All Forum Posts by: Dustin T

thanks for the feedback guys! I have read the 50/2 rules a number of times and just went through and reacquainted myself.

I realize the net cash flow won't be $300/month. However, as I crunch numbers I still appears to have a positive flow.

The comparrison I was making, is to those people who are constantly 'investing' in real estate where the RENTS aren't even making the mortgage. Much less the utilities, maintenance, etc.

The majority of the homes in my area sell for over $200k. Typically, a $200k home will rent for around $1,000 if you lucky around here.

I said in my original post that the property 'would' rent for $650 per month. That's an understatement. What I meant to say is that the property is CURRENTLY rented for $650/month with a 1 year lease.

The general consensus in my area is that if you only have to negatively feed your investment by a couple hundred per month, you're doing good. Folks out here regularly will finance a rental at $1200, 1400, or more per month, and rent it out for $800-$1100 feeling pretty good. If they break even, they feel like they hit the jackpot!

When I tell them they should look for properties that cashflow they get angry and defensive and tell me that those properties are "cheap for a reason". Well I've been to Texas and see properties in low crime areas where salaries are as good as in my area, and the property is 1/2 price.

within a 2 hr drive of my house, I found another one that would rent for $650/month. I can afford to put 20% down (it's a $45,000 house) easily and even with a 10% property management company fee my monthly mortgage+fee only is about $325. Mean's i'm cash flowing just over $300/month before maintenance.

So what am I missing from this equation? Before I jump in head first, what should I be looking for? House was recently fixed up quite a bit, good windows, floors, counters, etc. I need to check the roof and foundation but most of the houses in this particular region that I'm looking at will cash flow, yet the local investors I talk to won't even consider it. why? Am I missing something?

Thanks for the replies Guys. I somehow never received notification or I would have been here yesterday.

either way, Will, you have PM...

thanks!

Can someone point me in the direction of a template or an idea of what all should be covered in a 'letter of interest'? We are looking at a building that won't be available until the first of the year, but the owners (heirs) have requested that we drop a letter of interest past their office. I'd like to express an interest without overcommitting until I can get more info on the buildng and actually go inside...

thanks,

You know what's funny? Those motivational speakers who say things like "make $45k in 45 days!" or "How would you like to double, or even TRIPLE your income next month?!"

those guys always drive me nuts because they are so shallow and typically scammers....

but in all honesty, for those people who truly work it hard and don't give up, wealth does seem to acrue in a moderate amount of time. Maybe it's not as quick as "tomorrow" but the majority of the people trying to get rich by tomorrow aren't even following the rules of those programs/sytems anyways.

seems to me like the number one rule in any kind of business is 'be prepared'. This would include doing your research, exit strategies, emergency planning etc.

How many businesses go broke every year due to unanticipated issues such as higher-than-expected costs, or lower-than-expected returns.?.

or not having cash or at least a line of credit available for emergencies down the road, like car accidents (company vehicle?).

She doesn't want to ever do real estate to be honest with you. She's nervous about all of it, but at the same time uninterested in learning more because, she's happy with where we are ;) hard to argue with that mentality...

I have located a structurally solid duplex for $69,000 (asking price) in an area where rents for these individual units would go for $575. So a single unit rented could possibly show postitive flow, but a fully rented duplex would definilty be positive.

The nice part is I could easily float the mortgage with just extra money that I am socking away now so even if I was tenantless I'd be just fine.

I can't imagine how I'd ever find a better deal, this one sounds pretty good to me.