All Forum Posts by: Ed L.

SFR is going to have much larger audience of potential purchasers. Average people are more likely to overpay based on emotional decisions.

Multifamily you are dealing almost exclusively with investors and for them/us it's all about the numbers... Sometimes they can be easier to work with if your product is priced right...

Long story short there are a multitude of factors that cannot be determined without more information..

First thing you need to do is confirm that rentals are profitable in your market. The Fed is rapidly re-inflating the housing bubble especially in higher demand coastal regions... Home prices and rental rates reflect upon one another but are not in lock step as people who bought homes pre bubble are able to rent for less than people that purchase at the peak of the bubble...

If you are currently renting I would probably go with the wife and purchase a SFR. Buy it right, fix up, and flip after 2 years tax free profits...

The numbers would have to be very compelling on a duplex/multifamily before I would move the wife in one..

I would run like crazy from that deal... Hate to be a bummer, but not every market has profitable price to rent ratios.. I'd say the vast majority- mine included are not..

The taxes and insurance alone are accounting for almost a third of your potential rental income.... That's not accounting for any debt carry, management fees, maintenance, vacancy, liability, litigation, etc, etc....

A negative cash flow multi family rental property is straight up indentured servitude. There's nothing exciting, glamorous, or rewarding about owning a house that someone else is living in.

Just put down less money on the purchase and then pay down the balance. Just make sure there isn't a prepayment penalty.

Either way I'd find a different bank.

There is no "right" time to get into RE investing from my perspective.

The right time to start investing in RE is when the right opportunity presents itself unto you. Your Job as a investor is to be constantly looking for said opportunity and to recognize it and capitalize on it.

You can set goals such as "Buy a house in the next 30 days" But don't make the mistake of buying a marginal deal because of the self imposed deadline.

Best of luck!

Wasn't that the guy that took the old carpet out of his apartment and crudely "installed" it in one of his flips?

It's hard to tell if Armando is just making tv or if he really is a genuine sleaze, but either way I'd take my $750 and spend it on pretty much anything else...

BP is already making you money by saving you money! Well worth the price you paid.

Just hate I was late to the party and couldn't have picked up more. One thing that's kinda strange to me is how so many people talk about how it's safer to invest in more expensive neighborhoods where home prices are higher and rents are higher. i.e. where homes cost $100,000 and rent for $1,300. vs $30,000 and rent for $650.

From my perspective I see the 75-125K price neighborhoods being much more volatile over the next 10 years+. In my area most neighborhoods in that price range are trending downwards as the homes age and the majority of the Owner Occupants lack the financial resources to properly maintain a home. These people should realistically be renters, but thanks to easy money policies they are home owners.. They are still basically renters but with no landlord to call when things need fixing.

I think in 10 years these B neighborhoods will be C, just as the C neighborhoods were A/B 10-20 years ago. I think the C neighborhoods will probably still be C and may revert back to B as the low prices attract investors.

Housing recovery sucks... I'm finding it harder and harder to find good rentals for under $30,000. Home prices are going up but rents seem to lag.

Sub 20K out in the country. Rents for $825, but is a pain having a house that's 20 min away. After purchasing I find out 1/2 the house was on the adjoining lot. Luckily it was vacant and only cost $5,000. From now on I'm getting surveys.

Sub 30K 2br 1ba homes in town. Rent for $750 each

Pre purchase & exterior paint.

I'll let someone from LA county try to answer your question, but I am curious how much a vacant lot cost if the homes are selling for that amount.

You can buy a nice new brick home in my area for approximately $100 per sq/ft. That's on a half acre lot.

I just can't imagine the construction cost are going to be 300% more there vs here, so I'm guessing the lots values must be highly inflated.

Here it's pretty cheap to set up a lot. Even if there is no access to city infrastructure. Power hookup is usually free if there is access within 1/4 a mile, Water well cost about 3K, Septic cost about 3K. There's your utilities for $6,000

A Forestry mulcher could clear a 10,000 sq/ft lot in about 3hrs so about $375.

A D5 dozer could level out a 10,000 sq/ft lot in a day. There's another $1,000

Concrete driveway for a lot that small maybe $5,000

So for $15,000 everything is done and ready to start building. That amount will probably cover your first permit in LA county lol...

I'm a big fan of December. Retail buyers are holiday shopping, and the banks seem to get more motivated to sell when the activity drops off.