hello from a fellow indian/american investor

[Mohit Madaan]

Hello everybody,

I would like to start my journey at BP with this quick introduction post. My name is Mohit and i am from New Delhi india, i am 26 years old and travel to US couple of times a year for business. My office in US is in Stockton, CA area but i have been to many large cities in US.

Real estate - Fun ride for me... First deal i bought about 4 years ago was for $100,000 and i just sold it yesterday for about $190,000 in india. The dollar is so strong now a days vs INR otherwise it could have been more than double in terms of USD. It is more than double in INR for sure.

Anyway, i own a commercial building in New Delhi area which is worth around a million dollar and is fetching about $4000 monthly rental income. Own few small land deals in india for about $200k (Small land lots that i might build houses on before selling).

Currently digging more information on investing in rentals in US before of the following reasons:

a) Rentals are crazy high on residential properties as compare to india. My $200,000 apartment was bringing in $210 a month in india.

b) interest rates are super low

c) Properties are selling at almost all time low in last 10 years.

I think i am going to start with a small project say a $100k house in Stockton area where i put 20 to 30k down and let the bank finance rest. I know foreigner mortgage is a little hard but i am doing my research in that area already. So the thought process right now is get get a mortgage at maximum LTV and buy a house and rent it out and see the original down payment grow.

So say i put down $30k and gets a $75k mortgage (including closing cost) and have a payment of about $560 a month for 30 years. It should be easy to get a little more than $600 in rent to pay mortgage payment, insurance and property tax. If i can make that happen this will be on auto pilot and i can expect to see that original 30k growing with property rates going up, rentals going up, mortgage payment remaining the same and increasing equity on the house every month.

If this works out fine for 6 months to 1 year, i will just try to a build a portfolio of 5 to 10 small houses (below 200k) and invest 20 to 30% in each house.

Does that sounds like a good plan? Any suggestion is highly appreciated.