All Forum Posts by: Account Closed

@Engelo Rumora

How do you buy condos with so little down? PM me I want to learn from you!

I was curious if anyone has purchased any condos that are held in a "condo pool". My understanding is you buy the condo, its yours, and you can elect to keep the condo in the rental pool for the property. So the property will essentially manage renting it out, cleaning, etc. I'm sure it's a hefty fee, but seems painless for someone like me who is out of town. Does anyone have experience with this? Do they leave enough meat on the bone to make it worthwhile?

Hey all - I was curious if anyone has purchased any condos in Galveston and kept them in the facilities rental pool. Places like Casa del Mar and The Victorian have some setup where you can purchase the condo, then they will manage renting it out, cleaning, etc. I'm sure it's a hefty fee, but seems painless for someone like me who is out of town. Does anyone have experience with this? Do they leave enough meat on the bone to make it worthwhile?

What was the main thing that made you not invest with them? 

Sincerely thank you. I think that's a good idea for Q1

Hey all,

Question 1:

Looking for some help with this. I'm not a super savvy business guy. I've been looking into getting into real estate investing for a while, and I think I found my first purchase. I plan to work for about 13-15 more years before I would like to retire.

Single family home, on a street full of other houses that look the exact same/floorplan/layout. $238,000, $5000 to closing. I would put down 15%, and on a 30 year fixed cash flow around $350-400/month, or I could do a 15 year fixed and lose $150/month. The way I see these kinds of rentals is that $400 is peanuts, the real money is when they are paid down/off, and you're cashflow skyrockets. I'm debating the 30 vs 15. I like the idea of the 15 because I do not need the $400/month cash flow, and I would see greater income quicker if the house is paid off quicker. With a 30 year, I'm getting money from the cash flow, equity pay down, and appreciation. With the 15, I'm losing money monthly, but getting to the equity pay down quicker, and will also have appreciation.

What would you do?

Question 2:

My primary home is 3 bed, 2.5 bath, movie theater, pool, outdoor kitchen, fully remodeled with "the best", in upscale neighborhood. I bought it for $410,000, and I've put around $100,000 into it, and it recently appraised for around $518,000. I have the house on a biweekly 15 year loan, which should be paid off in 13 years, with a current balance of around $350,000. The house feels cramped, has a galley kitchen, and upstairs makes me feel claustrophobic (I'm not being dramatic.) I love the place, but it's not my forever home. I've found a home I like, that I am *considering* purchasing. I think I can get it for $705,000. I plan to work for 13-15 more years, so I was thinking of doing another 15 year loan on the house. But I don't know if that's the best idea.

My question is should I sell or rent out my existing house? I worry because it's so beautiful, that someone will **** it up, but I have to think of it as just a rental, and not be emotional about it. My thought is that I could do a 30-year loan on the 700,000 house, and then when it's time to retire in 13-15 years, I could just sell my current primary residence, which would be paid off by then, and then that would be enough to pay off the remainder of my new house's mortgage. So basically I would keep my payments low by doing a 30 year loan on the new house, and then keep my other house rented out, mortgage being paid by someone else, then sell it in 13-15 years, and use that money to pay off the balance of my new house mortgage.

There are several issues. My current primary residency has a lot to maintain. Weekly pool cleanings/chemicals (a company does it for me), landscaping, HOA, and the fact that it's on a 15 year mortgage so the payments are around $1600/every two weeks. I highly doubt I could rent it out for enough to cover all of those expenses. I would think more like $2400-$2500 / month, which would put me in the hole about $1000/month by renting the house out. In 13 years that would be $156,000 down the hole, but it would mean that the mortgage is paid off, with a house that would have a value of at least $520,000, assuming it just stopped appreciating, which it wont because its in the nice neighborhood that is extremely strong.

The other idea is to just sell the house, take the $145,000 profit, and put that towards the new house, put new house on a 15 year loan, and suck it up.

What would you do?

Is there a way to take advantage of mortgage paydown before the mortgage is completely paid off?

Hi everyone,

I'm in the analysis paralysis stage of purchasing my first SFH rental property. I'm looking at a $150,00 2/2 townhome, that I think we can get for around $138,000. After all is said and done, it should cash flow around 300-400 a month. But I'll have to put around $27,000 down, to generate 300-400 a month, or about $4500/year. What I'm struggling with is that 300-400 is peanuts. My question is how do you become wealthy doing this?

I appreciate that once the house is paid off, that 300-400 a month becomes almost a thousand a month in my pocket. I also appreciate that if I had 3-4 houses, and they are generating an extra 300-400 a month, then all of a sudden I'm making $1500-$1600 extra a month, and then you can snowball payments to one house, and get to that $1000/month extra quicker, then pay off the rest quicker too, then you have 3-4 houses each generating $1000/month, etc.

Is that how you get wealthy? One house won't do it, but a handful, or even ten houses, will?

Please enlighten me. Thank you.

This idea is absolutely terrible. You're wanting to "rocketship" a career selling high end real estate without having sold any. My parents sold their house, $2,000,000. They didn't look at fancy real estate billboards. They asked around to their friends to see who is the best in town at selling high end real estate. They found a guy, I've never seen a billboard or advertisement from him, and he sold it. He has the bulk of the high end listings in town. 

My god, don't take a loan to do this. You clearly can't afford to do this. You should have been saving from your good, stable job to launch this career. You are going to blow through that $40,000 so fast, then have nothing. Oh my god don't do this.