All Forum Posts by: Jarrid C.

I was assuming less maintenance, ie little to no yard, smaller roof, less fence, lower HOA fees and possibly other things I maybe missing.

I also think the cost compared to work maybe more affordable when preparing it to rent. 

Hello @Antonio Cucciniello, I, too am new to this venture. I'm in the Houston area. As I was reading through the post you mentioned the above, however how do you get the best value when properties are flying off the market as @Luke mentioned?  

I noticed there are bidding wars and people are paying ask price and over. I thought I would be able to place myself and join the game at a moderate pace. My wife and I have purchased our home do the next property would be an investment. I was looking at town homes but they are hard to come by. There is a larger inventory for single family homes. Do you have any knowledge regarding a preference for one or the other? 

I am thank you all for the wealth of information you have shared. I am very thankful for this sight because it makes it easy. Easy to learn in the sense that those that patron this sight are looking to learn, share and establish relationships.

I think back to the times when I will see an investor purchase a property in the neighborhood. I would inquire with just a simple question, "how can I get into this" Their response is either short, displaying reluctance to share their knowledge or they make it seem 10x as difficult as it maybe. Granted it is hard, but I mean when people try to make it seem so hard to the point they discourage you from doing it. I look at it as, it must not be too hard because people are still doing it and there are a ton of apt complexes owned.

I've had co workers do the samething. Co workers who are really good friends when you are helping them, but as soon as you have a question, just a question, Im not asking for any physical labor, just a question about something they do. They wont share the information. It is even more nerve recking because I work in the education field. Teachers are suppose to teacher and share their knowledge.

Yes, I understand that no one is going to tell me everything I need to know or share it all. Just allow me to get a little here and a little there to piece this puzzel together. I will fill in the blanks.

Again thank you all. I am feeling confident moving forward.

Like Minh - I always wanted to play monopoly in real life. ;)

How did you get in to real estate investing? Was it recent (last 1- 5 years) or beyond?

Was it ease for you?
Was it expensive?
Can it be done still today with little to no money (not that stupid info mercial BS)?

What would you recommend for a person that wants to be a little more aggressive?

Thanks

Uwe K. thank you very much.

I'M GOING TO MAKE ANOTHER POST THAT WILL KIND OF PIGGYBACK OFF OF THIS WONDERFUL DISCUSSION. I AM VERY EXCITED AND GRATEFUL FOR THE RELATIONSHIPS I'VE BEEN ABLE TO BUILD!

Thanks Charles, Thus far I have learned that it is a bad idea to purchase a property that cheap. I am going to have to do some work so I can get a property that is maybe 50k plus, such as these;

http://www.trulia.com/property/3029822505-2635-N-47th-St-2637-Milwaukee-WI-53210

http://www.trulia.com/property/3066284867-5907-W-Washington-Blvd-5909-Milwaukee-WI-53208

[\quote]
month/year

Rent: $1,900/$22,800 (Broke said I could ~$900/$950 for each side)
Less Vacancy (5%): $95/$1,140
EGI: $1,805/$$21,660

Taxes: $291/$3,488
Mortgage Insurance: $161/$1,930
Hazard Insurance: $193/$2,316
Maintenance: $100/$1,200
Utilities: tenant pays

Total Operating Expenses: $745/$8,934

NOI: $1,061/$12,726

Less Debt Service: $719/$8,633

Cash Flow: $341/$4,093

Cash on Cash Return: 6%/73%

Price Per Sq/Ft: $76.48
Cap Rate: 7.95%
DSCR: 1.47

Dan please dont take offense, im learning also, so I want to know how do I go about computing such numbers. I am not saying you did anything wrong. I to am a noob and would like to do something soon. Like for example if I try to get this property here

http://www.trulia.com/property/3029822505-2635-N-47th-St-2637-Milwaukee-WI-53210

or if i made a long stretch for something like this here

http://www.trulia.com/property/3066284867-5907-W-Washington-Blvd-5909-Milwaukee-WI-53208

How do I figure out my income opp. and profit margin? Also, are Realtor open with how much a property rents for? Can I find out some other way without having to talk to the Realtor, I don't want to be haggles to buy or be asked a gang of other questions, because im simply not ready at this moment.

Again please forgive me, I am not trying to take over you post. I would say its a good deal for you, but I need a better understanding of how the numbers work.

I want to be aggressive in making my first move. I have done a lot of research over the past 5 years. I now need to get going.

I need to be thrown into the water and sink or swim. Or course I will swim, that's how I operate.

Right now, I feel like one of those people who have studied something but never done it. Those are the types that think they know all there is to know, then when they do it, they realize its completely different from what they studied. Like raising kids, read all the books you want, not matter what, the real thing is different.

Keeping consistent with my kid theme, I go aggressive with the first property (child), then I do what most parents do, plan better for the next child or in my case property (properties).

So, Lets say I get a modest income tax return and bundle that with $ I saved. What do I do next? I have my pen and pad ready.

Thank you all for the abundance of information. I will surely spend some time this weekend paging through this information. Some new, some I knew about, but it all has my wheels turning again.

So lets distinguish between my options because the responses are blending.

A. Do I continue to rent and buy a cheap rental property for an investment.

B. Do I scout these programs to buy a home for myself and my wife

Note to Mr. Ramon - I agree with the family orientation. My goal would be to live where I can entertain. As I acquire wealth I will be able to purchase properties that more so reflect me.

As for entering the "Game", I figure I have to get in where I fit in, ya know. True some of those places may not be the most desirable, but people do the best they can. My goal is to provide a suitable place that meets their needs, and yet I can still bring in a little change but build wealth through equity as I know that would pay off more in the long run or for trading up.

@ Uwe - Thank you very much for the insight. You did say you have properties in rough neighborhoods, are there not any drug problems in those areas? I would assume that as a land lord you may not be able to control that, but would have to assume responsiblity if its going on in your property, which would mean the landlord would have to take action. I do understand that it would be best to own a property in the least drug infested area as possible.

For everyone - I am looking to learn as much as I can as I move forward to achieving my goals. I am very interested in obtaining all the knowledge I can through these forums and by establishing relationship with you all.

Perhaps I can be a mentee to someone. Maybe even do some work with some of you in my area, especially while it is the summer, with me being on vacation. Learning to fish and free labor would = Win <-> Win for both sides.

Uwe this would be something to consider, as well as others of you. Im sure you all have something to share.

Thank you for the excellent discussion.