Is there such a thing as too soon to buy another property? I have the duplex fully rented and all is well there for now. I ran across a SFH its a 3/1 with 3 car garage on a double lot. The other lot at some point could be surveyed out and sold at a later date. It meets the 50% and 2% rules. The numbers make sense; but I wonder if it is too soon?
Additionally, this is an up and coming area but crime (mostly theft) is still sort of high. There are new houses being built all around. Do you invest in these areas? Additionally how to do protect the house as you are rehabing?
hthompson001 - I had the same question when I decided to invest in rentals few weeks ago. However after some thought I decided that any time is a good time to invest in real estate. And it is better to start doing it today, than tomorrow. As long as you find a good deal that will cash flow, it is a good investment. At least this is how I am thinking.
Now you made me jealous… :O) It seems you found a great opportunity. And in this case you even have an opportunity for better returns in the future when you split the lots… If you are sure about the numbers I would do it… And even if you don’t want to hold another property, I am sure there are lots of investors out there that would be dying for a deal like this. You could bird-dog or wholesale it to them… :O)
And it even seems you got it in an area with potential… Now I am really jealous… :O)
There were several discussions about this. You may want to search the forum to read the original posts. Some of the things I recall reading:
1 - don’t leave expensive material/tools in the property.
2 - lock the doors.
3 - let someone know where you are and how long are you planning to be there. Call that person, or ask her to call you, on a regular basis to see if everything is fine.
4 - carry a cell phone.
5 - introduce yourself to the neighboors. Leave your card so they can call you if something happens. Be nice to them - maybe bring some dognuts or cookies when you go introduce yourself to them… :O)
6 - I believe someone even mentioned that he would leave a big gun, mattress, some clothes, and other utensils to give someone else the impression that there is someone sleeping there at night…
Good luck! Have a nice Sunday!
Radio Shack has an inexpensive alarm ($100 or so). You can intsall it yourself and I think you can have connected to the police dept. and your cell ohone. I can’t remember the name of it, but its a good selling feature for selling or renting the home.
Do you have a good income and some reserves in case something comes up? More rentals equals more risk & potential reward. You’ll have another property that might need some repairs. If you’re ready for that financially and you can afford to do the deal…why not?
If you’re worried about theft from a rehab, here’s my recommendation:
Only take over the tools and supplies you need to complete a day’s worth of projects. At the end of the day, load up what you have in your truck and take it home. Have your tools & supplies grouped by type. Keep your painting stuff together, your plumbing stuff, electrical, etc. If you put them in boxes or 5 gal buckets, they’ll be easy to transport. Don’t leave anything there to tempt anyone. Make sure you keep window coverings up. Even if they’re crappy blinds you’re gonna replace, keep them in the windows. If you want to keep people guessing, buy a couple cheap lamp timers and leave a couple lamps over there to be on for a couple hours of an evening and then shut off.
I went to the property at night and it wasn’t as bad as I had originally thought. I put a contract on the house this morning. I’m going to put up flood lights with motion detectors (I have some in my garage that I’m not using) and go with the lamp timers. Wish me luck!!!
Now the thieves don’t have to bring a FLASHLIGHT!! Now all you need is to put a moving truck in the driveway so tey can load the loot easier!! :biggrin. Just kidding man, I couldn’t resist. But seriously, you can pick up some cheap DYI alarms for windows and doors. Some just make a lot of noise but it’s all you need. Unless you have “Neighborhood Watch”. You know, the ones where someone robs your house while the neighborhood watches…
;D {laughing until I cry}
The house does have an alarm system…forgot to mention that I noticed it when I went back.
It’s never too soon! I went from ZERO houses, to about $900K worth of SFHs in 10 months. All of them are rented and I’m currently looking for new deals. And I also, have a full time job.
However, I did troll this forum for about 6 months before I made a move. Learn everything you can and apply it. Seriously, if you create a business plan, then you can repeat the strategy over and over again.
Hope that helps.
Exo