All Forum Posts by: Babu Ramadoss

Hi

    I am currently working with a real estate investment firm who buy properties, fix them and sell them and manage them for their buyers. I see that from they mark up around 25% over the sale price + cost to fix the property. For example, if they purchase a property for 90K and spend around 40K on fixing things and then mark it to sell for 165K. I thought that was a huge margin but their listings are selling quickly. Is that a common % of mark ups for such properties that are flipped for sale by these investment firms? I feel like I am paying more price than the real estate value in that area. Is it still a wise passive investment? I am more interested in hearing from investors than agents on this topic.

@Buyan Thyagarajan : FYI

Thanks @Mike Dymski. I agree with your suggestion.

"Option 2: Invest those funds and earn ~15+%"- The one thing I am trying hard  to understand is how do i put the 300-500$ per month difference into investment again? I have to accrue them for atleast 5 years to make a substantial down payment investment. Am i missing something?

@David M. Ward Thanks for such a detailed analysis. it really helped. As @Kyle J. mentioned it increases DTI ratio during that period but if you are confident about your borrowing capacity, i guess it makes sense to go for short-term capacity. As everyone mentioned here, it is specific to individuals risk portfolio and investment goals. I will have to assess where i stand and make that call. My current investments are on longer mortgage terms.

Thanks @Rc Morris

Thanks @Rc Morris. It looks like MyRentSource does not sell properties but Excalibur sell and manage them. Is that correct? How long have you known Excalibur? Any feedback on Excalibur?

@Greg Scott : can you explain please? I am not sure I follow. I am a newbie. So excuse my ignorance. 

Hi

    Can someone point me to some reliable property management companies in Georgia ? I am looking to buy and have them manage the properties? 

Hi

I understand that people advice higher Cash ROIs to evaluate a rental (investment) property so that you will have cashflow. However, I am wondering why is it not a good option to go for short-term loan so that you can close the mortgage soon and have the full rental value as your monthly income. In 15 years from now, wouldnt it help to have the full rental value available to pocket so that I can retire and live on these rental incomes? it will require a couple more hundred dollars a month from my pocket for the next 10 years but it could help for my retirement plans. Agree?

I am buying a property in Houston. I would like to know if there is a good Home Inspector in that area?