Jung Kim
If 20% down for an Investment Property, is REI really worth it?
19 January 2022 | 6 replies
I can't seem a large benefit of REI in a case where you have to put 20% down in an average market.Ex:20% on $500k move-in ready duplex where about $1k cash flow (ideal scenario)Assumptions - 6% housing appreciation, Stock 6% appreciation (conservative estimates)Profit- House appreciation 6%/year- Mortgage paydown and it's 6% appreciation/year- Cashflow invested back into mortgage paydown+/- tax deductionsExpense- interest payment, taxes, home insurance, maintenance ~ roughly 1k a/f deduction (conservative est, probably alot more)VSOpportunity Cost- Down payment 20% = 100k in mutual fund 6% return/yr- $1k/month expenses that could be contributed to mutual fundYes there are still alot of variables- housing and stock appreciation/return will vary depending on location/time/stock- did not exactly calculate out the tax deductions / expenses but made a conservative estimate in favor of REI- did not include time and fees dealing with REI transactions vs just working a few more hours at my jobWhat i'm seeing is that in a scenario where someone will not be building sweat equity or finding a crazy discounted deal on a property and going through a conventional 20% in an "average market", the argument doesn't seem as strong for REI vs mutual funds/stock - they seem to be pretty close if you take into account the variables mentioned above.
Alex Keay
1st time post - New Member!
14 January 2022 | 12 replies
I have thought about that and it would be ideal.
Steph S.
Getting "Serious" About REI in 2022
11 January 2022 | 4 replies
I’d skip paying for any boot camps or anything like that, just find a solid lender and agent (ideally who both invest themselves), and learn by doing.
Ethan Griffel
Working with appraisers
7 January 2022 | 1 reply
On a similar note, the house will be rented at the time of appraisal, ideally the renter will be keeping it in good shape and clean but has anyone used any specific tips in the past to ensure the house is in the best condition possible for the appraisal?
Rami Holzman
Can you rent a property from your LLC?
13 January 2022 | 9 replies
Hi all, I'm hoping to move to the US hopefully this year (Tampa) and would ideally like to get into a house hack/my own property straight away as rent is rather expensive.
Vladut Bujoreanu
Handing over portfolio to PM, how to prevent unnecessary charges
23 January 2022 | 3 replies
Ask for pics/video of before and then after the repair.
William Morales
How I think finding boots on the ground is not that easy.
23 January 2022 | 12 replies
After that, I always call the listing agent in order to ask them a bunch of questions and only then do I decide if it is worth while driving out to that property and shooting a detailed video for the investor.
Leonard Weiner
Real Estate Syndicates for 1031 Exchange
13 January 2022 | 9 replies
Here is a YouTube video where Rob explains what I think you're looking for.
Cody Moses
Beginner Wholesaling finding cash buyer
8 January 2022 | 2 replies
I watched Jerry Nortons video about his 10k club but honestly it sounds like a scam and I would rather figure out how to find cash buyers a different way.
Patrick Orah
How to negotiate terms with a property management company?
23 January 2022 | 28 replies
Ideally I’d like to have about 50 units when I hand off management or build my own business of management.