All Forum Posts by: Augustin G.

Yes, sometimes tenants in C properties complain less because they expect less. But in the end for this property get something you feel safe in above all else. The last thing you want is a scary tenant pounding on your door while your wife is home alone and you are at work.

Years ago I had a property that had four units on it. I lived in one of them and had some pretty sketchy tenants in the others. What happened was the tenants wound up inviting ex-cons as they got out of prison (San Quintin) into the units to live with them.

I wound up evicting everyone and starting from scratch. But it was pretty scary knowing that some of these people did not have a lot to lose and they could easily come down to my door and cause a great deal of harm to me persoanlly or property wise. It took a few months to get them all out, but I was pretty much on edge those couple months and kept a baseball bat next to my door. In hindsight I wish I had a gun.

I'm not saying that you will be in that situation but imagine if it does turn out to be that way how you and your wife might feel. I did not rent to the ex-cons. But the sketchy tenants brought them in without even asking me.

Kevin - I really appreciate you sharing that. Trust me, by no means will I put my family in danger. No amount of money is worth that. Thanks so much for your input.

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Originally posted by Benjie DeVera:

@Augustin G. Generally, the less desirable the neighborhood is, the better the return. I'm opting for a C/C- neighborhood because the B/B- neighborhoods from what I've seen in my area are so much more expensive. Sure, I can buy a property in a B neighborhood, but the numbers aren't there. So this is something you would personally decide.
When I think about turnover, a tenant from a "C" neighborhood probably has the same risk of a tenant in a "B" neighborhood. Someone in a B neighborhood might be more complain-ful than someone from a C. I would put them on same category as turnover because someone from the B place might think he/she is entitled more on what he pays for. Again, these are just general comments. Hope this help. Happy hunting!

Very interesting perspective you have there @Benjie DeVera. That actually makes a lot of sense... I could see C/C- tenants complaining a lot less and turnovers being very similar. Hopefully I can find a happy medium neighborhood, between B/C preferably. The hunt continues. Thanks for the input!

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Originally posted by Susan Gillespie:

Hi Augustin, if you're planning to buy and hold for a longer term, I would think longer term. Meaning: how will the neighborhood or location do over time? Is it generally holding its value? Is it mostly residential or rental? What is the neighborhood's demographic, who is living and renting there, how is the local economy?

I have only invested in stable neighborhoods and have been happy with the result. I go for quality over quantity. My most successful formula is to buy discounted/distressed properties and add value through improvements. I wouldn't want to make improvements in a neighborhood that I don't consider "improvable."

You'll have a huge advantage as an owner-occupant with finance options, taxes and possibly first time buyer incentives. Watch for positive cash flow no matter where or when you invest.

Best of luck with your search. I wish I had bought an income property when I was starting out.

I surely have a lot to consider for this purchase. I would agree that quality is more important than quantity. Ideally, I would love to find a discounted/distressed property in a decent neighborhood, however it seems that is easier said then done. But I'll keep looking! Thanks for the advice.

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@Kevin Auyong Sorry for being so broad, I just don't really have any numbers to provide as of yet. I guess it was meant to be general and honestly your response was exactly what I was looking for, as if I already knew the answer to my own question, I just needed to hear it from someone else. I would most definitely worry sick if my wife were home alone and I lived in a not so good area. Better tenants, higher rents and lower turnover seem to make buying in a better area well worth it and most importantly the piece of mind that my family will be safer. Thanks Kevin!

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Just hoping for some input on this. I plan on making my first purchase within 12-18 months, going multi family route with a FHA loan, with my fiancee and I occupying one of the units. My question is, would it be smarter to go for a cheaper home (lower mortgage) in a neighborhood which would bring in lower rents and most likely a lower quality tenant... or would it be wiser to spend a little more in a nicer neighborhood where I can attract a higher quality tenant with higher rents? In the end I suppose the quality of the neighborhood is irrelevant as to if it's a "good" deal or not, this would be based on the numbers.

Anyone with experience going this route for their first buy who may have had the same thought process?

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@Jeff Greenberg Sounds a little advanced however very interesting, I will be sure to read up about this. Thanks!

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Originally posted by Tom Sylvester:

@Augustin G. - Welcome to the site! I also went to Oswego (but for Computer Science). Awesome school as long as you don't mind snow.
Sounds like you are off to a great start. I would also recommend a duplex or multi-family to start. That was my initial plan as well but we ended up purchasing a single family, which set my investing back a little bit.

I would recommend reading Rich Dad, Poor Dad first. So much of life is all about mindset. The reason just about everyone mentions that book (myself included) is because it really changes your mindset.

@Tom Sylvester

Thanks for the welcome! Nice to see fellow Oswego alumni on the boards. I've never seen so much snow in my life while attending, I clearly recall a stop sign being engulfed by a snowbank. Still had a blast though!

I'm definitely going with a duplex or better, I plan on attending as many open houses as I can until I feel my cash reserves are at a point where i'd be willing to pull the trigger.

And it looks like Rich Dad, Poor Dad by unanimous decision, will be my first read.

Seeya around!

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Originally posted by John Moore:

Welcome to the BP family and Happy Holidays. Suggest you listen to the podcasts, select the ones you feel are the most interesting. I would suggest you read, Think and Grow Rich. Again welcome aboard.

John, thanks for the advice. I plan on listening to all the podcasts, averaging about 3 a week now. I'll have to look into that read, thanks!

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@Brandon Turner Thanks for the welcome! I'll be sure to keep the questions coming and hopefully i'll be able to answer some as well. Just subscribed to BP's YouTube channel... excellent content. Keep it coming!

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@Joe Fairless Without a doubt it's the way to go. Someone else paying my mortgage sounds good to me! I will take you up on your advice to read rich dad poor dad first, was leaning that way anyways! See you around.

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All Forum Posts by: Augustin G.

Augustin G. has started 4 posts and replied 27 times.

Post: Better deal or better neighborhood? First buy owner occupy multi

Post: Better deal or better neighborhood? First buy owner occupy multi

Post: Better deal or better neighborhood? First buy owner occupy multi

Post: Better deal or better neighborhood? First buy owner occupy multi

Post: Better deal or better neighborhood? First buy owner occupy multi

Post: Ice breaker - Fresh meat from upstate NY!

Post: Ice breaker - Fresh meat from upstate NY!

Post: Ice breaker - Fresh meat from upstate NY!

Post: Ice breaker - Fresh meat from upstate NY!

Post: Ice breaker - Fresh meat from upstate NY!