New member from across the pond

[Daniel Rytz]

Hello everyone!

My name is Daniel, I'm half Latino half Swiss, I'm a systems architect and I live in Ulm, Germany. 

I've been looking to start investing in rentals for some time now, but I'm scared of jumping in cash flow negative investments in the current economy for my first rental. I would consider it if the growth was a little better but, for what I have seen, real estate doesn't see that much grow over here. It barely keeps up with inflation. I know the 1% rule doesn't apply in the US most times anymore, but there are many areas where you still see and expect decent growth. 

I have a partner in Huntsville, AL and we are looking to start a company together to invest in rentals that I fund and he manages in the US. We plan to look around, get to know the market, make some contacts (agents and such) and start with our first rental in about 1 year from now. 

As we are still in the very early phases, we would welcome any feedback or and hints/tips.  

[Henry Clark]

If you’re in Europe I would be looking there.  For both cashflow and appreciation.  And less competition.  Think your risk reward levels are far better there.

I’m going to generalize.  Recognize the European market is very country and city specific.  Would be looking at Italy and Croatia.   Not that there aren’t better specific cities.   

My brother is in Livorno, Italy.  He is negotiating on two houses at the same time.  Going to settle on a 25 acre lot with a 2 year old build.  View of ocean.  6 minutes to ocean.  Approximately 15 minutes driving to 3 different towns.  Near Livorno, Lucca, Pisa and Florence.  Listed at $525euros.  Negotiated to $385euros including all furniture and tractor.  Financing will be 30% down and 4.4% interest for 25 year amort.  Has a separate downstairs quarter and kitchen with separate entrance which he will rent out during the tourist season.  

The other house was negotiated down about the same.  

I would go after great STR locations in short driving distance of tourist areas.

We have a son based in Sicily thus I have looked around there Catania and Taromino.  Lots of properties for sale.  Surprised by the high listing prices but we didn’t go into negotiation. We did go with a realtor and look at older properties.  I would only do properties with superficial upgrades so your true cost is known.  No $1 houses.  These aren’t in tourist areas.