All Forum Posts by: Hanh Hoang

Go to your local RE meet ups and talk to other investors! This is my number one recommendation. 

Pick a market and start learning the area. 

Save a few properties and watch them on the rental market if you are looking to do LTRs.

or If you are looking to do STR find local listings and watch those listings and check the booking availability week to see how they perform and how far out they get booked and the nightly cost. This is free and can be valuable when getting started.

In our lease agreement we use we put that the tenant if they break the lease are responsible for any marketing cost, tenant placement cost, and other associated cost of replacing the tenant. 

I am quietly trying to buy another 4-6 of these in the high desert area of southern california in the next 10 years.  I hope to have 10 properties ( i am currently at 4) and at the age of 41...... by the time I am 50 years old and spend the age 50-60 trying to pay them down aggressively.  Because the cost of repairs is so high I do need to pencil in $300-$500 in positive cash flow for repairs which will come up yearly.  

I am here in southern California and homes are still selling in less than 2 weeks.

The agents that price the homes correctly will get multiple offers and sell in less than 2 weeks.

The agents that price the home extremely low for marketing purposes will get 20 offers on a home.

I tend to price the home slightly higher than the market and see if any buyers will bite, if not we typically adjust the price down over a course of 30-60-90 days down to the price where we start to get showings and offers. 

Great post I do believe a lot of people under estimate the COST of holding real estate. 

I recently bought a 6 unit in Barstow and I knew it was a value add play where i had to spend some money to remodel the units to get the building filled.

With lost rents and capital improvements i have spent about $50,000 in 8 months of ownership to stabilize the 6 unit property.  It currently cash flows about 1500$ per month. For this specific property.

The 50K in funds came from my other 3 investments homes that currently cash flow. 

I did spend the 50K in money but it came from the 3 investments I had bought in the last 6 years. 

I am a southern California real estate agent and I would say that the stock market may get you a better return on your 275K in capital invested. There is no right or wrong way to invest. 

You could also look for a small multi family for 1 million and have the 275K (down payment) for that duplex or fourplex.  There will be more work and headaches but the property will be more advantageous in regards to deprecation, principal pay down, appreciation over the next 10 years. 

It just all depends on what you want, if you perfer a tenant in your back yard paying you 3500$ and that helps you sleep better at night then go that route.

If want a small multi family about 30-45 mins away from your home that has 2-4 tenants in there thats also a good way to go also.