All Forum Posts by: Chinmay J.

Im biased towards DC. Highest incomes in the country.

What are some of the best cash flowing states to invest in, and why? What about worst, and why?

Brian:

It seems strange that your monthly payment would come down so much, so I'm going to have to make some educated guesses. I'm presuming you had a 15 year mortgage and were likely paying PMI. So, I suspect the $1700 number means you refi to a 30-year fixed rate. I'm also going to assume for now that your $1700 is PITI so includes taxes and insurance.

Adding an 8% factor for vacancy, about $200/mo for long-term repairs, plus more for property management, your cash flow would be about $150-200/mo.  I would say this is an OK, not great return on your equity.  Given you want to hold the property, that may not be the best purely financial decision but there are other factors in play

A word of warning, it is often very hard for people to rent out their personal residence.  The tenants will never care for it the way you want them too.  It will be doubly hard for you if you intend to move back and they have damaged or modified the property in a way you do not like.  It will drive you crazy but you need to keep your cool.  Be prepared for that.

Another factor you will need to consider is taxes.  If you sell the property now, you will likely not have to pay any capital gains.   On the other hand, if you decide to sell it 3 or 4 years from now after renting it, your situation will be very different.

So my wife and I live in Northern Virginia (NOVA), and we are looking at moving out of the area in the near future. Due to the nature of our professions, we will very likely be back sometime in the future, and the way houses tend to appreciate in this area, it seems like a mistake to sell. We're committed to holding onto the house, so we'd like to rent it out after we move. The problem is that rental estimates show that we could expect to get $2400 a month for our place, and our monthly expenses on the house come to around $2500. We've been making payments on it for 5 years, and by now I have enough equity in the house to refinance and bring the monthly rate down to $1700. Considering that we're against selling it, it seems like a good move to me to turn the house into a cash-flowing asset by refinancing it rather than putting money into it every month just to hold onto it and build equity.

Is this a good idea in principle, or is there something that I'm not taking into consideration?

I'm currently in the Army and will get out in 2020 and looking to invest.  I'm able to move anywhere in the country and  trying to save up 100k before I get out.

My question is where should I start my investing career.  I understand I should look for projected population growth and businesses in certain cities.  But it seems whenever I google cities with projected growth the housing market there is already a sellers and not looking to change anytime soon. 

( I want to move to the Midwest so Idaho, Colorado, Montana, Utah)

I'm having some trouble getting some traction in what to look for.  Any advice would be appreciated.  Thanks!

I've been dealing with some wholesalers here in Washington. I'm trying to find an apartment building to BRRRR. Nothing the wholesalers have sent me has made much sense. So I decided to strike out on my own and procure deals for myself... one problem. I HATE cold calling. Every time I've ever tried it, I've literally felt sick to my stomach. I don't like it when I get those calls and I feel like no one else does either.

I think my approach is ok. I tried to call, let the owner know I’m an investor who wants to buy something like they have. I just had a couple of questions like, hey, do you have a good property manager? Or hey, what sort of rent are you getting? Still getting blown out of the water. I’m always amazed when I hear that this strategy is working for someone. Most of my numbers seem to be disconnected.

Hmm.  I guess I take a different stance.  Long term tenant is happy and I have fewer appliances for which I am responsible...not a problem to me.  If you're worried about moving damage just let them know that you or whomever would move the old fridge will help move the new fridge in.  There are plenty of things to worry about when it comes to real estate, this isn't one of them.

During a recent inspection (multi year tenant in C+ area), my tenant said they bought a new bigger fridge on sale and would like to move the provided fridge out and move their fridge in.  The fridge provided is a nice stainless steel 20 cu. ft. model.  They bought a 30 cu. ft. model which they have in storage.

Would you let them move the new fridge in knowing they would then take it out when they move?

Would you charge them to move the provided fridge out and back in again after they move?

I am considering telling them no flat out but it is a long term tenant and would be open to some other creative solution.

What would you do?

20+ rooms

Under million purchase

Revenue in 200K+

How to find a motel listing to match my criteria?