All Forum Posts by: Mark Seery
Mark Seery has started 1 posts and replied 24 times.
Originally posted by @Justin Gottuso:
@Mark Seery
$700,000 down payment for this 60 unit property in Columbus that grossed $430,000 income last year, $250,000 net operating income before the mortgage and $110,000 profit/$9,200 per month after paying the mortgage and all other expenses - but rents are below market rate and projected to increase from $110,000 to $190,000/$16,000 per month after increases over a few year period.
I don't know how much of a time suck that would be for an outofstater and/or if a 10% fee for a Property Manager would cover me there, but yeah, those kinds of numbers are attractive, putting aside all eggs in one basket considerations.
Originally posted by @Jay Hinrichs:
Originally posted by @Mark Seery:
Originally posted by @David Kyo:
@Mark Seery Numbers are hard to make work in the Bay Area
The bay area is 9 counties its not just Santa Clara county and the uber high prices.
Hey, thanks Jay, great perspective! Any county I could reasonably easily drive to, would provide a comfort level in terms of investing. If you have some areas / counties you would recommend, I would love to hear about it. Also, any suggestions on how to find meetups would be great as well.
Originally posted by @Igor Musiyets:
Did you look into Sacramento?
No. Thanks for suggesting, I will take a look
Originally posted by @Michael Haynes:
You need to bank the Cash and do some studies. The BP guys also need more info to give better advice. Do you have a JOB or a Business? Are you fed up with San Jose and able to move? Do you know how to do a Search on Zillow?
I spend a great deal of time on Zillow, I have a business but maybe transitioning to a job, I am not looking to move at this time. Thank you for your other suggestions, much appreciated!
Originally posted by @Philip Kauppila:
You could buy 3 houses totally paid for in Edmond, Oklahoma for $600,000. (Edmond, by the way, is one of the most affluent areas in Oklahoma).
Since you are starting fresh, I would encourage you to use a little bit of that money and travel to some different parts of the country and open your eyes to the possibilities. The increase in lifestyle and decrease in stress of living outside of California has to be experienced to be believed.
Thanks Philip. Is buying houses, completely, with cash a good investment strategy? That would be an interesting discussion to have. I guess it may be a way of generating income streams which would be a good thing for me. I'll take a look at Edmond, thanks for the suggestion.
My children live in CA and my business contacts in Tech are in the Bay area. I probably will be looking to be in the Bay area most of the time. But the point you make is good and worth consideration. Thanks.
-Mark
Originally posted by @Brandon B.:
Anyone giving you advice here without asking your risk tolerance preferences is not giving good advice.
Are you a gambler? You can buy properties that are turn-key in less-than-desirable areas and generate decent yields and have the properties fully managed. Roofstock has a sizable supply of those kinds of properties but I have never bought anything from them so I cannot give an honest review.
What if you were to put the $600K into a high-yield dividend stock account and then use that stock account as collateral to be able to draw equity from. While you don't have a property, you can earn some decent returns and then when you find something you like you can pull from the stock equity line and buy as if you were paying cash.
I am moderately handy. I am not patient. I am probably more in the gambler category. I'll take a look at Roofstock as part of the portfolio.
I am interested in the idea of putting a small DP on a new small place to lay my head, and then generating cash flow from the rest of it. I'm not dead yet, but I am not 30 either. I am probably more interested in developing income streams that long term wealth (in general, I would light to develop long term wealth for my children).
Originally posted by @John Lawrence:
in The Woodlands for a while. Market in Texas is hot right now although not as expensive as other areas, yet. I am looking at syndicators to buy into a few MF projects/deals with 120+ units in varying metros with good rent outlooks. I look for COC and value plays for 4-6 year run out on full return. LUINC is a good system to look into if you are in it for the long haul.
Thanks John, I will take a look at LUINC. I lived in The Woodlands in the early 90's. Great place. It was one of the happiest times of my life.
Originally posted by @Janet Behm:
Dude, Take a BREATH
Thanks Janet. Because I have been doing spreadsheet modeling for large corporations for a very long time, I tend to have confidence in my ability to model things. That said, I should get a CPA on this and my other activities. So perhaps the first step is to get the virtual team in place. Breath taken.
Originally posted by @Kevin McGuire:
@Mark Seery You’re welcome!
Syndications are great, I invest in one (Wellings Capital). Two benefits are that they can give you exposure to segments that otherwise would be difficult to access...
...If you go the route of buying your own rentals, my advice is that if you’re going to own one you should own three (or more). As others here have said, it spreads your risk...
...the whole point of all this: a good life!
Thanks Kevin, great thoughts!!!
Originally posted by @Account Closed:
So, not a great time to buy real estate, let alone investment property anywhere. In the Bay Area specifically, you need very high equity to make a property cash flow at all.
Hi Patrick, my share is 600K after the split (after I payoff my mortgage that was taken out to payout someone else). The Bay area dynamics do appear to be a stumbling block to me executing some strategies. Whether this is a good time to invest in real estate is something on my mind for the reasons you mention. There are those that say people should not try and time the market, but just take action.I am thinking through both perspectives. People have already started dropping prices in the Bay area, you can see it every day. Have they dropped to a sustainable level yet? Hard to know. There are still those voices in he Bay area asserting prices will continue to climb.