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Author Topic: 1st rental property  (Read 3475 times)

Offline sandeja16

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1st rental property
« on: December 15, 2004, 11:23:27 am »
here is my situation, I have an equity backer that is willing to loan me the hard money for a downpayment at a very favorable rate, so I will be financing my first building 100%.  My problem is finding a place that is throwing off enough positive cash flow to make he, the bank and myself happy.  I am in south forida and the market is very high.  what would be the best plan of action to start out...multiple smaller units (quadplexes etc.) or one larger building??  Should I try a different location??   My plan is to have this as my full time job within the next 6 months to a year.

Thank you in advance for a response  

Offline Jeremy Steinert

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Re:1st rental property
« Reply #1 on: December 15, 2004, 05:09:37 pm »
You generally receive better returns on larger buildings.  The economies of scale are better and you have better negotiating power to reduce all of your expenses.  Also, you should focus on newer buildings.  Newer buildings (or modernized buildings) generally have lower vacancies and stronger, more consistent cashflow.

Offline tedjr

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Re:1st rental property
« Reply #2 on: December 15, 2004, 05:38:48 pm »
Howdy Sandeja 16:

I like junkers. They are cheaper to buy and cheaper to maintain. No pool, tennis courts, hike and bike trails. If they do not have running water they can get some when the rain comes in from the leaking roof. Fix nothing and they will  not expect you to fix anything. They will complain usually only at the first of the month when they pay the rent late about everything bit I still  do not fix anything. The only problem is when the govt sticks their nose in my business and makes me fix stuff and will not let me evict the bumbs for not paying the rent. You may guess that I am a slum lord from the 70's when the govt did not even bother landlords.

Times have changed since then  but I still like low end bread and butter properties. I can get 600 for a $30,000 duplex all day long and get Ok tenants.  I am buying a small 31 unit building for $154,000 where I will get about $6000 per month with some rehab. Not too bad but I will have some expenses too.



Ted P. Stokely Jr

San Antonio, Texas

 




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