All Forum Posts by: Eric P.

Thanks Morry

My student loans aren't horrible, $30k around 5.5% I could put them at the minimum payment if I had to and save $100 a month. We don't owe much on the cars and they're only 2.9%. So although I have debt my interest is lower then the interest I make on my investments, so I'm comfortable not rushing to pay it off (student interest is tax deductible). I know the rent seems high, but in north jersey this is actually a good deal for our home. We did live in a 4th floor walkup, 650sq/ft, old as heck shoebox that cost us $1650. We hated it. The extra $ is worth our happiness, I now have a 1900sq/ft end unit town house on the water and its amazing ($440k to buy, $12k taxes, $280 HOA) Even if I tried to get my rent cheaper we wouldn't be saving enough to make it worth moving, esp if we want to buy within the next 18 months. it also had no Realtor fee.

What if you can't find a renter for 2 months, they move in and there's some major issues that cost you $2,000 then they don't pay and you have to evict them, you keep the security deposit but they destroyed the place.   They're broke so suing them is like trying to get blood from a stone.  You're out $5,000 inside of 3 months.  That's the first thing that comes to my mind.  Obviously you're gonna want to have backup cash and you can write off the losses.  But I imagine it's like any long term investment, if you hold it long enough it'll pay.

Hello everyone.  This is my first post, look forward to learning a lot here.  I've been interested in real estate investing for a long time, and have taken the idea off the back burner.  Here's a little info about myself

30 years old, married, combined income $150,000 ish. No 401k, No IRA (plan on starting after we own a home, but neither of us have 401k matching anyway) about $20k in private stock investments, and another $15k cash (the wedding and honeymoon took a chunk). I was recently promoted and my wife is looking at a promotion in Feb. We live in NYC metro area so we were living paycheck to paycheck till this year (monthly bills are around $6,000+). Starter homes where we live in a safe area are $400,000. Currently rent $2,400 month. We hope to move within the next year, so for now we plan on continuing to rent. Our only debts are 2 cars ($24k total), and my student loans ($400 a month) credit cards have been paid off. With the promotions we now have an extra $2,000-$3,000 extra each month which we're saving like crazy for 20% down on a nice primary residence.

I've been considering purchasing an REO in my old hometown. I like that they only require 10% down with no PMI. My father is newly retired and pretty much the best handyman I've ever known, I figure I can take full advantage of his skills and have a property manager type as a backup. I also have a great real estate attorney who is a friend and I have some connections within the state who work directly with tenant/landlord rights and evictions so I can gain a ton of information from them should it ever come up.

I still have some more homework to do before I jump in fully, but one of the places I have my eye on is currently around $110,000k  this would require a downpayment of about $11,000.  I'd want an extra $5,000 for closing costs or surprises.  The HOAs are $150 and the taxes $3,000.  All in this place would cost about $900 a month and other condos in the same neighborhood rent for $1,100-$1,350. (this is in a safe town with a great school district)

Am I off to a good start? Part of me feels like I should have another $20k saved up before I even consider doing this. Is an REO condo a good first investment? Should I scratch this whole idea till I own my own home? Like I said I still have a ton of homework I want to do, any suggestions or links I should be reading through would be very appreciated.