All Forum Posts by: Account Closed

It was $60k to buy in and take over an existing mortgage of $164,000 PITI payment of $801 and I have it rented out for $1650

I'm cash flowing about $700 per month on average on my turnkeys in Phoenix. I was offered an AirBnb near the stadium downtown but I declined since I don't know that investing model. It still may be available though.

 I don't know it it's as bad as everyone says. Hon Kong is a crowded as it gets anywhere in the world and this is the News:

LIVE FROM HONG KONG: Two Months After Initial Reports of Coronavirus Only 93 Cases and 2 Deaths in Population of 8 Million in Hong Kong

population of around 8 million. As of this morning there have been 93 coronavirus cases confirmed (the same as Singapore) and two deaths. The percent of confirmed cases to total population is minuscule at 0.0012%. Deaths as a percent of the population are basically nil at 2 in 8 million.

China has a population of around 1.4 billion. The number of coronavirus confirmed cases stands at 78,824 with around 2,700 confirmed deaths. The percent of confirmed cases to the population is also minuscule at 0.0056%.
Deaths as a percent of the population are basically nil. These numbers
are based on reported cases which may or may not be accurate.

It’s unknown if the actions taken in China and Hong Kong prevented
any deaths but it is suspected that they have. We don’t know if those
who died would have died anyways do to old age or other complications.
The data is not available

What would cause you to go so far away to invest in a community so unlike the southwest?  (CA and AZ and NV) I've read that you have to have local knowledge and that investing is "street by street" in many of the midwest cities.

Local knowledge, local laws, common business practices and such would seem to favor not taking on the added risk of investing in uncharted territory. I find Phoenix to be what I couldn't find in the midwest, and there are a couple of Turnkey companies in Phoenix that provide off market deals that are pretty darn reasonable, along with being more compatible with what I already know. Seriously, I'm curious.

The Turnkey I bought in March 2017 for $225,000 in Mesa AZ is now worth $300,000 in Feb 2020. So, if I do my math correctly, $300,000 - $225,000 is a $75,000 gain in 3 years.I don't know if that is good or bad but I cash flow it for $700 a month like clock work.

 I bought one as a Turnkey in Historic Phoenix and it is in high demand for AirBnB. It had already been rehabbed so that might make a difference in the process. But, generally check and see if there are restrictions for what you want to do and see if there are attractions in the area that AirBnB would work for.

 Take pictures, have her sign a disclosure that the smoke alarms were installed and working, video record the conversation. If that doesn't cause her to realize how important this is, you give her notice to leave based on violation of lease and appropriate law. She will either get the message and cooperate or you really, really don't want her as a tenant. Even if she is the irresponsible one, how would you ever get over it if one of her little ones died from your negligence?

 Yes, you can. And you should (except in Washington State where it is against the law). People need an option to losing their house and their equity. It is theirs to sell until the Auction is successfully completed. If you want more details PM me directly.

I would join a local real estate investment group. Some charge a nominal fee of $20 per month. If they charge a large fee to join that is not what I'm talking about. Meet people who are doing what you want to learn. I've mentored people locally over coffee and I've tried mentoring across country. Across country doesn't seem to have the value that local has. Lack of follow through over time was the biggest obstacle. Things in their lives "just got in the way".

 With a Lease Option you still own it (until he exercises the option) so you get the tax write offs, the depreciation, the principal pay down and no capital gains until it's actually sold. If it falls out of Lease Option (fails) then you can either adjust the sales price or offer it to another buyer and get another option fee. I make my LO's for 3 to 5 years to give the person time to qualify and sometimes they never exercise the option, move to another state (life changes) and I sell it on Lease Option again.

Just make sure the Lease is one agreement and the option is a different agreement to comply with Dodd-Frank which is simple enough to do.