All Forum Posts by: Farrukh Ali

One the ways to get high return on investment is through value buying at lower price and making improvements (you can start with cosmetic repairs). This is something you can't get from a turnkey property as the seller is getting that value instead.

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Ran some preliminary numbers:

School district: 1/1/1

Age of house: 93 years

Average rent for 3 bedrooms within a mile radius for last 12 months from rentometer: $1266.

The numbers are very uncompelling. Looks you are paying a very high premium for a turn key property. Your Cash on cash return might be negative for a few years.

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Congratulations on your first property! Thanks for sharing your experience especially about the different properties you saw. It helps new comers like myself navigate in the world of real estate.

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Originally posted by @Dovi Schwartz:

How can somebody that only has $20,000 start off a real estate portfolio in New York is that even possible

I live in an HCOL myself and I would highly recommend out of state investing. It can take some getting used to but with the right team its a wonderful idea. Good luck on your journey!

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Originally posted by @Lee Taylor:

@Shelby Lunger I’m a full time investor in the area. If you have any questions or would like to connect let me know and I’ll help in any way I can.

@Lee Taylor would you be able to recommend an investor friendly real estate agent in Warner Robins. Would also be great to connect with you.

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Originally posted by @Joe Splitrock:

@Dan Handford lots of damage has been done to businesses and the economy but with all the federal money being pumped in combined with frozen payments (auto, utility, mortgage, student debt), we are not feeling the pain yet. Even with businesses reopening, there are still entire segments of the economy that will remain closed. Large venues like concerts, conventions, theme parks, casinos, weddings, etc. will all be hit for the rest of 2020. Even businesses like restaurants will operate at 50-75% of normal revenue for the rest of the year. Add to that mounting state debts that will likely bankrupt states, causing massive debt default. On top of all this, the virus is expected to be around through the end of the year, plus we have an election cycle in November! A change in the control of the house, senate or presidency will create a major shift.

I don't know the net effect of all of this, but I know in 6 months, we will have much better clarity than we do today. More importantly there is just too much irrational optimism right now. Everyone believes in a V shaped recovery, but am pretty sure we can expect a W with the second dip being worse.

I wholeheartedly agree with the sentiment that there is too much irrational optimism right now. I am a first time investor and I am going to wait at least few months before moving forward with my first purchase.

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All Forum Posts by: Farrukh Ali

Farrukh Ali has started 0 posts and replied 7 times.

Post: Bought my first rental property!

Post: About to close on first rentals - current rent climate?

Post: About to close on first rentals - current rent climate?

Post: My first multi-family property purchase

Post: How to start a real estate pro folio with only $20,000

Post: Warner Robbins, Ga investing to start?

Post: Not Investing Right Now? Here are the 4 reasons why