All Forum Posts by: Greg Shaw

Agreed.
I am targeting a positive cash flow of 2000 per month within the next 5 years so I need to get more serious about this business.
At the same time because the market on this property is slow I am going to further explore, with the township, the posibality of spliting this into 3 properties. There is money in that angle but I won't gamble without solid info.
Thanks again. I will continue to follow this site.

greg

MikeOH

Based on your numbers I would have to agree.
However, To acomplish what you suggest I will definatly need to
change my approach to finding that first perfect property. I have been watching the market here and know the deals you seek do not surface through normal realestate data bases. I have also read enough on this site alone to confirm that.
I will need to get into the local RE investment group, if there is one here, and make some contacts. I can definatly see another year of searching if I target the elusive 2% solution in my market.
Bottom line for me is How Much is Enough ?
Decision time.

greg

I do have a lot to learn about the landlord/tenant laws and appreciate there importance.
As far as the financing is concerned I was looking at financing through a line of credit based on my personal home. By doing it this way I have the option at purchase of having the entire amount on the 6.25% variable with the option to put as much of my own money toward the loan at any time or the bank will allow me to convert it to a 6% morgage within the line of credit and still have additional money available up to a combined total of 180K. Flexability is important at this time because, at least for me, this is uncharted water. I don't know how well I swim yet.
Also I need to plan ahead if I want to expand in the future. Not sure of financing more when my personal line is used up.
Is my thinking flawed.

greg

I am looking to hold properties to create monthly income on top if my pension when I retire in a few years. My intent is to do all maintance my self time permitting (definatly after I retire).
Unfortunatly I don't know all the info I need on the seller yet. I doubt he is a distressed seller as he holds multiple realestate investments with a partner. I have heard he is looking to cash out re invest in funds of some sort and retire.
There is a slim chance I can convince the township to allow me to divide this into 3 lots and resell at 100K each with a further investment of 30K to 40K. That would be a bonus I am not counting on.
As for getting it for 125K not likley so I need to make an offer or move on.
Your numbers are helpful in confirming what I was seeing. Thanks

greg

I am trying to get my head around numbers.
My direction is to concentrate on cash flow.
Here is one option.

3 houses on one deed
1-2Br and 2-3Br
Approx. 40 yrs old, renovated inside and out 10 years ago
No immediate repairs required.
Total rental income 2005/month
Renters pay utilities
2 long term renters-10yrs, 5yrs plus one new renter
Taxes 1084/yr
Rural property near RR trax, so not much appreciation potential

Property is listed at 210000
single family in area are 140000 to 160000
I would estimate these seperatly would be 100000 (township won't seperate)
present owners have held for 3 years- I have to check on there purchase price
My financial options are as follows:
Offer 160000-170000 max
Finance total at 6.25% variable (interest only) lock in at any time
Same financing but pay up to 40000 down
Morgage at 6%
Opinions if any?

Thank you all for the encouragement.

greg

Thanks. I hope to try out the Deal Analyasis group with some examples to get a better feel for the local market opportunities.
Every one seemes to have a different idea as to what is acceptable or not but I believe this site will give me a better handle on REI than I presently have.

greg

I have been lurking, learning and following the market for about a year now and trying to get the nerve to jump in. My goal is to invest in rental properties moving up to a 6 to 8 unit building(s) in the next 5 years.
My ultimate goal is to have about 2000/month positive cash flow to supliment my pension income when I retire in 5 years. I am not looking to get rich just comfortable and once retired I will make my properties my part time job.
So am I realistic, a dreamer or an underachiever.

greg