All Forum Posts by: Josh Keys

I use a trulia, city-data and wikipedia.

I know this is old, but I thought it was worth responding to. HSBC and Citi are the only 2 that spring to mind.

A room only in a poorer part of Sydney (Australia).

Welcome to BP John.

If you are serious about getting into property investing, spend plenty of time on this site. Read the articles, blogs and posts on here. Understand the 50% (of expenses) rule as a start. Some swear by these and others don’t but it’s a great starting point.

As far as books go – Highly recommend Real Estate Investing for Dummies by Tyson. Its one of the best out there. I recently read Millionaire Real Estate investor. A bit of a Rich Dad Poor dad style (in that self help kinda way) but still quiet good. Search this site for investing books.

Don’t know too much about Rochester sorry. Unsure whether the cause of low prices are that it is in the rust belt, declining population or crime etc. Suggest checking on city-data.com for more info on the region.

Having Section 8 tenants doesnt automatically mean it will get trashed. You just need a good PM.

Good luck.

Craigslist has some good deals.

Originally posted by P NW:

So, what I'm hearing you say is that you are incapable of doing your own research?

What part of his post said that? Isnt this a forum where you can ask questions like that??

Just updating this thread, I received the below from a NY attorney re setting up an LLC in NY state. You can see the cost is a rather hefty $1100-$1200. Ouch. I might just ensure I have adequate liability cover and run my properties through my personal return.

“I would recommend a Limited Liability Company instead of a Corporation. I believe this would give the most flexibility and be most beneficial for tax purposes.
In regard to establishing the Limited Liability Company we would need to know the following information:

1. The name that you would choose for the Limited Liability Company. Usually we recommend to people that they choose two or three possible names so that we can do a name search to make sure of the availability of the name. In choosing the names put them in the order of priority that you would prefer to have the name.
2. In regard to expenses involved in setting up a Limited Liability Company if it is a New York Limited Liability Company you can anticipate approximately Four Hundred Fifty Dollars ($450.00) in filing fees for the filing service and the New York State Department of State; approximately Two Hundred Fifty Dollars ($250.00) in publication expenses since the Notice of Formation needs to be published in two (2) local newspapers once a week for six (6) consecutive weeks; approximately Two Hundred Dollars ($200.00) for the filing of the Affidavits of Publication with a New York State Department of State providing proof that the publication has been completed; and approximately Three Hundred Dollars ($300.00) to Three Hundred Fifty Dollars ($350.00) for our attorney’s fees.

Also, if you are establishing a New York Limited Liability Company we would have to have a New York address for the principal place of business or location in New York State.â€

Agre with Mitch here. You are going to get more bang for your buck at the lower range.

Well done to both of you.

This is a great story about how good BP is!

Originally posted by Brandon Turner:

I like to think like this: If my standard is to pull off 100 per door in cash flow with property management in place, I would need to get 30 units to reach $3000 Per month.

So you could use your $100,000 to put down 20% on a $500,000 property. But is it possible to buy 30 units for 500,000? Maybe, but probably not in a good or even fair condition. So maybe if you bought an amazing deal, hired the right contractors and great property management, you might be able to pull it off.

$10-$20k per unit is possible, even common, in Ohio or upstate NY. Im sure there are similar options elsewhere too. Not the best areas, but not slumlording either.

Agree that leveraging your 100k is one good way to do it, if you can stomach the risk. ie if you can acquire 500k worth of property that exceeds the 2% rule (say mthly rent = 2.5% of prop price), theres 150k gross income per year.

Taking 50% for expenses and vacancies, leaves you with 75k.

Your P&I on a 400k mortgage would be about 30k per year (at 6% over 30yrs).

This leaves you with about 45k per year. After tax, thats about 30k - or 2.5k per mth.

Not sure if I am overstating how much you could borrow for commercial (ie 500k with 20% down?) but this just shows you an example of how leverage could make it work.