All Forum Posts by: Thomas Handy

Seth,
I use a property manager for my homes. I'm a buy and hold investor. I wish I had the time to directly oversee all my properties but it's hard to find the time. I talk to the PM and usually get an idea on how they are - first impressions count. I ask them the basics, PM rate, how do I get paid, how do they fix issues with the home, at what amount would I get notified before they fix something in the property, and others. I've been investing since 2004 and really haven't had any issues. When I retire I plan to set up my own PM company.

Also when you decide to visit the homes you own, you can use the trip as a business expense.

Tom

Seti,
Great to hear you're starting off on the right direction. I'm also in the military and have bought homes in every location I've been in in the states. If I was stateside earlier I may have even started buying homes earlier.

Where ever you go, I would research the area. Even though the area may be a military town, some areas may not do well as rentals. You have to see how many homes are for sale as well as rentals. Some areas do better than others. In some areas there may be too many rentals and you could have a home for rent with a high vacancy rate.

I would talk to a few banks, mortgage brokers, and homes with a owner for sale sign. There are other options available other than VA loans as Dion mentioned.

You may also consider buying a fixer upper. Since you plan to live there, fix the home a little bit (cosmetic repairs - landscaping, paint, etc), and you could get a higher rent as you transition out. Don't buy the best home on the street.

Also check out multi-family homes, duplexes and fourplexes.

Tom

I just looked at two Fannie Mae 3bedroom homes, $79,000 and $103,000. I was wondering how low I should make an offer. Both homes are in decent condition. The $103,000 home only needed few upgrades. This is great looking at everyone's list price vs. the sales price on these REOs.

Age Now? I'm 38 now.
Age you want to retire? I used to think about it but then started reading about other investors. Some investors are older and still work. They love what they do. I love real estate. I want to be financially free meaning my income covers my daily living expenses. I'll retire from the Army when I'm 43 and then will go into real estate full time. That's less than five years from now. I want to keep investing in real estate - give people a home to live in, fix up old houses, spend time with my kids, volunteer, and travel.
Net Worth needed to retire? Doesn't really matter. See my answer to the next question. I think cash flow is more important than net worth. Net worth just says hows much you're worth. Sure it can be used for real estate investing but other than that, it's just a number. It's money you can't physically touch unless you cash out for other investments.
Monthly Net Cashflow to retire? $50,000 month Some will cover living expenses, investing, and my extracurricular activities. I want to use my credit card, travel, and pay off my card at the end of the month. I do that now but want to do it more often. :-)

Tom

Jeremy,
Thx for reviving this thread. This gives me an idea since I meet with a title company next week.

Tom

I really don't think you'll get a mortgage of $450. As an investor loan you won't get the rates advertised. It may be a few percentages higher, possibly 4.75%. Plus your rate will depend on your credit score. Have you talked to anyone about financing? Also if it's a foreclosure are any repairs needed?

I visit Houston every couple of months. My wife and I really had a great time on our last visit on New Years. Previously we stayed in the Woodlands area, downtown and close to the Katy area. We haven't decided but between Houston and San Antonio we plan to settle down there in a few years.

Sam,
Welcome! I have a place on Oahu and bought it before the market took off a few years ago. Now the prices are insane.
Aloha,
Tom

Andrew,
Great job for just getting started. I agree with the comments above and would seriously consider offering less than the asking price. A few bucks goes a long way. Also where do you live? I grew up in Philly and then went to school in Ridley for a few years. Like Nathan said, the neighborhoods literally change within a block's distance.

Tom

Kelvin,
Great way to start the new year! I'm interested to see the responses on this from members. It's weird looking at how the seller bought some homes, sold them, and then bought them back a few years later.

Tom