All Forum Posts by: Shannon Fong

@Marc

Marc,  I do not look for validation on any decision I make. I always hold myself accountable for my mistake if they are to happen.  If you look for validation, then you look for someone to help take the blame.  If I have made up my mind,  than I would not have posted.  In reading up on advise on what to purchase it seems almost a 50/50 to go low and do a lot of rehab or go a little higher with less rehab.  

I have done math. My math I included the the cash flow return as snow ball to pay my debt back.  So yes, based on my numbers 10 houses in 10 years could be quite doable.  With rents between 950 and 1000 (if I can get higher, I read with section 8, that would be gravy) , and I can find 'good' deals in Baltimore City where I am primary looking.

Thanks everyone for your advice.  I will take my time and do what I feel is the best the decision.  I will add you as colleagues if you don't mind that way I can keep you posted.

Thanks Chris,

Well, I haven't made up my mind except for the no mortgage thing.  The one thing I gather from getting a mortgage is so that you can obtain properties fairly quickly.  Since it is not my goal to have 5 properties in a year, etc.  Obtaining mortgages to purchase house for cash flow doesn't seem an option for me.  I can purchase slow as long as I can create consistent monthly cash flow.

Yes, I have thought a about purchasing higher with less (hopefully) rehab work.  All options are on the table.  Some are just push a little more to the left and some are more to right.

I don't know it just doesn't work for me taking out mortgages no matter how good the deal is even if it is so called 'good' debt.  At the end of the day it's debt.  You owe somebody and they want their money.  Yes, you can sell it if all goes south.  However, I think if I owed the house right out than if all go so south I could whether the storm more because I would not have to pay back a bank or investors.   I would just have to pay property taxes and insurance.  Which in most cases is a drop in the bucket?  If push comes to shove, I could rent the property our for at the least the property insurance or taxes.  Or if I have multiple properties with positive cash flow that are not mortgaged.  The cash flow would be more than enough to cover property tax and insurance one or two tenantless properties.

I am not talking lightly of anything anyone is advising me, so I hope you not thinking that.  It's just my the wheels are turning in my head how to protect myself no matter which way I go. Because either way things could go south.

I really appreciate.  I will make sure I do diligent homework and comeback with questions.

Thanks guys,

My thoughts is I want to stay away from mortgaging a property.  I here all the pros but I see a lot of cons and the stress of trying to qualify, making sure you do have steady rent  coming in, and then trying to get another property mortgage on top of that.  I have to cover that mortgage somehow, property taxes and insurance all in the same swap.  I just see that paying for cash may tie up my cash for a year, year and half but then it's mine free and clear and I can move onto the next property.  This is just how I feel right now, things may change.

@Seth 

I don't mind putting in the extra 30-40K to be efficient.  Since I plan on holding the property for a very very long time.

I just want to be sure it's in an area were I can get a half decent rent.

Thank you both for our input and anything else you can suggest is always appreciated.

I posted a few thoughts I had on another post.  However, I think I have more solid thoughts and questions now.

I really want to do buy and hold real estate investing.

I have about 20K in a PLOC, a credit rating about to hit the 800's, and a monthly cash flow of about 2500+ I can throw into rehabbing.

I have been looking at Baltimore City cheap housing and wanting to buy between the 5 and 10k range in which I know will be most likely complete rehabs.  I am not scared.

I am willing to take my time and rehab; you know possibly doing the one house a year thing.  I am in no rush.  I am hoping to do 10 house in the next 10 years.  This is my no stress plan.

As I said before, I am not scared of total (gut) rehabs if necessary.  What I am scared of is investing in a property in Baltimore City and can't get a renter because of so many vacant houses exist on the block.

I know there are people that will rent anywhere but I am afraid being the state of Baltimore City those renters have rented elsewhere.  Even with section 8 theses low income renters can also rent in better neighbors.  My concerns is the renting pool is small in the areas I want to invest. 

 I want to know from your experience:

• What are some solid areas in Baltimore City you still can invest, even if I have to go a few thousand higher to get in?
• Is there a vacant to occupant ration (how many boards vs properties being occupied) on a block I should consider?  
• Should I consider sale by owners properties as possible good deals?

I know there are still great opportunities in Baltimore City but I know there are bad ones as well.

@Matthew Paul

• All offers outside of Canton should be $100 or less? (J/K)

I think I got it.

Good every everyone.

All advise welcome.

I am sure a property on some half abandon street in Baltimore City selling for under 10K will have a 92% chance of just gutting.

I have a few question

• Does a full gut job and taking it down to the studs mean the same thing?
• If I do full gut job, which I suspect will be removing all wall and floors, would I need a architect or can a GC help me with putting it back together?
• Would I need an architect if I am just taking it down to the studs?
• Can both an inspector and structural engineering tell me if a house is structural intake?  I asking if I gut a house can I hire one over the other.  I am thinking an inspector actually needs walls and things to inspect.  If all is left is the building, I would think you need a structural engineer.  However, an inspector in most cases might be cheaper.  I am not cheap, I just want to pay for what I need up front and not have to go back and pay someone else because I didn't get the right person in the first time.

Let me know,

Warm Regards,

@Rick 

That is what I feel like.  They are looking at me and seeing I am serious.

@Elizabeth

Yes, I am looking for properties that are around the 10 - 30K.  I think patience is the game. However, I am not getting any younger.

Thanks everyone

I have been reading and researching for a few months now.  Been getting my finance straight so I can start this process.  All ducks are in row and I am nervous but I know that is because I have not done.

I just didn't think it would take this long to acquire my first property if I was paying cash.