All Forum Posts by: Charles Conroy

I'm not sure about the borrowing? What is the percentage rate of payback within the 5 years? I did this and it was about 2.75% but it went to me. I pulled 22k several years ago to buy a piece of vacant land I'm in the market to sell now. I should be able to double it as I bought it on a foreclosure and low-balled the bank by 10k. And that is if the local market holds out. So in my case it should work out, I'm not sure what that 22k would have made me in the market, so I'm not sure if it was worth it just yet. We will see after the sale. Everything is a risk. HOWEVER. I personally would not do that again I don't think although it is tempting. Pulling out and getting .70 on the dollar doesn't seem worth it. Another thing to consider is; Does your company do any matching? If they do I would just lower my contribution to that percentage then use the difference for RE. That is what I just did, and I think it might be a good move. Everything is risky and always hindsight 20/20 moves. Especially for us folks who aren't in a great network like the pros are. 

I've been tossing around the idea of a tsp loan for a rental. All depends on the cash flow and if the ROI is over the monthly payment (to yourself) and the 2.125% plus whatever loss factored in that, that money would have made for you if kept it parked. I'm thinking forget it, too much variable. I'd find other ways to raise cash for another property outside of a loan from yourself.

Haven't bought anything yet. I have owned single family rentals in the past. I thought condo market was better in some places but I'm seeing not at this point. Thank you to everyone for your input. 

 

Thank you both for your replies and encouragement, yes 12% is high I agree. I have factored all costs into that for a real honest view of cash flow. I don't want to buy a property without at least a solid $250 monthly cash flow.
To Taylor, will you elaborate a little on Turnkey properties? I've contacted JWB but I don't know what's in it for them. They claim a $200+ cash flow but I don't see where they make out? Management I guess, but why not just keep the properties themselves? And "Flexible in approach"?? like buying foreclosure?

Thank you both for your replies and encouragement, yes 12% is high I agree. I have factored all costs into that for a real honest view of cash flow. I don't want to buy a property without at least a solid $250 monthly cash flow. 
To Taylor, will you elaborate a little on Turnkey properties? I've contacted JWB but I don't know what's in it for them. They claim a $200+ cash flow but I don't see where they make out? Management I guess, but why not just keep the properties themselves? And "Flexible in approach"?? like buying foreclosure? 

Noted. And thanks for the insight. What should I be looking for in a typical monthly ROI? I'm not even sure what -should- be average. Is it a matter of making low ball offers and hoping someone will bite? Buying foreclosures?

Hello to anyone, I've been a landlord to my homes before but never looked into real estate investing beyond until the last several months. I'm looking for real honest answers to these "calculating ROI" calculators.
I'm skeptical I can reach the 100-250 per unit ROI I have as a goal. 
-What is my reality for say a 95k condo @ 20% down, $200 HOA, 12% management fees. I find about a $50-$60 ROI/month when my realtor is saying it should be closer to $150. But I'm not buying it in punching the numbers.

I'm starting to get cold feet about pulling the trigger this type of investing. I see the possibilities in the numbers if all the factors are correct. I find it difficult to attain the purchase prices needed for that much cash flow.

Any insight in this new world be greatly appreciated. 

Cheers. 

Hello to anyone, I've been a landlord to my homes before but never looked into real estate investing beyond until the last several months. I'm looking for real honest answers to these "calculating ROI" calculators.
I'm skeptical I can reach the 100-250 per unit ROI I have as a goal. 
-What is my reality for say a 95k condo @ 20% down, $200 HOA, 12% management fees. I find about a $50-$60 ROI/month when my realtor is saying it should be closer to $150. But I'm not buying it in punching the numbers.

I'm starting to get cold feet about pulling the trigger this type of investing. I see the possibilities in the numbers if all the factors are correct. I find it difficult to attain the purchase prices needed for that much cash flow.

Any insight in this new world be greatly appreciated. 

Cheers.