All Forum Posts by: Anthony Gayden

Originally posted by @Henley H.:

I'm looking at purchasing a house built in 1900, remodeled in 2008.  Not being especially savvy about the internal workings of a home and how to fix them, I'm looking for insights as to whether it's overall a good idea to venture into these waters?  Is it inevitable a home that is almost 120 years old will have more issues than a newer home, or does it depend on maintenance over the years?  What about plumbing?

Any insights are appreciated and welcome!  Thanks-

 I'm doing a rehab of my latest rental and it was built in 1900 as well. I ran into a few issues, but overall the house was solid. I replaced the roof, siding, and gutters on the outside. On the inside I have done some electrical and plumbing work.

The great thing about a lot of older housing is that a lot of it is distressed so there is a lot of potential for making some sweat equity. A lot of people are afraid of older homes but the issues are something that you just need to be aware of and budget for when rehabbing.

Originally posted by @Oscar Garcia:

I am 18 years old and living in NYC with a keen interest in real estate. My goal is to start a development company but I want to get started with investing. However, in all of my research the numbers being worked with are minuscule compared to comparable properties in NYC and as a college student I don't have that type of money to shell out. Is it even possible to start out in NYC if I find the right investors/mentors or should I consider moving to an affordable area with a growing population (at least compared to NYC) to start my career? Any advice would be much appreciated. 

 I agree with others, you don't "need" to move. However, I strongly suggest that you broaden your horizons and get out of your comfort zone. 

I had to move to the other side of the country before I really pushing towards my goals. I had to move before I got serious about my real estate and my finances. I had to move in order to grow and expand in ways I never thought imaginable.

Those talking about higher salary must not have noticed that you stated you were 18 and a college student. Also there are no guarantees you will be paid any higher in NYC than anywhere else. Especially without knowing what career field you will be working. What we do know is that you will have far higher cost of living in NYC compared with 99% of the country.

@Eric James

I think one of the best benefits of 1-4 units is the ability for almost anyone to get started investing. I do not come from wealth and my full-time career is not high paying. Still I was able to relatively easily scale up to multiple small properties.

Overcoming the first steps in investing are already hard. Trying to do that when properties are costing $1,000,000+ and you need down payments in the hundreds of thousands of dollars can seem impossible to a newbie coming from an average middle class job. Smaller properties offer the opportunity for a lot more people.

Originally posted by @John Paul:

Hi,

Our current savings account in bank pays 0.15% interest.

Wondering where is the best place to park cash (50K).

Until we decide where to invest, what would be the best place to park the cash so it can earn more interest ?

Thanks

I would keep it in the bank. Do you plan on using that money for a real estate purchase soon?

@Eric James

Let's not forget about the other costs associated with purchasing multiple 1-4 unit properties. The closing costs and the costs for inspections are going to be far higher for multiple single family homes purchased with bank financing. Also it will take more time and effort to locate and purchase a large number of single family homes.

I believe that single family homes are the future of rental real estate. The US is becoming more of a rental nation, but I do not believe that people with families will choose to live in apartment complexes over single family homes. People want space and privacy.

The big investors will overlook single family homes because it is more difficult to scale, but that means that smaller investors such as ourselves will have the opportunity to jump in there and make some real money.

Lately I have seen multifamily deals that were pure garbage. C class duplexes selling for two and a half times as much as a single family home in the same neighborhood. To me that is just idiotic. For that reason I am looking primarily at single family.

Gareth Fisher Sales is everything in business. I had to learn to weed out the sales pitches and focus on the info. Investing is not easy. This is nothing like any tv show. For a small landlord like me, it is a slow process over many years. There is still a lot of opportunities for little guys. Don't give up hope.

@Marcus Auerbach

I believe that wage growth in the middle and lower classes will continue to be slow. That is an unfortunate reality. I also believe that the size of the upper class and the upper middle classes is going to continue to swell.

I think that it could have a serious effect on our business long term. We are essentially trying to squeeze more money out of people who are not getting paid much more than they were 10 years ago.

Obviously in less expensive markets, we still have room for rent growth, but in markets that are more expensive, the lower and middle classes are stretched as far as they can go.

Thomas S. I agree with you. Several homes on my block are rentals and I worry about the effect it has on property values to an extent. However, I bought in this area specifically because the homes make good rentals and I will make the house a rental when I move out.

Douglas T. Try a different lender.

Patrick Keene I have done it. When I did it there was no book about it. It's a little more difficult buying property long distance. When I did it I couldn't find a title company that could do E-closing, so I had to take a day off work and go to Phoenix to sign paperwork. Aside from that everything I did was over the phone or on the internet. In terms of management it's the same. Everything is electronic and I haven't seen my two properties in Arizona in years. Lately I've been looking out of state again because even though Nebraska is relatively inexpensive, multi family is hard to find.