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Joe, can you give me a ballpark figure of what you might be paying?

Also, something makes me think that a even a small firm will be wary of giving you their name to use. If you were to purchase or sell a property as an agent, you would be under their name... "XYZ Realty".... Aren't there some liabilities attached to them if something went wrong?

Joe... I too am thinking of getting my license, but some questions came up when I read your post. When you say access to MLS and "without bothering another agent", can you do these two things without actually working for a firm?

I would be getting my license simply for the education as well as add to my resume. I would love to be able to get MLS access and physical access to MLS properties on my own. Is this possible without being employed by a local firm?

I appreciate everyone's feedback on my dilemma. With that said, Nick I don't necessarily agree with you either. Many people who work for someone else become successful every day. My situation isn't whether I want to or do not want to work for someone else. The economy and lack of jobs in the real estate market is what has brought me to this thought process. I feel that if I were to build up a portfolio, that in 3-4 years I would have the option to get a full time job with a firm, or stay put.

Let me explain my situation before asking my question. I am 22 years old, a senior in college and about to graduate in May. Business major. I caught the REI bug early on. I bought my first investment property in mid-2006. Said property is 2 blocks from the university in North Carolina that I attend. I lived in the house for 1 year, while renting it out the other 1.5-2 years. I love the property and it has been a great learning tool as well as cash cow. I do not plan on selling this property for quite some time.

I had an internship this past summer with a large commercial real estate firm. I learned quite a bit and still have contacts there. I have a great understanding and love for the commercial industry, but I wouldn't say I'm passionate. I wake up every morning having a passion for residential property, with a concentration on hold/rent strategy. I search the local North Carolina and Baltimore MLS daily.

I have had some "informational interviews" at a few commercial firms in the Baltimore area (where I am from) in the past few months. I have gotten some great feedback, but everyone tells me that there is NO way they can higher a young person like myself in this economy. I have been wrestling with this for about 2 months and can't figure out what I should do.

Should I continue to search and search for a job in commercial real estate? Is anyone going to higher me right now even with my experience and drive? Or should I do what I am passionate about, and expand my current LLC business and continue to buy up single family rental properties? Starting capital isn't too much of a worry... I've got quite a bit tied up in the current property.

Originally posted by Julian F.:

one deal we were looking at (3 yr old house, 4br/2ba, 1500sq/ft), if they accepted the offer of $55k (asking $67k) was renting for $1250.

I know this is a little off-topic, but I am still blown away every time I see people quote a deal such as this. How in the hell is a $55k house renting for $1250? It would seem to me in a market like that, that everyone would try their hardest to be homeowners. It would seem to me that the renter base would be low at a rate such as that.

Deals in Baltimore City I'm seeing are more like $160k investment will generally fetch a rent around $1300-1500 a month. Depends on neighborhood.

And an example from the lower end.... a $75k house typically fetches a $600 rent.

I own a 4bd 2ba property in North Carolina 2 blocks from a university. The home is not located in the "party zone" and is in more of a residential family setting. I target females as my tenants. Currently (since June) have 4 girls in the house with zero problems. You've got to rent to girls.

I believe this property to be a fantastic investment as there is a constant need for housing every new school year. Even if I owned this property for another 10 years I don't foresee ever being stuck without tenants. Lastly, I fetch a 10% Cap rate on the house, which I am very happy about.

The market for SFH's within 4-5 blocks of campus is incredibly competitive. I believe that the only reason I was able to fetch up this house, after being on the market for 2 weeks, was because it had a gigantic in-ground pool in the backyard. Apparently other local investors had looked at the property and ran away because of the pool. I was up for the challenge of filling it in. Cost me about $4000 to have it professionally filled in. Done and done.

I am lucky in that my father lent me the money to purchase my first rental property. I will pay him back his initial investment upon the sale of the property, and I will keep the accumulated rental income. I am very eager to dive in and start picking up more properties, but the uncertainty of my future in one year (graduating) makes it too risky to start accumulating more RE. I am going to need a job, and I will have to take what I can get. No idea where I will be living, but am leaning more towards trying to move back to my home town of Baltimore. We'll see about that though.

Another hurdle I see is once I do obtain my first job (hopefully in commercial real estate), trying to balance my job with a REI business may not be feasible. The way I look at it now, starting out my first career I will not have time to be dealing with rental properties.

Ah, I didn't read that correctly. My fault. Thought it read $1 and bank put down $3, with a total of $4. But I see now.

Still doesn't change the fact that this commercial loan on $17mil is pretty commonly achieved by seasoned investors.

Just like what MikeOH said, it is very possible that he was able to get a $17mil commercial loan with 25% down. But don't expect a small time business or beginning investor to achieve that loan.

Sniper,

I am from Baltimore and am very interested in the investor market around here. Don't currently own a property in Baltimore, only one in NC, but will most likely start my investing in the Baltimore area soon. Can you briefly tell me about the two properties in Baltimore you worked with? I'm assuming rowhomes? Also, where do you find most of your wholesale deals?