All Forum Posts by: Karen O.

My lonely story hardly compares to some posts, but I'm working on my 1st investment but 3rd property. I have a mortgage on the 2nd property and an interest only HELOC on the 1st. Both rates are under 4%. 18 mo 0% card standing by for finishes.

An unexpected mold issue may eat all my profits but I remain hopeful for even a small return and knowledge gained will qualify as a win.  

Have you considered rolling the $ into a new live in flip? 

No taxes on the net, so if you like the reno process why not go for the next one?

Decide on what you are willing to pay for the property first.  If you know that and are willing to pay that, than you can play the game until you hit your high.  Then, just become a bystander and watch.  

If you have the opportunity to place a bid early, set your max bid and walk away.  Let the system do what it is going to do.  

Remember what they say...Most will make $ in RE on the purchase, not on the sale.    

Good luck. 

This was a great thread.  

You mention "all in" or REI as an alternative to investing in equities. Remember that REI need not be all in. There's nothing that says that you couldn't invest the conventional way and in RE when the right opportunity comes along. It could be a passive investment, as a lender or in a fund, or it could be physical in the form of your own home - whether that's a SFR or a multi - investing in any of these is diversifying your portfolio. Others have already mentioned the benefits of using debt to leverage your capital. And if you like home improvement projects, purchase a fixer and you'll force equity and gain wealth via your projects. And then there are the options that controlling real property provides. While, some will say it's better to specialize, that may work for a doctor but all of your eggs in one basket can be just as risky Many of us learned that in '08. So, it's about striking the balance that's right for you when you're ready. Good luck.

My 2 cents is:  Don't use up all your cash on one property.  If you can buy a property with a 20% down payment and qualify for a loan with a good interest rate, why not?  Once the property is rented, the renter should be paying your mortgage and other expenses and hopefully paying you a little bit each month too.  

After a time, if you like being a RE investor who owns rental property, you can buy more.  If you don't like it - you may hate having to deal with tenants - you only have to unload the one and all your cash won't be tied up in that one property until you do.  

Good luck

@Tiffani Baggett  It pains me to hear about what you are seeing of the care given by some OOS investors.  Have you considered starting your own PM company then contacting these owners and offering them your services?  While I totally get why you'd do what you can to help in these neighborhoods where you also invest, it doesn't seem right that you'd not be paid for your time and energy.  With your own PM Co, you could be fixing a problem both for yourself and others who invest in the same area.  

@Linda D., I'd never heard of this store till I saw your post.  Gotta give a huge thanks since I found it today and I think I went to heaven for just a few minutes.  

The selection was remarkable and the pricing was awesome.  The facility was well laid out and well lit and the staff was accommodating  without being pushy.  I think I asked if I could come work there.  Thanks again for the referral.  

PS NYC area folks should know the store i visited is 15 min away in Paramus, NJ and was worth the trip.

A few thoughts:

What's  "a small % return"?

Do you know this person?

Have they done flips before?

Are you personally familiar with the quality of work?