All Forum Posts by: Zaheer Jabbar

Hey Guys, my  first investment, i am get $750, a month and taking away 525 a month after expenses. I did nothing on this house except cleaning the sewer.

Hey Guys, thanks for you input, however, I like to tell you that every zipcode is different when it comes to buying cheap properties. For example, there are some investment residential  properties in Ohio that are in wonderful conditions, where you don't have to do too much work but if you compare where i am investing in Mercer county pennsylvania (oh shucks I let out my Goldmine) with Ohio, some parts in Pennsylvania are more advantageous  for small investing,  why? There is an ongoing effort by the state  to revitalized communities and incentives for companies to bring jobs to these distressed  communities.  So the niche is finding  the areas which are recovering  or sustaining some degree  of recovery.

My investment strategy is: buy cheap houses which have potential for apprecation and build up a positive equity portfolio where i can buy duplexs.  I like to hold properties, not flip.

Hey guy, as you may know in the past I purchased my first investment property for $32,700. This property is now renting at $750.00 and after expenses, including taxes and a portion for big ticket items, I walk away with $550. My second investment is in contract and about to close in a month. It is a very nice brick home. Infact, both of these properties are brick single families. For the second investment, the seller wanted $30,000, we offered $19000 and they countered offer at $27000. I countered offer again at $21000, they countered at $25,000, I countered at $22000. They didn't change their offer. So I hold out knowing that no one will buy the house because not too many retailers will pay cash as i am doing and more so, investors would not buy it at that price. They will want it cheaper but my reasoning is this: in there years from now, you will never again get that house at that same price. At this point, the house is at a good location and ready for rental. The owers are company affiliated with Pennsylvania State and they take care of people who cant take care of themselves  so the state make sure the house is up-to-date. This is a steal. I will never  sell these two houses. The second house is ready for rental but need some cleaning up. I will get $725.00 in rent and expenses  $221.00 with a profit of $504.00. My object is to appreciate the second property, doing the floors, carpets, and most of the work myself. When i am finish, I will take a mortgage for the 3rd property  which i have my eyes on. I will used the 2nd property as collateral for 20% of the down payment. My aim is to all-time have a positive equities in my small portfolio. Also, just to tell you guys, i am learning to install hard wood floors and carpets and sheet rocks and other skills that will appreciate  houwr value. I dont have the money for these  services so i have to know it asma starter. So that was little successes.  

Hey guy, as you may know in the past I purchased my first investment property for $32,700. This property is now renting at $750.00 and after expenses, including taxes and a portion for big ticket items, I walk away with $550. My second investment is in contract and about to close in a month. It is a very nice brick home. Infact, both of these properties are brick single families. For the second investment, the seller wanted $30,000, we offered $19000 and they countered offer at $27000. I countered offer again at $21000, they countered at $25,000, I countered at $22000. They didn't change their offer. So I hold out knowing that no one will buy the house because not too many retailers will pay cash as i am doing and more so, investors would not buy it at that price. They will want it cheaper but my reasoning is this: in there years from now, you will never again get that house at that same price. At this point, the house is at a good location and ready for rental. The owers are company affiliated with Pennsylvania State and they take care of people who cant take care of themselves  so the state make sure the house is up-to-date. This is a steal. I will never  sell these two houses. The second house is ready for rental but need some cleaning up. I will get $725.00 in rent and expenses  $221.00 with a profit of $504.00. My object is to appreciate the second property, doing the floors, carpets, and most of the work myself. When i am finish, I will take a mortgage for the 3rd property  which i have my eyes on. I will used the 2nd property as collateral for 20% of the down payment. My aim is to all-time have a positive equities in my small portfolio. Also, just to tell you guys, i am learning to install hard wood floors and carpets and sheet rocks and other skills that will appreciate  house value. I dont have the money for these  services so i have to know it as a starter. So that was my little successes.  

I would just like to say: yes! I am a newbie and I ain't got the credentials to fully establish my point but what I can say from where I am now trying to get a property, and along with other price s in that zipcode,  the 2% rule works so nicely and glad Brandon came up with the rule, if I am correct. The truth what I gather so far is that the rule cannot be fully applicable all over America;  just look for the decent communities who life blood businesses went to China, and you would find people who are trying to bring back communities. This is where the gems are. Shucks! I let out my niche....

Hey Guys, thanks for your input. 

Here's a little more information: the neighborhood is not riddled with crime. It is very decent. The only problem they had was that the old steel mill went out a business, but the communities rebounded with gradual small imputus from the the retail and construction sectors. I could say that the real estate prices already bottom-out. The house prices are as low as it can be and you would not get back the same prices for those houses in a long time to come again. I paid 32,800 for my first investment and it already appreciated 3k in 5 months. So the neighborhood seems okay.

The only problem is with my new offer is that the property which we negotiated for 25k, the owner didn't do any major work on the property since 1992. What they did was only maintenance and at present, the house can be rented for 650, and following the 2% rule I will be okay for now. However, the reason for me wanted to pay 22k is because I understood some work needed to be done and they dont want to yield.  I would say based on negotiation techniques,  thd house really is 25k but they started out with 30k and reached to the figure they desired.  But I say 22k with my advantage of paying cash is a good deal.  My first home is a 100% better than that with mostly new  fixtures and replacement,  and it about 7 houses away from the one I want to aquire.  I showed rhem the comparison and they still didn't yield.  I feel like crying...to be honest. I will stick  out a little bit and see what happen cause there are other houses in better conditions, just for a liitle more and no one is buying so my hope is that buyers will not see what I am seeing and pass on it.

The second property is in a 100% better shape, with new fixtures and replacements and so on. Also, it could be rented for 650 least. I could negotiate for 23k or 24k. But the reason why I like the first property is because of location.

So both properties fit in the 2% rule. Thank god for now. But the prices from these stubborn people...

a

Hi Natalya,

Just google  Yellowpages.com and put in your zipcode and the title appraiser. There you would get a lot of local appraisers, call each one and throw your queries and see which one will work with you. Also you can type in your zipcode and the title appraisers in the google search bar and a ton of names you would get, too. So see which works. Thanks.

j

Hey Guys, as you may know I am now into real estate and did my first deal and now trying to da a second. I try to buy houses on the low-end prices but In goox shape and in rentable conditions. I saw a nice one in Pennsylvania for $30,000 and I made a cash offer for $19000. The agent counter offeredat 27. I said 21, the agent counter offered at 25 and never shifted since. I made an offer for 22 and they never bulge. 

The house is nice colonial brick and has an apprecation for 5 - 8k for over the year. The average prices for houses in a one mile radius is about 55k. Also, the house can be rented for  cool 650. 

I, also, have another option of 27000k, asking-price and that SFR js in better shape; with updated bathroom, redone polish floors, HWT, and a few more other stuff done.

I need some help in deciding which one and the price to be paid.

Yes! RentPrep.com and National Tenant Network is good as well..