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Home Buying Advice
02-08-2013, 01:10 PM
I'm no investor (unless its pussy and beer), so I'll ask you guys for advice. I have around $20K, and was thinking of investing in a house or condo. The questions I have initially are:
1. House or condo? Pros and cons.
2. Suggested areas?
3. Normal upkeep, taxes, ect.
4 Is it worth the investment?
5. Renting out?
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Home Buying Advice
02-08-2013, 01:30 PM
Quote: (02-08-2013 01:10 PM)Aliblahba Wrote:
I'm no investor (unless its pussy and beer), so I'll ask you guys for advice. I have around $20K, and was thinking of investing in a house or condo. The questions I have initially are:
1. House or condo? Pros and cons.
2. Suggested areas?
3. Normal upkeep, taxes, ect.
4 Is it worth the investment?
5. Renting out?
I will answer the bolded first : Depends what your goal is . If you are trying to make money in short term then it is not a good option , If you want to lock in for next 15 yrs then it is good.
Hear me Out, Put down $ 20,000 as down payment on a house/condo, get a 15 yr lease, that gives you the best rent and renters and let the suckers pay it off, You will see the fruit in 15 yrs after the house is paid off and not before. Rent should cover the Mortagage, Taxes, Upkeep etc etc. I doubt you will any money left after all these expenses.
Off course your number one worry would be to keep the house rented, Location , Location, Location....... You would know aorund Atlanata where are some Good School Districts, where Single Families want to move in, Houses closes to good Schools always stay rented.........
I wouldn't advice Student housing but have thought many times about buying a Duplex or a Fourplex and renting out 3 units and keeping the 4th for Shenanigans. If you do go Student housing , try to go after the Post Graduate Students, Contact Local Univ, Advertise the property at the Univ.
"You can not fake good kids" - Mike Pence
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02-08-2013, 03:13 PM
Location, location, location.
Only do it if you can afford it.
House it better then condo.
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02-08-2013, 03:19 PM
Don't sink all your eggs into one basket.
But if you do go that route a couple things to consider.
If buying a condo you give up a lot of rights. A lot of condo boards are ran like communist politburos. As for a return on a condo in a short amount of time is highly unlikely, unless substantial renovations take place. Even then it is iffy. I don't see the real estate market going up at all and if it does I don't think it will be going up higher than the rate of inflation.
With a house you are in more control of your destiny. You decide what work gets done and what doesn't. If you buy a house make sure all capital expenditures have already taken place. Roof, Furnance, windows, electrical, plumbing. That being said you would have to hunt for a really good deal because I don't see the housing market giving you a substantial return with no work put into the house.
I would perhaps look at equity lending in a market that you know well. You can easy achieve double digit returns on your money in one year. I did a data sheet on it. Just search equity lending.
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02-08-2013, 07:07 PM
If I could go back, I would buy a home with a big basement. I would make the basement my bachelor pad and rent out the rent of the home for income.
Tri-plex in Austin, TX?
I would do that.
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02-08-2013, 07:59 PM
Quote: (02-08-2013 03:13 PM)Giovonny Wrote:
Location, location, location.
Only do it if you can afford it.
House it better then condo.
Rentals in poor areas typically yield better results.
You want to know the only thing you can assume about a broken down old man? It's that he's a survivor.
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Home Buying Advice
02-08-2013, 08:08 PM
Are you looking to make capital gains or cash flow? If you live in the Atlanta area you have a lot of options.
You could buy a quadplex, a note, a mobile home and sell it on a note, or a rundown house and sell that on a note.
A year ago I bought a note from a guy in Austin (the property is a mobile home) for a little over 10k which will yield me a 20 percent return over 3 years. The best part about it is that I get a check once a month in the mail.
If you are seriously interested in REI, I suggest you read this thread. Lots of good information.
http://forumserver.twoplustwo.com/30/bus...ing-99351/
You want to know the only thing you can assume about a broken down old man? It's that he's a survivor.
