All Forum Posts by: Tony Tomasek

Owning for out of state can be a challenge, but rewarding as well. A lot of the advice here is on point. Expenses will be higher if you are investing in SFRs or small multis. Never plan on getting more than 50% of gross rent as income. Management can run 10% and leasing can cost 1 months rent. Maintenance will run 10% at least. Vacancy can be a big factor if your manager is not good a marketing. I have managed to sidestep some of this by buying rehabs at a great deal, fixing them and then lease optioning them. This gets me good tenant-buyers that are in place for 2 years or more and they take care of the property. Good luck and feel free to contact me for advice at any point

Yes!!!...Lets pay for the rest of the world to reduce their emissions. And foot the bill for our own as well.

That way we can all link arms and sing kumbaya as we toil away in the fields of our calorie based economy (that means that food will be in major shortage) in the next 20 years. This is insane.

I confess that I am not the most educated writer on the topic, but we are already not able to compete with the low labor costs of competing nations labor pools due to lower standards of living. Lets heap on regulations so that we cant compete in the near to medium term.

That way our standard of living can move down to equilibrium with the competition and all can compete on an even playing field. They work 12 hour days for 10 cents an hour, and are happy to do so. Anthing less is labelled "lazy". Yes I am in total favor of paying for their factories to pollute the environment less so that they can continue to take jobs away from our economy.

Please forgive the sarcasm, but I am just a bit fed up. I hate enviromental damage and believe we should avoid it, but come on. Unless we ALL do it (globally) and foot the bill for it on our own, this will cause major economic problems.

I am hoping to spark an intelligent discussion on the above topic. Considering the mazsive debt we are taking on as a country, I am concerned that the Real Estate tax advantages hang in the balance when it comes to the day of reckoning.

Anyone else see where that kind of money can come from? Certainly not from the disadvantaged or off the backs of the regular worker. My pessimistic side says that since I am 32 the personal homestead expemption will be done away with for anyone born after 1976, and 1031 tax exchanges will be phased out. But that is probably just paranoia.
What do you all think?

You may have better luck at 40k. This seems to be the lowest that most conventional lenders will finance.

Yes it is possible. You need to start planning now though. See a qualified CPA to make sure you will show the income required on your tax returns. I would also make sure that you are carrying no or extremely little other debt. This will help you have a good debt to income ratio and thus qualify. Good luck and happy saving!!!

As for not making sense to buy all cash, ask Will or anyone else who has leveraged that cash to get great deals from banks that have room to flip for a quick sale after rehab. The best deals go to the cash buyers.

Seller financing is a good way TO PAY MARKET PRICE. In this case you are betting on the turn of the market to make your money. No thanks, I can buy them at .30 to .40 cents on the dollar to your "leverage".

The great thing is that you can secure cash out financing if you have the contacts as well. This does take some time and you need to have a proven track record of sucess though.

I agree with Harrison on Indy cheap homes, good renters. Contractors and Property Managers can be tough on the unwary though so check everyone out thoroughly.

I spend a lot of time in Vegas now, and will say that I may actually purchase a residence for myself there. Renting it? That may prove to be a bit more challenging. I know several people that are having vacancy issues. Not a horrible long term hold area though if you can buy right. (Always comes down to that)

Eddie and Rich- I would love to talk about the opportunities in Texas sometime, I like the strong economy and believe that those fit the bill

Judicious use of financing at this point may be ok. Just be aware that if there is a return of deflation and values sink more, that leverage can work in reverse on your equity. Cash is good, but securing financing to cash out is a challenge. One that I choose to get around by flipping. I cannot tel y9ou how happy I am to not be paying a mortgage on my 1 vacant property right now. Especially as this tis the season to have a vacancy drag on forever,

Look for diversified economies in the midwest. I like Indianapolis,IN but wouldnt say the same for the whole state. This is typical in the midwest. Every economy in the state is not equal.

In my market the MLS listed short sales set the retail market generally. I like REOs better. Of course the competition on some deals pushes me out, but its the nature of the beast. I have yet to see more than one short sale that can touch the deals I get in my area.