All Forum Posts by: Joshua McGinnis

Welcome @Clint Kreider

We went to a trustee auction for LA county last year and were surprised at the number of all-cash buyers sitting in the front, buying up the good deals. Were you one of those people? :)

The problem I have with principals like the 2% rule is that they're too black & white. They're great as broad guidelines, but as you mentioned in your post, there are markets where the rule either doesn't apply or just isn't suited for that particular market.

With any investment, you should be looking at the costs, income, and desired rate of return based on whatever your investment strategy and goals are.

This is coming from someone who has never used the 2% rule and simply made the investment on a. what it was going to cost me to invest and b. what return would I get in both the short and long term.

@Roger Heiser There is a really good guide to read that discusses HUD pricing:

Buying a HUD Home: The Ultimate Investor’s Guide to Getting a Great Deal on a HUD Home

The article states:

Welcome @Koob Moua

Have you considered forming a relationship with a realtor out there? A decent agent should be able to provide you information about the local market to help you make a decision.

If you combine that info you get from working with a realtor with the resources you'll find here, you should be prepared to make the best purchase decision.

I'd be happy to provide you a referral if you need one.

Welcome! A JP man! When I hear JP, I think of the quintessential Boston triple deckers. :p

I highly recommend you look at Waltham as a potential place for investment. There's a lot of growth, one of the lowest vacancy rates, and it is relatively affordable compared to other adjacent Boston-towns.

I can also refer you to an excellent property manager should you ever need one.

My pleasure!

Ah, I assumed from your profile that you were talking about the Los Angeles area.

Detroit is ripe with opportunity, but is poised to change dramatically over the next decade as the economy shifts into other industries. Perhaps someone more local could give you better advice.

I also recommend my L.A.-based CPA. She handles all of my real estate needs as well as my personal/business finances.

What is the ghetto area you speak of @Mike Wallace

My wife and I are both realtors and we're seeing areas that were formally gang-ridden and run-down start to slowly rise in values. This is to be expected given the cost and demand for housing in the better areas of LA.

Heck, Compton recently got a new mayor that is pushing for a very different city in the next 10-15 years.

From a realtors perspective, there's not a lot of incentive to be a buyers agent. NACA deals take longer, are more prone to falling through, and NACA gets 33% of the commission.