All Forum Posts by: Michael Johnson

I will be moving out there to attend IU for my masters and I am trying to get a feel for the market. I am looking to buy a place for school then turn it into a rental when I leave. I know there are some things/fees associated with HAND, but am not sure of specifics. I am also trying to get some kind of data on the seasonality or ebb and flow of tenants of  since it's a college town. 

Looking to connect with some folks in Bloomington, IN. I have reached out to some members that I found via the search feature but haven't received many replys. 

I'm sure you have some good contacts in real estate with your past, maybe get some people together that you trust and pool some money to buy an investment property. 

Although the 1% is great to have in a property, in many markets it just isn't possible. I'm sure you're familiar with the Coronado area. Many properties there have 2% cap rates and will never meet the 1% rule. Does that mean they are not investment worthy? Of course not, they offer a safe long-term investment in relation to many markets and therefor pay less premium. 

I think it is important to make sure your spreadsheet (or whatever you use to analyze property) is accurate, so bouncing it off someone else who has experience may be a good idea. That way at least you know your estimates are rational and fairly close.

@Paul G.

Your appreciation figure only added 1 year of appreciation. The sales price would be 195,000 minus about 8% for comm and fees leaving you 180k minus the loan so 70K not 39k.

So your off by about 30k in profits there.

I was in my thirties and I just started talking about with friends and acquaintances. You'd be surprised how many people have thought about it or want to do it but never have. I partnered with someone and got the first deal done.

I would suggest that you join the real estate society at UCLA. You will build some relationships there and get lots of great knowledge from that community.

For me personally, I use many free websites to find the general area I would like to invest in. Like looking at job growth, unemployment data, and crime stats. Once I find an area I research rents and selling prices via free sites like trulia and zillow. At that point I contact a local realtor and get put on an MLS search and work with the realtor do see about any off market deals that fit my criteria.

With a cash out loan, you will probably get a better rate than with financing on an investment property. And you will need the cash if your going to the courthouse to bid.

This is great question and unfortunately it doesn't have a straightforward answer. The real estate development side of the house is very complex that involves a lot of legal and procedural steps to make it happen. Although you're in construction, I can't say how much you know about what happens before the job site opens. 

If I were you, I would speak with a developer in the area, they can give some pretty close "back of the envelope" estimates on what it would cost for what you have in mind.