All Forum Posts by: Michael Carbonare

I'm in southeast FL, and in my area a starter home might run about $600K.  That $600K house will have taxes of approximately $9K-$10K/yr.  Homeowner's insurance will run you about $12K/yr.  Of course, there are variables that will affect those numbers but they're an accurate estimate.

 When in doubt, follow the money.

@John Archer You said it yourself:  "It almost seems too good to be true".  Caveat emptor

Growing up on Long Island I'm very familiar with the cost of living there.  Housing, property taxes, heavy govt oversight. . .among the many reasons the area has a negative population growth.  But there are many locations that are similar.  Just about any metro area along both coasts are unaffordable.  Down here my way in south Florida, the homeowner's insurance alone will choke you.  $11K/year is now the norm.  What's a guy to do?
Well, I suggest you break out of your comfort zone and start looking at markets beyond your current location.  I've flipped properties lately in Oregon, in California, and in Texas.  With the wealth of information so readily available these days there isn't any reason not to do so. Feel free to reach out with any questions.

House hacking and first deal shoudn't be your entry into real estate investing.  You will make mistakes and they will likely be expensive.  I say this from first hand experience, losing $25K on my first hack.  That was years ago and I can laugh about it now, but at the time it was painful, to say the least.  There are less risky strategies for the new-kid-on-the-block.

How is a text or call to a homeowner who is advertising their property for sale considered an unsolicited contact?

It's an old law adage, Scott, but an applicable one here:  A Man Who Is His Own Lawyer Has A Fool for a Client
I get it, you want to save yourself the expense.  But this is not where you cut corners, particularly if you are in a state where the landlord-tenant laws favor the tenant.  And if this guy is a professional deadbeat, he knows his way around the system and can drag this out for months.  That lost income may very well cost more than the attorney.

@Nick Carozza  I think much depends on your chosen strategy.  If a coach is an expert in, say, multifamily acquisitions, and you're interested in low entry point strategies, that isn't a good fit.  If, like many new investors, you are starting with a budget, then you might want to consider wholesaling or lease options.  What's your preference for starting?

Hi, Chris.  I'm not in Denver, but I have been investing in deals virtually for about 10 years.  Many approaches you can take.  I do lease option assignments.  They are risk free and minimal to no cash out of pocket.  For example, I recently did a deal on a property in Oregon.  I'm in Florida, homeowner lives in Arizona.  Bottom line:  $0 out of pocket, about 6 week from start to finish, assigned the deal to a tenant/buyer and pocketed $15K assignment fee.

The state of Illinois, like every state, has many markets, many of which will be quite different from others.  One market may be a strong sellers market, while a county over could be something entirely different.  If you're just getting started I think you'll find it easier to narrow down your search to a local county or two.