All Forum Posts by: Matt Groth

You will fully understand Mike's post in the near future. I guarantee you know more now than you will in 10 years. A 19 year old, with little money, no real connections, and no experience, you can do all of it. Focus on real estate for 40 hours, get your degree,  and work your online business. I have a degree I am not directly using, and college is not for everyone, but it is certainly not a detriment. Agent is going to be a tough gig at 19. Not many 50 year olds will trust your "experience ". If you don't go back, build that online business into a monster, and invest the proceeds.  

I wonder if home depot marks up materials? They buy wholesale, right? If you want me to do your shopping, delivery, purchasing, etc., dont you think that comes at a cost? If you want best price on materials, you likely won't get the best price on labor. 3 guys have met with you for a very small job. 2 will never make a dime from you. I am actually very surprised how close the bids are. All are probably in the ball park. 

Interest rates have changed the price to median income arguement. If I buy a place for 300k, at 4.25 percent, the payment is basically the same as if i bought a place for 215k, at 7.5 percent, in 2000. The banks don't care about the big number,  they care if you can make the monthly payment. Tough to call that a bubble. Not everyone needs cashflow. 

If time is the big hang up, and I get it, invest in a reit. 5 minutes a year. Str's aren't that complicated, as others have said above. All of the info is available. You know exactly the amenities, reviews, and prices of all of your competition. The real money is in the details,  and those are market specific,  right @paulsandhu ?

Might be a longshot, but is it possible to move the closet? Or get rid of it all together?

Let's say you pay rent for 30 years. Now compare that to buying a duplex with no cashflow,  break even every month, but mortgage, expenses and taxes are covered by your renter. Now say the market is cut in half. Which way is better in 30 years? Now imagine buying a cash flowing property, in a good area, with insanely low interest rates, and it appreciates.  Personally, I am more afraid of NOT finding deals.

Agree with everything Tim said. I would go with the house. 80 seems low for the garage, and will make selling your property more difficult, and it's money you likely will not recoup.

Be careful borrowing against your residence.  If things go poorly,  you lose your house. As tempting as it is, I would find another route, like finding a partner. Can you afford the additional heloc payment if there is no profit, or a loss, from your flip? If the market dips, and you need to sell your primary, will you be underwater? It would be a great move if it all worked perfectly, but it doesn't always work perfectly!

No. Anyone worth anything in the trades wouldn't work for less than 25 per hour. Even if you supply the materials, 6 hours of labor per month won't get you anywhere fast. They pay full rent, you pay a fair wage. Keep the 2 separate. It could still be a win/win. Just be sure to inspect progress.

I think the problem is the word "salivating". RE should be mostly emotionless. The numbers work, you buy. If you are "salivating ", you will almost certainly buy too early, and be underwater,  or wait for a pullback that never comes. Not too many people jumped in with both feet in 2009. No credit, and too scary. It is easy to say you will buy like crazy at the big drop, until the drop happens. Who piled money into the stock market last christmas eve? They were either selling scared, or waiting for the "real" drop, that never came. If an economy could remain stable, and never have a recession, by definition,  would be good for almost everyone.