All Forum Posts by: Michael Wang

ok thanks, I was trying an intro plus question, I will paste this into a post there :)

Hi fellow BPers! After several years of lurking and reading a ton on here, I have decided to say hi, and see who else here is looking to get into the "Bawldguy Investment Note Group". Not the fund, but the new group, for all you fellow nonaccredited investors. Anyone here thinking about it, already sent in their retainer fee, or sent funds? I think this could be a good avenue for me to put part of our money in with good passive returns, letting money that goes in ride in our Roth IRA. Does the money you put in come from your Roth to the fund, then all the profits go back to the Roth? Anyways let me know who's getting in on this :)

Mike

Thanks for all of your replies! I am glad this is a very active online community!

Dale : we probably could have tried apartments. Besides not looking out for apartments, I don't think we were able to find anything in a desirable area. Certainly would have considered a 20k apartment renting for 400 per month :) The condo certainly isn't a ton more, and rent is 580. But that isn't really accurate, as the net is more in the mid 400's after you factor in HOA and other costs. I don't see many apartments for sale out here, mostly entire apartment complexes, and condos. Maybe down the road we can consolidate some of our holdings to one of these large complexes?

Brian : Yes you hit the nail right on the head. I am risk averse haha...I accept some risk, but pretty minimal. I was brought up to not buy what I can't afford haha...how do you approach banks with the prospect of each consecutive loan? Don't they see that I am purchasing a new home every 5 months? Does the 25% down and a great history of keeping up with(or paying more than the required)payments make getting the loans less difficult? We are a couple that always pays our bills on time and always have an immaculate credit history. So I would assume that helps.

Yeah I definitely have that rule of thumb, where I will figure out what my loan payments/costs will be, and what the going loan rate is for the homes we are looking at, and finding a sweet spot of margin.

We are likely to pay off the homes faster for sure if we go this route of getting another home every 6 months or so.

Phillip/Dale, I definitely see your logic with getting 2 80k houses for more rent than the one 160k. I also like finding those apartments for 20k. Though there are very few apartments in vegas that low, and apartments seem to mostly sell as entire complexes of units..I've seen as small as 10, up to 70 unit apartments for sale.

Phillip : Yeah I have learned to only buy in the city and desirable locations near convenient shopping locations, and highways. I know I love that, and I am sure tenants do too :) So for that, I guess steady rent cashflow should be ok huh? More steady than the stock market even in the worst days! haha...

All : Maybe a good strategy could be to be on the lookout for those 80k homes and those cheap apartments, and as they become available, we can pick them up. Do people generally use a property manager?

Hello everyone, new to BP here, but have been reading here for a while. I'll first introduce myself. I am 36 years old, my wife is 38. We both work full time, no kids yet, and live in NV. With our income, we are able to live solely on one of our incomes, and save approx 80k a year. Here is my plan...please tell me if you see any certain flaws in my logic..haha...

A year ago we made the decision, to take 36k that we had saved up and buy a small bank owned condo and use it as a rental. I figured out that the going rent for these units in this area are around 600/month. With taxes/maintenance figured in there, we figure it to give us ROI in 10 years give or take. Then after that it's all passive income. Ok so after it's paid off, it will give us approx 5k a year. It's now just a year after buying it, and I've made 11% of my investment back. I figure it should be the same each year.

Using the same logic, we are wondering if we can every 2 years, save 160k or so...and look for good deals like the condo, except we get single family homes instead, cash. I figure I'd like to stop working around 60(or when medicare kicks in if it's still around). That's 24 years. We can possibly be up to 12 houses by then. More if we use some of our home income to buy more homes.

Homes today around here in that price range bring in around 1400/month rent today. using today's rent, 10 homes should bring in 168000 a year in today's money. appreciation should gross more 20 years from now I assume, market depending(once we have accumulated 10 or more).

Also, we both will have life insurance, so any kind of a disaster(I hope not of course) could be taken care of with this life insurance.

So my question is, is my logic sound? Is there anything big I am not thinking of? I worry also about homes neighborhoods possibly declining as well. I figure I can just keep watch on trends for them as time passes. if I don't like where a neighborhood is going, I can always sell the home in that bad area and put that money into a different one.

Would you guys buy all homes in various parts of one city? or maybe half in one, half in another? or more? ust in case one city faces hard times that makes it difficult to rent? Not sure how investors account for these market swings as well.

thanks, I know this is a lot, I just had to get my questions out there :)