All Forum Posts by: Rich Thoms

I have been scouring the internet, working with a broker and looking through local papers. I just dont see how anyone makes any money buying rental properties.

Take for example the following which is typical in my area;

4 family home $329K Generating $3700 a month from rent

Using everything I have learned on this site, even if I (by some miracle) could convince the seller to take 60K less making the sale price 269K...
it would still be a bad deal... 3700 X .5 = $1,850(NOI) - $1,790(mortgage) = +$60 / 4 = $15 per door

when calculating the debt service on a deal, should I be performing the calculation on the entire purchase price or minus my downpayment? Without figuring downpayment , than the properties become more attractive. The above deal then would be factored with a debt service of about $195K
($1,297 per month) which looks like a possible winner making better than $100 per door.

I feel like I am looking for a Unicorn!

Am I missing something?

I am a newbie (as I have stated numerous times in other posts) here in the very expensive realestate market of Connecticut.

I am looking at several properties that have 4 to 16 rental units in each. The properties range in price from $400,000 - $925,000.

SO I guess the question is how do you approach your mortgage broker to explain that the property is an investment when you are looking to pre-qualify for a loan? Is the process the same as when you are purchasing your primary home? Does the income the property is currently generating help to get you qualified?

How do you find properties at a low enough cost to make the numbers work? I am new to all of this and am currently doing tons of research. I am trying to find out from those who have had success at this where they like to look for deals and how they know that a property is a good income producer.

Thank you so much everyone for the kind words. I am a beginner from Connecticut and looking for any help I can get in getting this venture off the ground.

My name is Rich

I am a very green newbie trying to learn how to become a successful Buy and Hold investor (rental properties).

I would like to begin purchasing multi-unit homes for rental purposes. I am feverishily researching the subject and what like to begin as soon as possible.