All Forum Posts by: Justin Z.

Hello Everyone!

I am currently a college student who lives with my parents and has loans to cover tuition.  I will be starting a part-time job this month that pays $250/month after taxes.  I have about $3,000 saved up.  I was thinking about buying a 4BR $50,000 house and renting out the other three rooms for $500/month.  I would then generate $1,500/month in income, of which perhaps $750/month would be profit.  I could use this cash flow to pay off my student loans.  

Do you see any problems with this plan?  Would I be better off just leasing a brand new Camaro?

Thanks!

-Justin

Hello,

I was thinking of buying a cheap $40,000 house and renting to a section 8 tenant.  I am worried, though, that no one will want to live in this house - section 8 or not.  From your experience, have there been any instances in which you could not find any section 8 tenants for your property?  What would you suggest as the minimum price for a house to ensure that there will be a large number of interested section 8 tenants?

Thank you so much!

How expensive of a house would you guys recommend for a first-time real estate deal?

Hello Everyone!

This is my first post to the BiggerPockets community.  I look forward to talking with you all!

I have an idea for a real estate investing deal that seems a bit too good to be true.  I noticed that in my city, there is an area of town known colloquially as the "ghetto".  Houses here range from $30,000-$60,000.  I am considering buying one of these houses and then renting it out.  The mortgage payment is around $184/month, yet some are being rented for $700/month.  

Example: http://www.zillow.com/homedetails/9318-N-Elmer-St-Tampa-FL-33612/45077624_zpid/

Could I really make $516/month passive income and $184/month (-interest) towards equity in the home?  This seems too good to be true.  Surely there will be expenses (cleaning the house, making repairs, changing lightbulbs, etc.), but how large exactly are these expenses?

Before I go ahead and buy a cheap, ghetto house with the goal of renting it out, is there anything I should be aware of?

Also, on a side note, would you recommend using Section 8 tenants if you can't find a regular tenant? For a 2 bedroom house, the HUD website says they will pay almost $1,000/month! This certainly seems too good to be true.

So...what am I missing about this business model? Is it really that easy?

Thank you all so much for your time.

Regards,

Justin