All Forum Posts by: Aaron Hunt

$10k is enough to get started. That’s about how much I put into my first 5%down owner-occupied property. Which then became my first rental a year later...

I have a very similar situation to yours, @Joe Edwards-Hoff. Just slightly different in terms of numbers.

We have one rental, and we are living in our current home which will become a rental soon. I have property managers in place for when we move out. I've realized after being a landlord for this rental, I definitely don't want to manage 20+ SFRs/condos, etc. I am trying to figure out if I should sell the rental for better opportunities.

Ironically, I am also evaluating a 10 unit as my first multi-family. (Don't worry, not the same building!)

Regarding financing, my first was to discuss with the seller to consider seller financing at first, but it sounds like that is out in your case.

Beyond that, and I guess as a first step for you, I would just start calling the local banks/credit unions to see what they can do in your situation. If you have an established relationship they may be willing to work with you. You seem to be in good shape financially.

Maybe you can snag a 85/15/5 or something of that sort?

Why credit score only in 600s though?

Well, I guess I won't be renting to lawyers or cops. That's rough cause they typically both get paiiiiiid.

One of my tenants is a recognizable politician. Definitely had concerns about that at first.

Originally posted by @Frank Adams:

I always took the number and would warn them that any uncollected money for damages or past due rent would be reported to the IRS as "forgiven debt". I'd point out that I wouldn't take the time or trouble to get a WORTHLESS judgement against them. I'd just report the forgiven debt to the IRS, because unlike me the never sleep and they never forget. I always collected all my money from anyone who received that speech.

Whaaaaaat. Let the Up Votes rain down on this man!

Always appreciate a success story! Enjoy the $$$ and get on to that next one!

Glad someone brought this topic up as I am seeing it occur more and more.

In my case, to make the same amount of money on our rental, as the recent 1.5 years worth of appreciation, my current rental cash-flow would take a little over 83 years...of being a landlord. Stuck in a no-to-low-cash flow investment because of favorable terms in a rapidly appreciating market - that could literally crash at any moment. Ugh.

Does the real estate cycle ever really balance this out in certain high-demand markets? The three places I've lived (DC, NYC and Vegas) don't seem to make this happened. DC and NYC are somewhat recession/crash-resilient. When the markets tank there, there's just turnover but really not a significant crash. The properties we bought in short-sale were only 33% less than what they recovered to now (and it's taken 8 years to get here!). Vegas is obviously a different world/ballpark (those who bought at the bottom are up 100%+).

However, none of these places are near the 1% rule on any property in these areas (if you were to buy today). I'm seeing 2 bedroom new build condos in the suburbs of DC at $650k + $900/month in condo fees, sitting on the rental market at $3,000/month. That's ridiculous! These are in new communities with literally every restaraunt/retail store you can imagine right downstairs. How does a relatively newer solo-investor compete with these types of owners/investors who really don't seem to care what they make - and are just plopping down cash all over the place?

So my question is what factors significantly drive up rental prices? Is there a trigger or sign that one should be keeping an eye out for? Is it no land to build new homes, rising interest rates making it difficult to buy or build, some new attraction/business that pops up nearby? This is something I've really struggled to understand.

With the average annual household income still sitting around $55k, and prices of new builds/old homes shooting up to where anything over $350k is no longer feasible for these households, does that mean the rental market is essentially "capped"?

You mentioned your fiancé, can you also use his credit/income to qualify? Seems obvious, but figured I’d ask.

This is also the case in Las Vegas right now. A lot of cash buyers coming in and parking here at crazy valuations. They don’t seem to care what they get in terms or returns - just that they get something. Example a unit sold for $300k cash, and next day was on rental market for $1700, within the week it had someone moving in there, and this is arguably the nicest area in Vegas. Rents have literally not moved. I rented my condo out last year in July, and to date it’s still the highest $/sqft in the entire community of about 300 homes. I keep waiting for rents to go up but there’s homes 300-400sqft larger going for the same.

Why would I pay off car debt? Rates are like 2% for those who got in last year and before. Would rather use that money for the next digs.