i took a course 3 years ago and thats what i’ve heard.
well, this guy emailed me saying that he wants to sell a town house for 157k. i checked the general area, the average price sold for homes were around 350k in the past 6 months.
my strategies right now is either buy super cheap and make a rental property or do a wholesale. anything different about town houses?
TH is nothing different from SFH or even a condo. It has walls, a roof, maintance and a tenant.
Question you need to ask the investor is why is he selling? What is his motivation to sell for 50cents on the dollar?
Does it require a complete or partial rehab and how much? Does it have a HOA and how much (for expenses)? Does insurance cover roof and exterior? or do you have to get it on your own? Is the HOA in an assessment frenzy and are any assessments coming up? When was the last time the complete complex was freshened up or does it look like it is due???
BTW…why would Donald Trump say start with townhouses. NYC really does not have them. They are called Brookstones in NYC, Brooklyn and Bronx and are very expensive. He started with commeircal and pretty much stayed there. People forget, he is not self made. He father taught him the biz.
Real estate is local. In south Florida and New York townhouses are fine. In Houston you will choke on a townhouse. In Virginia you can make money on a house with no garage, in Houston it won’t move at all. You need to find out what works where you are and do that. The key is that you don’t want to reinvent the wheel. Do what others are doing and making money. For example in Houston you want to buy a 3 bedroom 2 dath 2 garage between 1500 and 2000 sqft built around 1980 that you can buy between $50k and $80k with no more than $10k fix up in a neighborhood that rents for $975/month to $1100/month. That house will rent in 2 weeks or less and cash flow around $200/month for 2 to 5 years trouble free.
I don’t know what works were you are…find out and do it.
Any type of property can make money if bought right. Let me say it again just to make sure we’re clear…IF BOUGHT RIGHT. As Bluemoon said some properties don’t typically work as well in some areas as they do in other areas, figuring out what the norm is will help you more easily find postive cashflow properties. This doesn’t mean that townhouses are all bad in an area that most won’t work so don’t totally skip them, you might find a gem.
thats exactly what i thought. i mean, lmao. still, all is not lost! i want to see if the 4 bedrooms can really be rented for that high, and the area demand. condo fee includes the usual ultility cost, and the service provided are quite good. lol… or at least i would like to believe so. i mean, i wouldnt mind paying 500$ in toronto if i can get sauna and pool…blah blah anyways
Here in Kitchener a townhouse for that price would have a condo fee of about $200-250/month. What’s with Toronto and crazy condo fees?! I’ve seen $60k 1 bed condo apartments with $500+ condo fees in crappy areas like Jane. I guess the high condo fees pay for washing down the common areas with spermicide after the crack whores are through with them
My very first deal consisted of lease purchasing a 3/2 rowhouse and renting it to the existing tenants. It went very smooth. They paid on time and didn’t trash the place. About 6 months later they moved and were very cooperative in getting another tenant in. 12 months later that tenant moved. I did a bit of clean-up and paint and sold it for a 30% profit.
Overall my experience has been that 3 bedroom townhouses rent to own just as easily as semi’s and detached homes. But that’s here in the K-W area.