All Forum Posts by: Bruce M.

Wow that is a sweet deal in SC to have 30 days to pay in full with 5% down. In CA and NV, you have to pay 100% of it at the sale when you buy it right there and then. In AZ, you pay 10K down when your bid is accepted, and have only until 5 PM the next business day to pay the balance in full.

Each state has different sets of laws on eviction, but we post a notice right way and also a note with our (my manager's) phone number. Many times the owner comes out as the notice is being posted to their house to talk. We strategically do it when they will more than likely be home (weekend or early evening). So far, more times than not they want to work with us believe it or not. Many times they can be turned into a decent renter too. Cash for keys is also an option if you want them out....it is just easier than going through the legal process. We buy at courthouse steps and many of these properties are already vacant. You may want to start bidding on the vacant ones first. You will obviously do a drive by before bidding so you can tell usually if it is vacant or not.

Michael, I sent you a PM. Yes I included mgmt. and repairs. Homes are newer 1996 and above. 10% is based on comps. I needed to do little to improve the properties I bought. Again, my strategy is based on appreciation too, otherwise I would look more for that 2%. I have different strategies in different markets....I buy in Phoenix based on my opinion that the market will be going up. And it has. I am finding it tougher to find deals in that market this year over last. A lot of money from all over, including foreign, is flooding that market now.

Michael,

I was buying for 55 to 60 and getting around 850-875 a month for rents. Prop taxes were around 800 and insurance was about 600. Mgmt and expenses were around 150 a month. But again I was buying these also banking on appreciation. They have already gone up over 10% in the last year. Now, I can't find these same deals 12 months later very easily in Phoenix.

Every market is so different and has its own sets of issues. I have been a buy/hold/rent investor. For example, I currently own properties in TX (Austin suburbs), FL, AZ and NV. I had been buying it FL, AZ and NV because they have been hit so hard I believe they have no place to go but up. If you look at the replacement costs of these properties, it will only be a matter of time for market dynamics to play out.

I use to own in CA too but sold before the bust and am just now thinking of coming back in. Different markets have different dynamics though, for example, FL has very high insurance costs. I pay 3x the insurance rate in FL from what I pay in NV. NV has the lowest insurance rates of all for me, but investing in Las Vegas has other economic risks. Plus I plan to be buying a new AC unit every 10 yrs probably. TX and FL have very high property taxes (about 3% of property value) where NV and AZ have much more lower property taxes. CA has prop 13 protecting your property taxes from going up much. None of mine are in snow country so I don't have winter problems and related repairs. Interestingly, FL is the only state where their insurance polices don't cover dog bites, who would have thought? Of course tenants never have dogs and always carry renters insurance anyway!!!!!

Obviously I am an out of area landlord and that compounds the problems. I am looking for some new areas/states now. I think there are many variables here to the initial question. For me, I have found my best market so far to be Phoenix for my buy/hold/rent strategy, but I think there are better ones, I have just yet to find them. I was in Phoenix before it boomed and came back in after the bust.

Hi Matt,

Northern California here too....yes the central valley pricing is looking attractive and I agree Tracy is ripe for the picking for buy, hold and rent. It's still is a bedroom community of the Bay Area and Bay Area pricing, although it has gone down, is still out of the reach of many. I also like Oakley and Brentwood too. BART will be going to Oakley in another few years and will make that area attractive in my opinion. I think Mountain House is another area worth looking at.

Hi Demond,

I live in CA but own rentals in Phoenix and have been active in that market in the last year. I bought my first rental in Phoenix in 1994 and have seen that market go up, go down, really go up and really go down the last few years! There are some interesting things going on in your market right now. I am in Phoenix often and will be at the conference in Denver.....would enjoy meeting up with you to talk about the market if you are going.

I just emailed the VP of my out of state bank where some of my properties are and explained what I was looking to do, and she said you want to do what? LOL. I will let you know if it goes anywhere.

Jon, Thanks for the info, good to know. One last question, since I own properties in multiple states, would you go to the area/state where the property is and talk to a local bank there or does it matter?

I live in a large metro area so you are suggesting I look to a local bank based here? Will the commercial dept. loan on single family homes like this? I have tried before at banks and they said the commercial dept. would only look at apartments, etc.