All Forum Posts by: Jordan Wight

I'm starting to look at possible homes to buy as my first rental property. I'm new to real estate investing, so wondering if someone could look at the home in the below link and see if you think it's a good buy or not.

31173 Kansas St, Lake Elsinore, CA 92530

https://www.zillow.com/homes/31173-Kansas-St-Lake-...

1. My friend Chris owns a rental property in the same neighborhood and recommended it, but I want opinions from all of you!

2. A friend Chris is a real estate agent, and owns several rental properties in Lake Elsinore area. He looked at the house and strongly recommended it to Chris, but Chris didn't have the money right now, so that's how I found out about it.

3. The agent says it needs $2-3k of touch up maintenance/repairs. But it's recently renovated, so overall a really nice place and otherwise should be relatively low maintenance.

4. Lake Elsinore is supposedly one of the top 5 fastest growing communities in CA. True? Commuting distance to Orange County, and potentially LA and San Diego.

5. Square footage is only 1k. There are 3 bedrooms, other properties in the area seem to rent for $1600-$2200. So with purchase price of $265k that doesn't get very close to the 1% rule. Is this obviously a bad investment, or worth running more detailed numbers?

6. What else should I be looking at?

I had previously posted this is a general forum before I found out about the OC forum.

I realized after posting this that it would have been better to post in the orange country real estate forum. But I guess it's not possible to move it, and not possible to delete and re-post. So I guess I'll just post both places.

I'm starting to look at possible homes to buy as rental properties. I'm new to real estate investing, so wondering if someone could look at the home in the below link and see if you think it's a good buy or not.

31173 Kansas St, Lake Elsinore, CA 92530

https://www.zillow.com/homes/31173-Kansas-St-Lake-...

1. My friend Chris owns a rental property in the same neighborhood.

2. A friend Chris is a real estate agent, and owns several rental properties in Lake Elsinore area. He looked at the house and strongly recommended it to Chris, but Chris didn't have the money right now.

3. The agent says it needs $2-3k of touch up maintenance/repairs. But it's recently renovated, so overall a really nice place and otherwise should be relatively low maintenance.

4. Lake Elsinore is supposedly one of the top 5 fastest growing communities in CA. Commuting distance to Orange County, and potentially LA and San Diego. 

5. Square footage is 1k, 3 bedrooms, other properties in the area seem to rent for $1600-$2200. So with purchase price of $265k that doesn't get very close to the 1% rule.

6. What else should I be looking at?

I'm interested in getting into real estate investing. I would like to buy a home to buy an hold as a rental property. I work a full-time job, so I don't want to dedicate a ton of time to this, and would likely get a property manager. I've been investing in stock for several years, and would like to diversify by getting into real estate. I have the capital for a modest home in a suburban area. Here are my doubts, I would like some advice.

1. I live in San Francisco. It's way too expensive to buy here, and even if I had the capital, the purchase price would be way too high for the rent I could get out of it. So my question is, is it worth trying to buy a rental property somewhere I don't live? In the BP Podcasts I have listened to, he talks so much about seeing lots of homes, driving neighborhoods, going with the inspector, meeting the seller, etc. I don't see how any of this is reasonable if I have to fly somewhere to do it. Should I just forget real estate investing for now?

@Michael Mannina - can you give a high level example of possible ways I could arrange a partnership? E.g., should I offer to pay the full mortgage, but give him x% of the monthly profit? Is it better to just split the mortgage 50/50, and split all profits/losses/costs evenly?

I'm brand new to real estate investing, and would like some advice on how to buy my first rental property and hopefully do it with a friend of mine.

I listened to the Podcast from Aug 7, 2013, and the guest speaker Kenny Estes recommended that when you invest in your first rental property, ideally you should do it with a friend/mentor who already has experience buying other rental properties. I have the capital for a down payment (without touching my emergency savings), but I don't know enough about investing to buy a rental property on my own. Is it really a good idea to go into business with a friend? If so, what are the possible arrangements for splitting the profit? For example, if I paid the full down payment, I wouldn't want to give up very much of the monthly income, but my friend wouldn't spend that much time helping me if he isn't going to get anything out of it.