All Forum Posts by: Pavan K.

Quote from @John Morgan:

@Rahul Tripati

Bad approach. Put 20% down on as many cash flowing SFR in C+ class hoods as you can find. Leverage your way to wealth. Put equity to use and create generational wealth. Trust me. You'll thank me in 10 years.

Thank You @John Morgan. I have changed my approach a bit like you said.

1. Tap into the Equity of my mortgage free home.Use HELOC to fund the downpayment .

2. Network to find a CPA who is good with Real estate investments and a Real estate Agent( considering my inexperience,untill I gain sufficient knowledge and confidence).

Im still paranoid about investing into c+ class hoods due to Tenant screening ,which I have no knowledge of.

May be I go with Class A neighborhood for this one SFR to be in a safe zone ,in the meantime ,gain knowledge/experience to know what it takes on how to exclude bad tenants

Quote from @Chris Seveney:

@Rahul Tripati

I have acquired properties with little to no cash flow and they end up doing well

Question is you are going to put $150,000 down and then cost you at a min $1,000 a month or $12k per year. Will that home appreciate more than 2% per year or what you are paying to make up some return on your $150k?

Also are you better off investing it elsewhere? There are a lot of opportunities out there which could be more passive where you could get $12-$15k/yr cash flow with your $150k and not have to continue to come out of pocket.

Food for thought.

Thank You Chris ! 

The only reason to consider going the route I mentioned is because I don't have prior experience nor I have a circle who can guide/advise me in dealing with Real Estate investments .
Since I can afford the SFH at this point is what pushing me to even consider the purchase.
Appreciation - Is a wait and watch game , unfortunately I don't have an answer to that.

May I know, what would be a better approach to make use of the capital?

New to RE investment and my Goal is Asset Appreciation.

Personal info : No debts , Emergency Funds in HYSA, paid off primary home valued at roughly 700K in today's market. Married and in  mid 40's

Came across a Single Family Residence in a developing community which is roughly at 600k$. I can put down 25% considering this will be a secondary home.

Reason for considering SFH - No prior RE experience, Tenant Class, Newer construction - no existing problems,newer townhomes are priced starting at 420k$'s ( higher HOA and still has a shared wall)

Looking at 4000$ max as monthly expense( mortgage+insurance+HOA+ Property Tax ).I say expense , assuming the residence is not occupied immediately (Vacancy) . I totally understand there won't be a positive cash flow ,infact Zero Cash flow which could last for months. If at all rented , expecting it to be 3000$ / month ,based on Zillow stats around the same size property/ location.

Pretty sure, this is not a best approach. But would you still recommend the approach? 

Hello RE community. I'm a newbie trying to learn about RE investing. Have been reading various forums on this site, information shared/ discussed is absolutely amazing.