All Forum Posts by: Steve Laramie

Quick question for some more experienced investors.  I am currently in the process of trying to break into single family rentals in an up and coming city.  The property I am interested in making an offer on is located in one of the best areas in the city with a very high potential for rent income.  This property was purchased by the current owner  approximately 4 years ago for $110,000 and has since been earning a proven rental income of $3,200 per month.  The property was not a flip and no major renovations have been completed.  The owner is now listing the property for $285,000, which will be sold vacant after the current lease is up.

 I understand that property values in this area are challenging to compare, because there are very few neighborhoods in the city that are desirable, this being the most desirable one. Do you think that this is a rational listing price that I should entertain as a starting point for offers?  Or is this seller overreaching by evaluating the listing price of the home by its proven rental income?  For me, I am having issues stomaching such a high increase for a property that isn't even flipped, considering somebody who is not an investor might just want to buy this house and live in it? Bare in mind the property is turnkey and does not need any expected renovations.

Thanks

I am currently a Realestate investing newbie.  I have been in a position to purchase a property for a while now, but have been going back and forth on buying a home, or strictly an investment property first.  I have been renting for the past 5 years and was hoping to find a duplex to house hack.  However, duplexes in my region are far and few between so it has been a drawn out process. I recently found a low priced single family home in a very high rent area, 2 blocks from a major university in a rapidly developing city.  This is a very unique property and has a very large rent and equity potential. I have a partner who is willing to provide a private loan at a low interest rate for a 50/50 split.  Is there anything inherently wrong with my first purchase being a partnership investment property while I am still renting my home?  Or should I focus on buying a single family home for myself, and then invest?

Thanks