All Forum Posts by: David Carr

@Stefanie Jensen

I was in a similar situation when I first started. My wife was supportive but not totally on board. So I partnered up with my father (who previously had rentals) and purchased a SFH near my home. Once the rental was rehabbed, tenants were placed and it was creating cash flow - her opinion definitely changed. I think some people (maybe your husband is like this) just want to see if the idea works. My wife is very financially conservative due to her upbringing (constant money issues growing up, etc). Real estate seemed risky to her until she saw it can work and provide very nice income! Now she helps me shop for the next rental property!

Hey @Josh Cohen, some of the information I honestly found on wikipedia regarding the town and population. Jobs, I have used google maps before but I'm sure something out there is more effective. Crime: a site like www.neighborhoodscout.com. 

Holy smokes, 8 dogs? Just imagine collecting $2400 in dog fees plus rent. Maybe you'd make a whole new strategy, haha. But in all seriousness, that's a hard "no".

As for the wedding piece, I found a great deal on my wife's engagement ring, along with the venue and the rest of the wedding. We actually ended up net positive once the wedding gifts came in. Made it very easy to buy our first house.

Personally, I agree with @Account Closed I paid off my student loans early, along with other debts, then started saving towards property. My reason for paying off loan debt early is student loans aren't immune to bankruptcy (just being cautious) and I like having less overhead per month in my expenses. From there I started to branch out towards real estate and other investments. There's nothing wrong with putting yourself in a good strategic position prior to investing heavily.

Dig in, do your homework, get started, prove them wrong.

Here's my question: If they're willing to pay 50% more... why not just move into a larger apartment?

Thanks for the feedback @Stan Lebo, I updated my post.

Hey guys, I've put a few offers out but I was curious about getting some feedback on this one. Trying to pick up a townhouse local to me that will rent out for a decent amount. Rental comps for the property are $1400-1600 as verified by my agent. The townhome is a 3 bd, 2.5 bath, roughly 1600 sqft. Roof was done in 2008, HVAC in 2013, Electric water heater in 2014. Washer/dryer appear to be 5-10 years old. Paint and carpet is a few years old. It is a short sale, the owner has health issues and is looking to get out. The property has been listed on the MLS for 400+ days with little to no serious offers. Comped properties come in around $140-150k in similar condition. I plan to self manage the property.

Asking Price: $130,000

Down Payment: 20%

Closing: $8,000

PMI: $0

HOA: $150 / year

Insurance: $1,000 / year

General Maintenance / CAPEX: $900 / year

Water/Sewer: $1800

Real Estate Taxes: $3,900 / year

Rent: $1500 / month

First offer: $110,000

PF Cap rate - 8.06%

CoC ROI - 17.44%

Cash flow: $523.32

Thoughts?

Thanks @Jamie Friedl and @Colleen F. I will definitely act on that suggestion. I didn't really consider the timing of the increase which is a pretty important factor!