All Forum Posts by: Peter Nierman

Hi all, 

So I was recently looking at purchasing my first true rental property.  However, I apparently do not qualify for a second mortgage.  

I own a home in Seattle with my cousin, which has a mortgage of $350k.  Even though we co-own, the entire payment counts against me.  The other issue is I am paying $1450 per month on student loans.  

I have money for a down payment and could carry the mortgage of a second place on my own because I have renters in my home keeping my expenses down.  Any suggestions as to how I can buy a rental or should I just work on paying down my debt?

Thanks,

Peter

@Rick Baggenstoss thanks for the great advice.  A good deal for me could look like a home that costs 90k and gets 1100+ in rent and will cash flow at least 200 to 400 a month when accounting for capex etc.  I am taking a home equity loan out of my main residence that i own with my cousin and will have access to 45k+i have extra cash if necessary.  So open to ideas.  

@Marvin McTaw thanks as well. Makes me feel much more comfortable investing down there with all the great advice everyone has!

@Anna Watkins good to know...i will definitely be flying down there to see it in person.

Thanks @Marvin McTaw!  Why do you think 30034 is appreciating more?  Looks like there are newer homes - is that part of it. 

Also, I am looking more turnkey preferably.  I am speaking with an agent/prop mgr right now who has some properties in the area. 

Hi Everyone, 

I live in Seattle and am looking into buying a rental property or two (probably single family homes) in the Decatur area of Atlanta.  Does anyone have thoughts on this area for investing in rentals? This is my first foray into out-of-state investing; and this will also be my first true rental property (i have a mother in law in my house). 

Specific zip codes where I am looking are 30034 and 30032.  Despite the fact these homes are all in Decatur, Zillow seems to predict varying appreciation - one house up 7% over the next year, whereas another not too far away down .3%.  Any thoughts from locals would be appreciated.  

Thanks, 

Peter

@Marty Bosse - are there any turnkey providers you would suggest?

@Scott Cornelius thanks for the link.  Will listen on my way home. 

@Jeff B. - anymore info you can share about your out-of-state investing experience would be welcome (ie cautionary tales).  I would love to invest nearby, but Seattle is just too expensive.

Thanks everyone! 

Thanks David.  That is exactly what I have been told.  My friend owns a house in a fairly bad neighborhood in Philly, but he is a contractor and lives there.  

My inclination is to stay away and find a city that is a little bit easier for an out of state investor to navigate.  That is one reason I have been looking into the Atlanta area.

I am preferably looking for multi.  I found what appeared to be great deals around Temple Hospital, but my buddy in Philly said the homes were in a horrible neighborhood. 

Hi all, 

I am an entry level investor (own my house with a mother-in-law) and am looking to buy my first true rental property.  Since I live in Seattle, where prices are crazy, I am looking out of state.  

Currently, I have about $50k for a down payment and have been looking in Atlanta, Indianapolis and Philadelphia.  It seems all the good deals in Philly are in bad areas, Atlanta is not as good as it was a year ago, but Indy looks pretty good. 

Would appreciate any input from others who are investing out of state or who have an idea as to what markets are safe but will still cash flow.  This is a pretty big step for me, but I am ready to take the plunge.  Also interested if people have input on how to manage out of state property - figure I need property management/yard maintenance. Thanks!

Peter

Hi everyone, so I co-own a home with a family member and am seeking some advice.  Backround - we bought a home (with a mother-in-law) 2 years ago.  My cousin has since moved out, and I rent out his room.  My girlfriend also lives with me and pays rent.  My cousin does not want to keep the house long term but does not want to be bought out yet b/c he thinks the market is still going up. 

Under our present agreement, we have set specific rent for myself, gf, and tenants.  Above a certain amount, all profit goes into a joint account (50/50). My cousin still accrues equity and gets tax breaks. 

One reason I want to buy my cousin out is that since he moved out I have been doing all of the yard and home maintenance, dealing with tenants and handling finances.  He has done almost nothing, but continues to receive about $200 a month in profit from rent.  I think he should be sharing more of the burden of maintaining this very high maintenance property (large yard) if he wants to keep getting all of the benefits of home ownership.  

For more info, the rent we are getting for the upstairs (where I live with gf and tenant) is about what we would get if we rented it out separately.  My current rent is about equal to what I paid when my cousin was still living with us, but now I am responsible all of the work in the home.  

One reason I feel he should share in maintenance responsibilities (at least chipping in some money for a gardener) is because I am maintaining the home for, not just myself, but also the tenant in our mother-in-law, my gf, and the upstairs tenant. 

Your thoughts would be appreciated.  Thanks!

Peter