All Forum Posts by: Ava G.

I'm using the SFH Rental Analysis form (downloaded from this forum) and run the numbers on a pre-selling condo unit property we're eyeing on. (It's not in the US.)

The numbers are not in dollars but the cash flow is positive although not really huge (cash ROI is 5.96% and total ROI is 16.65%), unless we will rent out the unit higher than 1% of its Market Value (which is also possible).

I like the condo unit so much due to its location. IMHO, its location is unrivaled since it sits just beside an iconic national park, thus, the view won't likely be obstructed by another building. Setting aside the view, the building has a prime location in itself. It's within one of our country's major business districts and is a walking distance from offices, huge malls, international schools, shopping areas. That business district is just a few minutes away from our country's major business district.

Although the cash flow isn't that fantastic (since it's on the high mid-range market and HOA fees are not very cheap) we're quite positive of its appreciation value due to the uniqueness of its location alone.

What do you guys think?

I've been posting about our first investment lately and I'd like to get an idea if this is a sound investment.

We are not Americans and not residing in the US so our market is quite different. In our country, there are only very few highly urbanized areas (you can count them with one hand). Now, we are eyeing to buy a pre-selling condominium unit at the heart of one of the fastest growing urban locations in the capital. It's near offices, international schools, malls, and parks. This development is run by one of the top / most reputable real estate developers in our country with a good track record of finishing their projects and has been around for years.

We are planning to buy / reserve a condo unit with small monthly payments for 5 years (for our salary, it's not a big amount). At this stage, it has just opened for pre-selling and at its lowest price. We can reserve and then sell it for a profit when it's near finished or finished.

Of course, as with any investment, there's risk. But since I'm very new to this, I'm not sure if this makes a sound investment.

I understand. But let's say, it's not a condo but SFR. Which SFR (prime location but more expensive VS not so prime location but less expensive) would gather more tenants, in general?

We are considering two options as a first rental property:

1. A condo unit in the center of one of the fastest growing business hubs with a very good view of the city skyline. It's just a walking distance from malls, parks, hospitals, and offices. It also has better amenities & an elegant overall structure (similar to hotels). It's more expensive and will command a higher rental. (I personally want to live there myself.)

2. A condo unit that is near the business hub (but not within it). It's about 10-20 minutes ride from malls, parks, and offices. The amenities / overall structure is just okay, nothing too fancy. It's less expensive and more affordable rental property.

Let's assume that both buildings are developed by reputable companies and both have a nice interior design (say, I hire an interior designer to dress up the unit). In general, which of the two is a better rental property / has a wider market?

The answer seems obvious to me but I some things may be counter-intuitive.

The unit is $100k hence, applying the 1% rule, we'd rent it out $1k/month.

My concern is how to know if there's a market for that price and whether we can find them.

We are thinking of buying a condominium at a highly urbanized district in the Philippines which would rent at about $1000+ a month. It's just a walking distance from huge malls / parks / commercial buildings. This location is also near the central business district of Manila (about 15-20 mins drive).

The neighborhood is composed of expats and urban professionals who have mid-high range salaries. I've also looked at other rental properties in that area (condo units also) and they're renting at about $1000-1700 a month for the same unit type.

However, I'm very new REI and I'm not sure if this is too expensive. With salaries in that range, will people just buy their own units rather than rent? Is it better to buy a cheaper rental property (still a good location but not as "prime" as being in the center of the urban hub), thus cheaper rent, and therefore, more prospect renters?

(The US and PH market may be different but in general but I think there'd be a general rule when it comes to what constitues a good rental property.)

We are currently looking at a $100k condominium unit as a first rental property. We, meaning, my mom and I.

Everything else aside, the agent told us that banks usually loan the amount if the monthly payments are at least 1/3 of my salary (my mom is no longer allowed to loan due to her age).

What we're planning to do is to have a lower equity (say, about 15%) and loan the bigger amount (85%). We'll let the tenant shoulder the balance. However, since the loan is bigger, my salary is not enough to justify the amount we are loaning.

What are the other ways we can convince the bank to give us a loan? Or other ways to finance it?

(As a side note, we are not investing in the US and the market is a bit different so we are considering condos as rental property even if, in general, many do not recommend it.)

Thanks everyone. I'll look into your suggestions. Keep them coming if you have more recommendations.

Just wondering if there's an equivalent of "The Intelligent Investor" / "A Random Walk Down Wall Street" when it comes to Real Estate Investing?

I've browsed some books on Amazon and also here in Bigger Pockets but I'm not sure which are the classics or books regarded as the Bible when it comes to REI.

I'm an absolute beginner, as in I totally didn't know anything about Real Estate Investing a month ago. I'm looking for a really good foundation about REI that I can read about.