All Forum Posts by: Jon Behlke

 My father in law gets this a lot, and I've figured out that most of the time, the people aren't trying to get the place listed for a few hundred bucks less, most of the time they're trying to see if you have another property that fits what they're looking for that they haven't seen the ad for.  Some of them are that dumb though.

Welcome Jason!  And your wife is awesome!

I won't count the insane costs of tuition for my accounting degree, although it really comes in handy for REI. Otherwise, it's been maybe $100 on books on particular subjects I'd like to know more about.

 I definitely agree that the cashflow should be the overriding factor, I was more or less giving you an out if after breaking down all other factors you were still unsure.  Every city has areas that are growing, areas that are stagnant/consistent, and areas that are declining.  

While I would never speculate on future appreciation as far as putting a number on it, I would certainly prefer to buy in an area that is on the rise over an area in decline.  This isn't so much in regards to value appreciation as it is on the ability to see an increase in rental rates.

You're the only person that can answer that question, as you are the only one that knows how you prioritize your values.

For example:  Do you have school aged children?  If so, then school district is a big concern and you may opt for the higher priced option.

If you're a single person, or young couple, are you just being an area snob who is not willing to make short term sacrifices for long term gains?

That doesn't even address the issue of market appreciation of the properties in question, or the expected turnover rates for each, or a host of other issues.

You'll have to do an analytical review of the pros and cons based on your values in addition to the items which you can actually quantify, and then base your decision on that.

Good Luck!

There are so many factors that go into answering that question.  My answer here in southwestern PA won't help you in the least if you're investing in Portland, OR where property prices are drastically higher.  

And like everyone else has said/will say, it depends on your goals.  

Personally, I could take $30k and buy a home in a C neighborhood, renovate it, and then either flip it or rent it out.  But my market is kind of a honey hole for those starting out in real estate.

Any final numbers for us?  Looks good, just interested in the stats and the new tenants.

I'll take the contrarian position and advocate 6 units over the 3 units if all else is equal.  Why?  Because a vacancy eats into my revenue stream by 16.7% per month rather than 33.3% per month.  If each of my 6 units rents for $1000/mo and each of my 3 units rents for $2000/mo, that's $6000 in revenue either way.  But if there's a vacancy one month, then I'm bringing in $5000 that month with the 6 units vs. $4000 with the 3 units.

You should've taken him/her up on the deal so long as they were okay with you prorating January, March, May, etc... because they are longer months and all....

Welcome to the community!  I am sure you will learn a lot here, I know I have.