All Forum Posts by: Neil Henderson

These threads remind me that Real Estate Investors are just like Stock Investors. There are Bears and Bulls, Shorts and Longs, Value, Dividend, Junk Bond, Quants, Bogle heads, etc. and so forth.

Always very interesting and informative, even when I don't agree with everything that's being said.

Great thread @Hang Lee

I want to make it clear, as I said in my original post, I'm not talking about using Zillow to evaluate properties. I'm talking about it as an initial screening process to use as a meta evaluation of a neighborhood. Much like I would use census data, economic data and property data from a variety of sources to evaluate a city and neighborhood as potential areas to buy investment property. 

When it comes time to actually put money down, you can bet I'm not going to be relying on Zillow for property valuations.

I saw a presentation from a company that was doing a more extreme version of this recently. They buy REO properties in bulk at a substantial discount (like $10,000 a house, 100, 200, 300 at a time), then they turn around and bundle those into a package of six houses and sell them to investors for an average of $18,500 per house; so investor buys six properties for ~ $120,000. Then this company, acting like a turn key seller; sells the houses with seller financing for you at about $30,000 each house. Typical terms of 5% down and 12% interest. They try to target a market where they can create a spread between the typical monthly rental of a house like they are selling, and the mortgage. So, the buyer is getting a house they can rehab at lower than the typical monthly rent for the area. Now, of course, these are typically not nice houses, but they are inhabitable, and the buyers are obviously those with poor credit otherwise they'd be buying with traditional mortgages. There's every reason to believe you're going to get some non-performing notes in their, but that's why they bundle into packages of six properties, to spread the risk. It was an intriguing concept but it's too high risk for my blood at this point.

Thank you so much @Julie Macd for taking the time to do this write up. 

This is an area of real estate investing that intrigues me and it's great to hear such a detailed description of someone's experience with the process.

As a former actor and lover of Cardiff by the Sea, welcome @Jamie Henkin

I'd be curious to hear your experience with turn key companies as you move forward. It's an avenue I have considered.

Is it possible to convert part of a SEP-IRA from a current employer into a self-directed 401K?

I look forward to hearing more about your experience @Ben Dunning . I'm likely headed down the path of out of area investing and have been researching TK providers.

My wife and I have been running an AirBnB out of our Casita at the front of our house for about two years now. 99% positive experiences except the time a couple of relocating college students stayed with us and snuck their cat into the unit. That was unpleasant.

Anyway, it has been a great experience. We only use AirBnB as their cut is low, the management tools are intuitive and we haven't felt like managing multiple calendars with other services. We've averaged enough monthly income to basically cover the mortgage on our house each month. 

Be warned, it is not passive income, though with ours being at the front of our house, the work load is typically minimal. We recently began to use a housekeeper to clean the unit and she does a great job. Even with that off our plate, you still have customer service with the guests, mostly answering questions during the booking and check-in process.

Funny enough, in exploring the possibility of buying a condo or two here in Las Vegas to turn into AirBnB rentals, it led me to @paulapant site, where she had done the same thing, and then to here.

I'll echo one last thing that's been said here. Know your local regulations. Regulations from city to city and from county to county vary widely. Ultimately, that things with short term rentals are in such flux here in Las Vegas is what made me steer away from expanding.

Good luck! It can be very fun and financially rewarding.

I've heard good things about Norada Real Estate. I have not personally invested with them but they are highly rated by Turn Key Reviews and they work in Indy.

Welcome Victor Gesmundo . I look forward to meeting you at one of the Vegas Meetups.