All Forum Posts by: David Jay

wow. I have to admit there are way to many posts to read on this topic. What you are looking for is a safe 30% return. That just doesn't happen.  

@Gina Dovel  congratulations on thinking big. Remember, if it sounds to good to be true it probably is. Yes, there are tons of people that have grown fortunes with well less than 150k. But that occurred in 2 ways. Taking large risk or an entrepreneurial spirit that truly fueled either a breakthrough idea or at least what others thought was a breakthrough idea (remember petfood.com)). It just does not happen with passive investments. 

@Joe Villeneuve  I have to admit I did not read all your posts. There were too many. But I certainly read your first where you implied a 30% return was easily achieved in the right market. If this is true why are you wasting your time making all these posts. There are at least a dozen hedge funds that would love to sign you up. As we all know those hedge fund guys jet between their trophy properties in Manhattan and Aspen. 

wow. I have to admit there are way to many posts to read on this topic. What you are looking for is a safe 30% return. That just doesn't happen.  

@Gina Dovel  congratulations on thinking big. Remember, if it sounds to good to be true it probably is. Yes, there are tons of people that have grown fortunes with well less than 150k. But that occurred in 2 ways. Taking large risk or an entrepreneurial spirit that truly fueled either a breakthrough idea or at least what others thought was a breakthrough idea (remember petfood.com)). It just does not happen with passive investments. 

@Joe Villeneuve  I have to admit I did not read all your posts. There were too many. But I certainly read your first where you implied a 30% return was easily achieved in the right market. If this is true why are you wasting your time making all these posts. There are at least a dozen hedge funds that would love to sign you up. As we all know those hedge fund guys jet between their trophy properties in Manhattan and Aspen. 

A friend just remarked to me that a friend of ours had just gone out and bought a new car without telling his wife. Just drove it home and parked it in the garage. I would never do that. But a house, no problem. 

@Joe Villeneuve Vacancy, maintenance,etc...are all projections not fixed costs. $169/year is well below 1% of the yearly rent. You could probably be $169 positive just as easily. If $169 a year will break you than you need to be saving and not investing at all. Rather I think you need to consider the Principal pay down which can add $2000 year 1. At a 3.5% down this is ~20% on your invested cash, not too shabby. 

@Jeff S. 

I am surprised in a city the size of Portland you would have trouble finding a reasonable property manager. I think many PMs prefer SFR to apartments since if they are billing a percent of rent they make more per month often with better tenants. A PM will usually be able to cover the maintenance at a reasonable cost due to volume. I suspect if you network and look further you can find a PM that meets your needs.

@Kay H. 

I'm not sure this is such a bad deal. If I calculate it correctly your monthly cash flow is $2100 and your nut is $1550 (piti) That leaves $ 550 month for repairs, vacancy. You are projecting only $169 year in negative cash flow which is essentially a break even. You will probably be paying down principal year 1 of $2000 and that amount will grow yearly. While I know a lot of people think appreciation is gambling I would disagree. Those same folks probably also consider the stock market gambling but the fact is it is investing. You cannot just count on appreciation but if you know your market and economics of your area and you make a reasonable assumption eg 3% year you have a reasonable shot. That does not mean you will appreciate every year but the odds are on a long holding period you will. Next you need to factor in your own circumstance. Do you have a stable job or skill set that you no you are not at risk for job loss. Do you have an emergency fund to cover six months of living expenses and 3-6 months of PITI. If you are financially fit and stable this could make sense as a long term hold. If on the other hand you do not have reserves and stable income the risks increase.

What I like and require is parents with great income and great credit to consign the lease. I also let them know that I am not renting rooms I am renting a house and each co signer was responsible for the lease. My property manager who is very experienced did not like student rentals, felt the students should qualify on their own, and had bad experiences with this. I told him I could care less about the students income what I want are the parents responsible. Also if you take the time and expense to make your rentals nicer, safer, and priced accordingly you will get parents that care and might even snag a professor. 

I would go with a taupe (a little lighter and warmer) but would make sure the color is picked up by the stone.  A cream for the window trim and porch railings.  Lose the shutters.  Keep the trim on the roof line darker to match the roof itself. A splash of color can often work well on the front door.   Post some pics when done whatever colors you pick.