All Forum Posts by: Chris Mills

I agree about the bed to bath ratio comment. If that's common for your area you could be ok, but it sounds like you'll be renting to a family so keep their needs in mind. I also don't think the separate garage from the house is a big deal if it's normal in your area. We have both attached and detached in the DC area. I would hold for rental if possible. Sounds like that's the better deal.

I second Jason's comments.  I moved from L&F to Keller Williams Capital Properties a few years ago and never looked back.

I personally avoid condos simply because I find I don't need them.  The condo fee unnecessarily cuts into my cash flow.

Welcome!

Welcome! You're in great company. There was a lot of money being made in in DC tax sales, but Mayor Gray nixed it last year. You'll have to go out of state for that. Best of luck in your endeavors!

@Rhonda C. Sorry for my delayed response.

What I meant is that in real estate you are able to buy $120k worth of property without having to actually spend $120k. You put down your down payment and the bank takes care of the balance. A bank won't give you that deal buying stocks, mutual funds, or most other types of investments. If you indeed have $120k in the bank, instead of buying one property you can buy about 5 at $100k each.

Example:

$175k SFH rents for $2000

I got into it for about $40k, all things considered, and the note is just under $1k, netting about $1k before expenses. If I paid cash for the property I'd make all $2k before expenses. By using leverage, I make a 60% return on my money. Without leverage, I'd make 14% on my money. #nobrainer

Hi Frank, A good Realtor who knows the market intimately will be able to give you a pretty accurate ARV since they know what things are selling for and how fast. They will also be familiar with buyer preferences for the neighborhood. If the Realtor is an investor, all the better.

Leverage is your friend. One of the best things about our business.

1k is 1% of 100k. If anyone has a minimum on a deal, which they usually don't, it would be 1%. So you're fine. I can't recommend this as a standard, but I've closed a deal successfully with a $1.00 EMD.

What neighborhood are we talking? The amount a tenant will ask for varies greatly all over the city. I would start simply offering to cover moving costs. No need to tip your hand unnecessarily.