All Forum Posts by: Veeru Rao

We got a really good mortgage rate on one of them so there is actually some cash flow on that. On the other property, rent doesn't cover the mortgage. However, they pretty much even out in terms of total mortgage payment vs rent.

While I am excited that I finally invested in real estate, is it a good choice to purchase townhomes in the first place or should I look at investing in a different kind of property for future investments?

I understand townhomes won't appreciate as much as a single family home but our hope is to pay off principal along the way, start getting more cashflow and eventually pay off both properties.

I just came across this forum and thought I'd post this and get thoughts on if the I made the right move with the purchase of townhomes and what my other options are.

Thank you!

Definitely want to prioritize SFH over Townhomes or Condos, and totally avoid HOAs. In Raleigh, this is hard. So many houses have HOAs or even covenants.

If you got them at low rates, keep them and add on from there SFH. You really want to buy the lot, the floor of these physical assets is the land value and that's how you got to take a look at them.

Makes sense. Thank you!

0 Votes

Raleigh, North Carolina

Quote from @Jason Allen:

Quote from @Veeru Rao:

Quote from @Jason Allen:

Townhomes typically have an HOA, which can be pricey and eat cash flow. For future investments, I'd suggest a small multi-family that cash flows. A good rule of thumb for cash flow is the 1% rule. In case you're not familiar, that means each month's rent should equal 1% of the purchase price. For instance, a property you purchase for 200k should produce 2k a month in revenue. There are plenty of deals like this available in the Columbus, Ohio market.

Single family home is what I have in mind for the next purchase. I'd prefer something local just because it is easier to manage if it's closer.

Do you manage them yourself?

I have a property manager but plan do it it myself soon.

0 Votes

Raleigh, North Carolina

Quote from @Jason Allen:

Single family home is what I have in mind for the next purchase. I'd prefer something local just because it is easier to manage if it's closer.

0 Votes

Raleigh, North Carolina

Quote from @Benjamin Carver:

There's no WRONG answer honestly. This market is great for appreciation and CF is not the goal as you alluded to. Based on this a single family house will almost always appreciate at a faster rate than a townhome. But it all comes down to how much funds you have or if you'd rather buy 2 townhomes and spread your cash versus put it all into one basket one a house. Just make sure they allow rentals and that you can sell it easily if that ever should change.

Thank you!

0 Votes

Raleigh, North Carolina

Thank you Cory, for your insight. One of our property is in Raleigh and the other is in Wake Forest. We are happy with both the purchases but wanted to get an outside perspective on if this is a good start.

Also, thank you for letting me know about the event. I will attend if I am able to.

I am not sure if it warrants another post but is it advisable to start an LLC for the two properties I purchase or put them in a trust? Any thoughts?

0 Votes

Raleigh, North Carolina

Hi,

I have been wanting to invest in real estate for a while now and finally made a couple of investments back to back recently. They are both townhomes.

I understand townhomes won't appreciate as much as a single family home but our hope is to pay off principal along the way, start getting more cashflow and eventually pay off both properties.

I just came across this forum and thought I'd post this and get thoughts on if the I made the right move with the purchase of townhomes and what my other options are.

Thank you!

2 Votes

Raleigh, North Carolina

All Forum Posts by: Veeru Rao

Veeru Rao has started 1 posts and replied 6 times.

Post: After the fact - New Investment

Post: After the fact - New Investment

Post: After the fact - New Investment

Post: After the fact - New Investment

Post: After the fact - New Investment

Post: After the fact - New Investment