All Forum Posts by: Bob S.

hi Joe - i do not own any properties at this time, and flipping isn't for me (maybe for now, maybe i'll explore this in the future).

what you said you wouldn't do is exactly what i would do; i need to start building a portfolio of rentals so i'd like to invest in one or two condos in the area at this time. my seed money would be my start up money. i'm not sure how to make a profit without it (spend money to make money concept here?)

can you explain what you mean here? what is a "value add" multifamily? and how would you "add value" to it? these are the kinds of newbie things i need to deduce...

thanks!

ok so - i'm a newbie and i only have one other post.

here's a hypothetical - it may or may not match my situation... i just wanted to start a fun topic and get some ideas generated.

say you have 100k cash in your pocket - right now.

what is the first thing you would do if you wanted to invest in rental property(ies)? what would you look for? how many would you buy? would you focus on one specific type? would you try to buy multiple properties in an "up and coming area" - or would you buy one in an established, more "reliable" area? i am using these terms loosely; be creative.

thanks! open to thoughts, concerns, critics, and pessimists!

Thanks so much @Mitch Messer! I have been thinking about other options besides condos and I've been scouring the forums recently learning as much as I can! I was almost thinking my post would go unanswered but thank you so much for starting the ball rolling on this!

I have also been active watching Brandon's starter videos and will share my findings as they come with this or new posts!

Cheers.

First time poster, long time viewer, hi all!

I've been going through Brandon's videos while I search for properties. I also just finished Rich Dad, Poor Dad. I gained a ton of perspective from it - but I'm also taking some parts with a grain of salt. Robert makes it sound easy - but it's not always that way given what you have going on in your life - at least that's my take!

I wanted to know if this was a potentially good deal based on your opinions... please be gentile - I'm just getting into this. FYI - if it helps - I'm based in the Chicagoland area - just about 20 miles outside of the city. I have a decent budget for a down payment for several units and I was thinking of starting with something like the following...

Unit type: Condo (only looking at turnkeys; not going to rehab - much)

Asking price: $182,000 - would offer $160,000

Fair rent price: $1,600/mo

Property taxes: $2203/year; $184/mo

HOA: $223/month

Mortgage (P&I): $635/mo

Landlord insurance (estimated): $20/mo

Optional considerations:

Property management: $160/mo (10% of the rent; I am not going to use property management at first; I will manage it)

Vacancy: $160/mo for as long as it is vacant

Repairs: $80/mo as needed

I obtained the optional numbers above from here:

https://www.biggerpockets.com/renewsblog/2013/01/1...

This comes down to...

Worst case scenario of $138/month given vacancy, property management, and repairs.

Best case scenario of $538/month without any of the optional considerations - so hopefully this is the profit I would be looking at almost every month.

Thoughts?

What am I missing?

Thank you ahead of time!

PS - I am looking to scale up eventually. Once I establish I'm doing the math correctly and I find some good options in the area, I'll probably invest in 2-4 units. I'm also considering SFH but those are extremely difficult to find turnkey and a good price for the math above for optimal net profit.