All Forum Posts by: Account Closed

Here's a deal I'm looking at - keen to hear thoughts:

3 bedroom SFH in Pueblo. It's in a so-so area. Maybe a C area but debatable.

Purchase cost $35,000

Rehab cost $10,000

Rental amount $750 / mth (very conservative - $800 is more likely) 

Taxes $300 yr

Insurance $500 yr

I'm buying cash so no interest cost. 

Based on the above is it a good buy? The costs are all accurate and rental is on the low side. 

Thanks! 

Thank you kindly. Does sound like it will be out of my 50k price range from the comments above... Is that right? 

Scott that is an awesome perspective and very well written. I appreciate the thoughts. 

Appreciation wise I think Pueblo hasn't really done much last 30 years but from a cash flow perspective you would have done really well. 

I still need to investigate more but I will take a previous years perspective on it. 

That's fair folks - I understand.  It's really not something critical - I just have an idea in my head and it might just not be possible.  I do appreciate the info and help. 

Thank you! 

Hi Jeffrey 

Thanks for the post. I don't really know much about Memphis - I'm trying to still to Ohio and Alabama at this stage as learning multiple markets is difficult to begin with. 

Not to say it's not a good place to make money or that it can't be successful but it's not an area I'd like to invest in at this stage at least until I can get my head around the other two. 

I do appreciate you suggesting it though - thanks very much! 

Hmmm... Interesting train of thought David. You challenged my thinking. 

Here's why - tell me if I'm wrong as I may be and so I'd rather be wrong and not lose my shirt and be right and naked :) 

The only area worth investing in In Colorado is Pueblo when you look at rents vs purchase price. The returns are similar to Ohio in many ways all things considered. 

The upshot of Ohio is that it is a much larger population close to a major city. Pueblo is an hour from Colorado Springs which is about 500k people and although larger, not a major hub relative to a place like Cleveland. Same goes for Alabama. I'm not set on a particular location, just thinking of buying closer to some large cities as Pueblo doesn't have a lot going for it from a growth perspective other than Marijuana.  

The second thing is that we may not always be in Colorado so any property I own here will be out of state at that point.  

So in an effort to diversity my portfolio I am looking in other states. When I say control, I mean that I can decide what to do with the home at any time from a rehab and sale /  lease perspective. 

A syndicate is like owning shares and is hands off.  

Feel free to poke holes in my reasoning if I'm wrong - honestly - I'm in this to learn, not to feel like I'm right. 

Thanks! 

Thanks Roger and Leslie.  To be honest my preference is to stick to realestate I can control.  I prefer to be a bit more hands on than what a syndication would offer. 

I do appreciate the advice though! 

At this stage I'm still learning the market and my whole perspective has to change. 

Australia is completely driven by capital growth - typically homes double in value every 7 to 10 years and have done so over the past 70 years. There's hasn't been a crash yet and personally I don't think there will be for some time to come. 

The US market is all about cash flow which is the opposite of what I'm used to. So, I need to recalibrate my perspective on things.  

Syndication won't give me the opportunity to do this and go through the process hence not the best fit for me at this time but certainty will keep in mind for future. 

Many thanks! 

Thanks Sunny. That may be true but I'm willing to give it a go! 

The problem with hard money is that I'm looking for long term buy and hold and hard money is typically short term and too expensive to make numbers work.

If there are hard money lenders that do buy and hold for reasonable rates I be absolutely interested in connecting with them.

Thanks! 

Thanks Daniel. I would prefer a condo so I could control it more. 

As my situation is a bit different to most I would have a problem having the place vacant for a few months of the year as i'd be buying cash so other than maintenance fees and taxes it won't cost me anything to hold. 

Thanks Lindsay.  It took a bit of effort but it's not impossible.  I had plenty of no's. I found a referral from a realtor that's well respected and got and intro to the bank that way. You could try something similar. 

Again my lender is in a small town I. Colorado and it's a small bank. But, it's great for want I'm doing. 

Also, things Re changing credit wise and what may have been a no in the past could be a yes today. Worth revisiting I believe.