All Forum Posts by: Hadar Orkibi

I also didn't hear about this option. Like Dean mentioned there are House New Zealand type investment where an investor own the house and lease it out for 10 years to HNZ. It's not a good investment in my opinion for the same reasons Dean mentioned. If you buy in Auckland or buy well in large city and have the house professionally managed you don't need to worry about vacancies.

Yes I could see that, especially at the start of Sanford Ave, nice front yards and houses and nice cars (one had a Corvette). Sanford looked like a cul-de-sac, and it looks like the closer to Old Forge you get the better it is. Old Forge looks Good too, we call it "leafy suburb" the north side and Ct have nice houses there. looks like good pocket around that junction of Sanford and Old Froge. Lundington also looks OK. 

Its Exciting to see, im wagging my tail here. Im sure to visit LR when coming to Memphis. 

In regard to the MFH, Whats the typical vacancy rate there/ demand once they are done up to standard?

Wellcome to BP @Andrew Butler, 

The BP Podcast is great place to start and learn about Real Estate, it has content to all levels and like yourself, I'm hooked. 

Considering your questions above I would like to recommend you listen or read the book Tax-Free Wealth Written by Rich Dad advisor Tom Wheelwright I JUST finished it and its great. Highly recommended to any REI. And it will answer your first questions and will show you how the Rich don't pay tax, often At all! There are so many tax incentives in the US Tax system that i was blown away.

To pay yourself first means simply this: Before you pay your bills, before you buy groceries, before you do anything else, set aside a portion of your income to save, some say 10% of your net income. 

If you put these saving towards ASSETS that produce income like Cash Flowing Real Estate you can use this cashflow to pay off you liabilities. 

Im not sure exactly to which part of the "not paying tax" on the income you are referring to, but there are many ways that this could be done. (and the book cover them all). 

One way that Rich Dad is referring to Tax free income is by refinancing assets and pulling out equity which is affectively tax free cash. this is not my favourite strategy as if one keep doing that regularly one just create more and more debt. this strategy is safer in high capital growth environment but very risky in no or slow growth market. 

Another way is to off-set your income with chattel and building depreciation deductions from your rental property.

In regard to your situation, I would start with listening to the book and then consulting a good CPA. 

Although BP is great and there are some very experience people here, I always think that seeking professional advise is money well spent. 

All the best.

HI @Alex Craig and thanks you very much for the comprehensive reply.

Thanks to you too @Derrick Craig.

Feel free to PM me Rent Trac link you refer to Alex. 

LR looks interesting and I would consider it as an addition to the Memphis portfolio im intending to build. This could be a good option to own MF. The only challenge i have with MF, been out of state is managing the re-positioning and Management.

What sort of price rage they are going for say 5-10-15plex and what level of returns investors are achieving? I would assume more the SFH.

I just had a "Drive" on Sanford Drive (not Street) with google map its in an area called Sturbridge, not far from the LR Reserve Park. starts with SF and then mainly MF blocks. 

Again, thanks for sharing.

Hi Team, 

I would appreciate some feedback and insight about Little Rock Arkansas.

Which areas are good to invest in with good quality tenant demand? Say B+ areas. 

How is the local economy doing?

Employment?

What yields could be achieved there in reasonable Buy & Hold areas?

SFH Vs MF

Recommendations for good property management there?

Agents and TK providers?  

Im considering LR in addition to Memphis, Pros and Cons? 

Thanks In Advance! 

H.

@Danick St Jean don't buy a house for 20k unless you are a builder and VERY experience investor in the areas. you are clearly not ether of these so please be careful.

in this lower price range you may need to spend double that money on rehabbing the house and even after that the areas at that price range typically very difficult to work with. war zones and unemployed tenants.

Also when you consider buying from friend make sure you talk to 2-3 independent local property managers and seek their opinion about the location and the property itself.

get building inspection report and talk to the current property manager and tenants.

you better off saving for another 2 years and buying better property, by then the market could be more of a buyers market anyway.

all the best and take care.

Congratulations @Willow T.  on converting a frog to a princess. nice interior design too.

Do you mined sharing what location/ Zip was it in Memphis? 

HI @Bart H., just to mention that your CPA like your mortgage broker don't have to be where you live .  Often you get what you paid for, but its possible to fined someone who is good and willing to give you a set price for exactly what you require. just ask. 

@Tas S.  It depend on your loan/s and how they are structured. If your loan is fixed with fixed payment usually there is a set % of the principle you allowed to pay down on top of you monthly set payments. 

if you structured your loans that some are fixed and some on variable rates often you can pay down the variable (not fixed rate) as much as you want. but it depends on the fine print in the loan documents.

One more option is to pay a penalty on the fix rate to "brake the loan" and then you can split it and pay some off. BUT with the low interest rates you had in the last few years think twice before you brake any loans and pay penalties as it may not be worthwhile. 

Best thing to do is talk to your lender or mortgage broker. 

Thanks for sharing @Derrick Craig, building costs for materials and labor in NZ are very high. 

for single level houses, Brick and Tile and Single Garage, say 3-4 bed 2-3 bath you talking $2500-$2800m2 ( per square meters)   that's about $1800m2 - $2000m2 USD.

So unless you are a builder and can cut the margin, 3 bed, 1 bath house, say 1100sqf (which is around 100m2) price will start at $180k USD. To build, slab up. standard speck.

Small country at the end of the world I guess...