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Bought a brand new 3br, 2.75ba house for $197,500. I'm going to rent it at $1300/mo to start [already have tenants moving in the day after I close on 06/08.] Does everyone typically 'build in' rate increases into the lease? I'm working on all my rental docs, and wondering if I need to include a standard increase of x%/yr, or if tenants are averse to this kind of arrangement.

Thanks,

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Originally posted by "Rehab702":

The deal looks very favorable on paper. The question is; how sure are you about the 20k for repairs? The two areas where most people blow it is with how much repairs will cost and how long it will take.

$20k is definitely just a WAG at this point. I'm going to the property again tomorrow to take inventory of everything that needs to be fixed and get a better idea of a 'real' number.

Thanks for the input.

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Ahh - thanks. So, I'm considering my first deal. I can get the property for $400k, put in 20k, and sell for $525-550k. These are all conservative numbers [except the $400k, which is dead-on].

Using the 70% - repairs rule, this does not seem to be a favorable deal. Any comments?

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Originally posted by "Rehab702":

Great post Minna. The 70% rule is there for a reason, it comes from experience. The only way I will deviate from that is when I’m buying for cash and even then I’ll only bend it a little. I’ve had some great projects, a bunch of really good ones and a couple that were only borderline profitable but never a loser. I learned early on to walk away if it wasn’t right.

Ok, since I'm a newb, I don't mind asking. What exactly is the 70% rule we're referring to? :)

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Originally posted by "biggerpo":

They are all overpaid anyway, so ask away. You deserve your money's worth! Feel free to use this site to ask any and all questions you've got as well. Like I always say, there are no stupid questions!

Welcome to BiggerPockets, BTW!

Much appreciated, Joshua! I'm soaking up as much as I can first. Then the barrage of questions will follow :lol:

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Thanks for the welcome[s], everyone. Aleady learning lots on this site!

Plus, I've been bothering the crap out of my realtor and mortgage broker with questions. I'm sure they're going to be sick of me by the time I actually buy a house [but, they'll make some money off of me in the long term :D ]

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Originally posted by "lenderles":

Alright BlackCobra,

Welcome to the forum. Where(city,state) are you expecting to spend
all that cash. Do you have a certain cap on how much you will spend when you decide to pull the investment trigger. 8)

:zzz:

Pacific Northwest. My goal is to buy a ~$200k property every 3 months or so.

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I just sold my retail business. Now that I have some cash to invest, I'm looking at real estate - specifically single family homes. Not so much the flipping [unless I were to find a real obvious one], but more of a rental model. Although I've got money burning a hole in my pocket, I'm still in the learning phase, and will wait to pull the trigger on my first deal until I know a *little* more than I do now! :pup:

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All Forum Posts by: X X

X X has started 3 posts and replied 28 times.

Post: Just bought my first property - question about raising rents

Post: A little advice from someone who's been there

Post: A little advice from someone who's been there

Post: A little advice from someone who's been there

Post: Another Newb!!! Got some dough - want to learn the game.

Post: Another Newb!!! Got some dough - want to learn the game.

Post: Another Newb!!! Got some dough - want to learn the game.

Post: Another Newb!!! Got some dough - want to learn the game.