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02-09-2013, 09:48 AM
That was a great link, thanks
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02-09-2013, 02:52 PM
Quote:Quote:
-my final advice is that you should wait to buy it in cash, as mortages are for suckers. that way if you decide to go spend 12 months in country x you could just rent it out and make a handsome profit.
Are you an investor ? Ever heard of OPM ? That statement makes me think you are giving advice and do not invest yourself.
Why would I put down my own money if I can use all of the banks money? I get to own the property and collect the cash flow. I have a property I bought last year that I financed 100% of it from a bank loan yet it NETS me $1500 a month.
With record low rates essentially making money free why on earth at this point in time would you use your own money ?
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02-09-2013, 03:05 PM
I've seen this mortgages are for suckers thing here before and just shake my head.
Especially with the current rates.
I was reading somewhere that rental rates are about 50% higher than a mortgage in Atlanta right now. Sounds like a good place to buy.
Shitloads of foreclosures there.
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Home Buying Advice
02-09-2013, 03:09 PM
Quote: (02-09-2013 03:05 PM)Hotwheels Wrote:
I've seen this mortgages are for suckers thing here before and just shake my head.
Especially with the current rates.
I was reading somewhere that rental rates are about 50% higher than a mortgage in Atlanta right now. Sounds like a good place to buy.
Shitloads of foreclosures there.
Rental rates have doubled in Atlanta due to foreclosures. It is a good time to buy, but I have reservations about it and leaving back overseas. This thread is solid with info, especially with the nuggets on investing.
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02-09-2013, 05:27 PM
Quote: (02-08-2013 10:00 PM)WestIndianArchie Wrote:
Quote: (02-08-2013 07:59 PM)renotime Wrote:
Quote: (02-08-2013 03:13 PM)Giovonny Wrote:
Location, location, location.
Only do it if you can afford it.
House it better then condo.
Rentals in poor areas typically yield better results.
Does that include the head aches that come with renting in poor areas?
Unless you live in a war zone, I wouldn't start there.
WIA
If you have a proper selection process you will find good tenants.
You buy an investment property in the ghetto you are typically going to get it at a bargain. Even better if it's already fully occupied.
If you buy at a great discount you can hire someone to manage the property for you.
I own a mobile home, which is considered a low income area. When I get home from AC there will be a check in the mail for me.
You want to know the only thing you can assume about a broken down old man? It's that he's a survivor.
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Home Buying Advice
02-09-2013, 05:36 PM
Quote: (02-09-2013 02:52 PM)BIGINJAPAN Wrote:
I have a property I bought last year that I financed 100% of it from a bank loan
how you get the bank to do that?
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02-09-2013, 05:44 PM
Quote: (02-09-2013 05:36 PM)guerrilla Wrote:
Quote: (02-09-2013 02:52 PM)BIGINJAPAN Wrote:
I have a property I bought last year that I financed 100% of it from a bank loan
how you get the bank to do that?
I told the bank I was paying more for the property than I actually was. I wrote another thread about how to go about it. Just search the mortgage bible. Works in Canada and it used to work in the states.
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02-09-2013, 05:44 PM
Quote: (02-09-2013 03:09 PM)Aliblahba Wrote:
Quote: (02-09-2013 03:05 PM)Hotwheels Wrote:
I've seen this mortgages are for suckers thing here before and just shake my head.
Especially with the current rates.
I was reading somewhere that rental rates are about 50% higher than a mortgage in Atlanta right now. Sounds like a good place to buy.
Shitloads of foreclosures there.
Rental rates have doubled in Atlanta due to foreclosures. It is a good time to buy, but I have reservations about it and leaving back overseas. This thread is solid with info, especially with the nuggets on investing.
Have you considered investing in notes? I bought a note last year, ended up working overseas and never had a problem with it.
You want to know the only thing you can assume about a broken down old man? It's that he's a survivor.