All Forum Posts by: Alison Michel

Thanks @Derek Carroll . Your comment brought up an interesting 'related discussion' called "what is your motivating factor to continue in REI?" which I will definitely check out. I also appreciate your advice to focus on MY goals -- good to stay on track!

Hi @Sam Craven , @Jerry W. , @Account Closed , @Tim G.

Thanks for your responses. I probably should have put this into more context, and understand your reservations about answering. I was really just curious what the average/realistic income potential is in real estate investing (with the understanding there are many variables). When I chose my current FT job, part of my research was going onto websites like salary.com. For REI, I thought it might be more effective to ask the actual investors. I do apologize for invading privacy; is there another less intrusive way I might get this information?

Thanks again,

Alison

Hi all,

How much did you put in, and how much have you made to date?

Thanks!

@Glenn McCrorey , sounds like a nice steady system. Did you have this lined up when you started investing or was it something that came together after you had a few properties?

@Aaron Montague me too!

Hi all, thanks so much for your insights, and my apologies for the delayed response.

@Glenn McCrorey , what is your current preferred level of cash flow for a property?

@Aaron Montague , I'm going to try to fill in those blanks and see what I come up with. Will post as soon as I can!

Thanks again!

Thanks @Brant Richardson , that's a good point about the foreclosure. One reason I took them into consideration though is that the pics have a (c) MRIS 2014 watermark on them. Does that mean they took them in 2014? Or just that they posted them this year?

@Justin Case , first of all, I can't believe I've finally met someone actually named Justin Case. That's awesome. Secondly, return on capital meaning ROI? I was thinking about that -- if I put in $7k downpayment and say $5k renovation, how long will it take me to start actually profiting? At $300/mo (assuming the best) that's 400 months/33.3 years. Is that sort of what you are referring to?

Also, @Account Closed , I'm waiting to hear from my agent about expenses so I can calculate cap rate with more accurate numbers. Will post as soon as I find out.

Hi all,

Thanks for your responses! Here are the details by my research and math:

3/2 1500sq ft townhome in working class neighborhood with below average income; city-data describes it as primarily folks in 30s-40s; 80% with high school diplomas; 40/60 rental/owner-occupant.

List price: 37k (foreclosure)

Most recent tax assessment was 90k

Pending info on repairs-needed and expenses, but based on pics it looks to be in good shape.

Comp rents based on hotpads and craigslist: $1000/month

20% down = Mortgage of ~$200/mo

50% rule = $300 cash flow

Thanks!

Alison

Just found your blog post @Ali Boone -- http://www.biggerpockets.com/renewsblog/2013/03/30/battle-of-the-cap-rates/ -- very interesting!!

Hi BP,

A friend and I got into a discussion about real estate investment. Neither of us have made our first purchase yet, but are both looking to soon. I told her about an investment potential that would result in $300/month income (assuming my numbers are right). She thought that seemed like too small a return for the trouble. She was also concerned about the neighborhood where the property is located, and thought it was bad for the local economy to be an outside investor rather than encouraging local homeownership. She is looking for a larger property in an area that is more likely to increase its value over time because of its location. I argued that if I'm a fair landlord who maintains the property well, that is good for the neighborhood, and that making $300/month for a property that is managed by a property manager is a good start for my own REI business. What do you think?

Thanks!

Alison