhere else? Or even HELOC? Asking sincerely.

I've had great home inspections where every single thing the inspector said would happen, did. I've also had the opposite.

I'm pretty sure no one gets into business to be drug through court. They have clauses you sign when you use their services to protect them. You'd have to seriously prove beyond a reasonable doubt (or a small claims judgement) that this person was NEGLIGIBLE or INCOMPETENT and I seriously doubt the $2000 it would take to fix these issues versus the X dollars it would take to contact a lawyer, bring them to small claims, etc., would make it worth your time.

But, if you insist on going down this path, check your contract/invoice with this company. Their obligation and recourse options should all be listed there. Might be SOL or buyer-beware in this scenario.

Dude @Carter Thomas, you're 23 and you're cash flowing almost a grand a month scot free? Live your life, bro. :)

Do you and your girlfriend work full time? Not to be rude, but is there a long term future there? Do you want to retire early?

You're asking us what area to focus in in real estate but you're missing the big picture. Your LIFE goals should define your REAL ESTATE goals, not the other way around.

If your goal is to retire by the time you're 30, then what do you need to make that happen? Cash flows, reserves, etc...how do you meet that goal? Do you want to keep working the 9-5 and use real estate as a side investment? Then invest accordingly.

You've got to figure out how/what you want out of life (in a perfect world), and then work like hell to get it. Invest smartly, realize the risks, plan for as much as you can, and feel good about it. Then you'll know if its SFH, MFH, syndication, REITs, etc. Those are the investment VEHICLES to get you to the DESTINATION. Get it?

I don't think it was disrepectful at all, frankly. Given my neighborhood and upbringing, I'd say it was one of the most respectful disagreements I've ever had. :)

You make further great points and in the Philly market (and a real estate broker/realtor) should weigh in to make sure I'm not lying), an additional half bath won't make or break a sale and its cost to cure is indeed prohibitive. What'll make a difference in this market is the size of the property, its layout, its finishes, and things like parking or outdoor space can literally add $50,000 to the properties final value over others.

Househacking. A great idea especially if you currently rent. Might as well put the money to something that can eliminate expense(s) for you and have someone pay your equity. Frankly I wish I had thought of it in my early 20s. I'd be far better off financially than I am now, but we can't change the past.

It's simple -- what are you doing now for rent/debt, and what can you get into in your area? If you think you can do something good like a SFH and rent out bedrooms, or an actual MFH with rooms you can rent out, do it.

For me to make that jump, I'd want all expenses paid on the property at a minimum. That would be PITI and utilities. And then I'd try and work the numbers so they're also covering CAPEX, maintenance, etc. That'll be the biggest problem, if something breaks in YOUR home, YOU have to take care of it.

If you're not ready for home costs, then don't bother. Save money, eliminate any debt that may exist, and wait for the right time to strike.

I don't know the market in Fall River, MA but I checked some websites and it seems like MFH homes are in the 250-350 range. Again, run the numbers. I think BP has come calculators that could help you with buy/hold and househacking.

These are students. I don't think a long term lease is an option for them. Turnover sucks, so if they're good, they're clean, and they're taking care of the place, I'd do the $50.

@Shane Means break down the $428...how much is tax, how much is insurance, how much everywhere else?

Reason I ask is my property in NJ is similar in price point and dollars invested. Rent is $1900 a month but the costs on this property are much higher -- its NJ, so high taxes, and also flood insurance.

My PITI is $925 a month, and I'm setting aside $532 a month (split between CAPEX, vacancy, and maintenance...and I'm over budget for the year on both CAPEX/maintenance). After other expenses like utilities and city costs, I'm cash flowing $180.

You might want to look into your CAPEX/maintenance numbers and make sure they make sense. A $100,000 property roof is roughly the same cost as a $200,000 property. A fridge costs the same amount. A new toilet costs the same amount. A sewer line needing to be expelled costs the same amount. And the latter 3 all happened to me in the first 5 months of owning the property. :)