All Forum Posts by: Eric X.

10% growth rate? Jeez even the most optimistic long term funds don't anticipate a 10% growth rate...ever. When I was in banking, we would telling institutional clients to expect 7% with a semi balanced portfolio. If you can get 10% consistently, you shouldn't be on Bigger pockets, you should be running your own hedge fund. 

Yes it is possible with an aggressive allocation but that carries more risk. 

And you DO need to take into account initial cash flow as well as completely depreciating the asset over 27.5 years. You have a physical asset that usually appreciates, creates cashflow, and has a large tax benefit. 

It is a different investment vesicle that is easier to predict.  Neither are bad investments. 

@Andrew McCotter

Foundation repairs can be a thousand to 5 figures depending on what needs to be done. 

I would request owner unseal hatch and have a foundation expert go take a look.

@Tyler Caglia

Congrats! I don't know too much about Ohio.  Are there properties in b,c, or d areas?

I'm In Illinois. anything under 10k a year is a good deal for me.  Only half serious...but my small 2 bed 1 bath duplex have taxes of 4-5k. And some of my 1500 sq ft townhomes have property taxes of 7k.

Keep in mind if taxes are high, the rent you typically get to charge is also high.

안녕하세요! Well that's the extent of my korean...but rule of thumb would be..

*growing population

*job growth/opportunities 

*reasonable real estate prices

*friendly landlord laws

*low taxes

Ohio, Indiana, Arizona, Texas, Tennessee, The Carolinas(not sure just see a lot of investors from there)

I'm in Illinois which is mediocre at best but my family is here so what can you do. I do have some homes in Phoenix area and San Antonio and I would much prefer investing over there if I didn't have my home base in Illinois

Welcome back to the states!

It depends on your LTV and your credit profile. Anything above 75% ltv and it jumps into the low to mid 4s. not bad but not ideal.

what state are you in? My broker only does Illinois. However the banks she uses are Provident and UWM. They both have fairly high requirements in terms of LTV, credit, and income in order to qualify for the best rate/terms

@Mo Muigai

Is the 3.65% on an investment or your own home? if that is for investment, that is a really good rate and completely reasonable.  I would say 2200-3200 is the range I've seen on refi costs in Illinois.

@Matt Paris

I typically list on MLS. I am an agent so I save some there but I'm willing to pay if someone can bring in a nice quality tenant fast. MLS still has the best exposure by far.

@Tj M.

I think rates will probably be fairly low at least for the foreseeable future. I am getting 3.8% on 75% LTV for investment properties...so that is a fantastic rate. I'm still picking up properties that make sense but I'm going to use a few larger homes and my own home as a refi piggy bank in case the market tanks to the point of going "all in"

Good banks are paying 1.6-1.7% so you are looking about a 2% real cost to hold the cash if you do just have the cash sitting in the bank. Not terrible but I feel uneasy with large sums in the bank.