Smashmout you live in a fantasy world. You’re not buying 10 properties in one year.
Counter tops, Landscaping and re-sealed the drive way
$6500 for countertops, landscaping and resealing a driveway? :shocked That’s a lot of money or a do it yourself project. So you’ve spent $6500. Where did it come from? Your pocket or the rental income?
ok. thanks for setting me straight. LOL You believe it can’t be done, so no one else can do it?
you’ve already proven that your fantasy $450/month “cashflow” was just cut down to $208/month due to OPERATING EXPENSES which is what everyone has been telling you about. Did you pay for your car’s wear and tear and gasoline (to go to and from the store and rental property) with the savings or out of your own pocket? That’s also an operating expense. That’s reality.
Do what you want, but don’t be a hater on others. Take off the blinders and see what is possible.
Smash mouth. Your’re kinda what I was looking for from the beginning. I believe anything is possible. How would you do it? How can I buy one more property (in CT) with little to no money down and follow the 50/50 rule. I’m looking for a 2-4 family. Excellent credit, Good Income.
I’ve heard that over and over again and it’s starting to sink in. But where does one find properties that are cheap enough to provide that kind of ratio? I don’t doubt the math, or that getting property at that price is possible. I just have no idea how to go about doing that.
Normally this is a situation where the seller is very motivated, the property is in need of rehab, the tenants are a nightmare ( a.k.a propertymanager’s “Rat’s Nest). As Gilda Radner would say on the old SNL show " It always something”. The bottom line is that these are very motivated sellers. Sometimes you come across a property that’s just been poorly managed. Just keep your eyes and ears open. Tell everyone you know you’re a RE investor and you buy properties. Mail carriers are a suprising resource. They know everyone’s business!
I would have never thought to ask one! Thanks for the tip!
The excellent credit and good income (assuming from a day job) is more than what most have. So that’s a good start. I’m only familiar with my area as far as housing prices go. But take a look in your surrounding areas. Maybe a 30mile radius. More than likely you will find areas that have had their bubbles burst. Concentrate on those areas and learn the market very well. Join your local REI club. There you will find mostly newbies, but you will also find successful investors. You will aslo find some landlords who are getting killed because they don’t know how to manage properties. They might want to unload their properties at any cost. Network at the meetings. At first you might feel frustrated…like there’s no way you’ll find a house that that fits the 50% rule. Then, when you keep at it and meet as many people that you can, and are an expert in your market…you’ll find some deals. Maybe one with owner financing available (no money down, they just want to unload the property). Or find a private lender and then refi once you close the deal. You’ll need to develop a good relationship with your bank.
Having said that, you have to keep in mind that these are probably not going to be really nice houses that you’d live in personally. Just remember that you don’t have to live there.
I could go on and on… but I have to leave now. I highly recommend purchasing Mike’s book…1 minute to rental property riches. I am in no way affiliated with him or his book or website. It just helped me tremendously in getting started. Now the world is my playground and I’m loving every minute of it!
Good luck with everything.
Local REI Club. Interesting. Good tip.
Hey Civitar. There are a TON of multifams in Hartford, CT. I’ve been through Simsbury and have a friend in Canton, CT. Hartford may be way out of your “comfort zone” but it looks like a lot of opportunity down there. Hire a Property manager to take the headaches away.
Get in cozy with a local bank’s loss mitigation department. This can be an amazing resource. I have bought my last 4 properties this way. Once you buy one, they will call you with all the deals that never sniff the MLS or realtor representation. That is how you get deals. I bought a 1500 sq foot row house at the end of last year and closed in mid January for 29K. Put 5K in it and got a full price offer today of 57K with $2600 back at closing. After fees and even capital gains taxes I should clear 10K at least for very little work. Just bought a 5 unit for 22K, bought a 2000 sq ft house for 15K in January, finishing the outside rehab now and plan to put on the market for 95K. Just closed on a house I bought for $17,500 and closed five months later at full price offer of 87K. I bought all these directly from the bank. I love this market. I strictly focus on first time home buyers. If you offer value for the money and they don’t have to sell another house, there are buyers, even in this market. I will continue this strategy at it is bulletproof in my neck of the woods.
Loss Mitigation Department. Now where getting somewhere. Thanks
While I agree with getting cozy with the local banks. Many local properties go into foreclosure with banks out of the area. You need to go to City Hall/courthouse and get cozy with the depts. that handle foreclosures. Go there every day. Find out who you need to talk to who handles the foreclosures. It’s all public info. The lender is listed in the info. You might even want to subscribe to a site like RealtTrac.com that gives you that info. I don’t know how current they are, but you can always test it out against your own efforts. I think the key here is to find properties BEFORE they hit the MLS. Why pay more than you have to?
It sounds like you are in a nice area of Connecticutt with attractive units.
Why not try for higher rent by furnishing 1 unit?
Check out your local hotels–who is staying there? Are they all one-nighters or do they have long-term workers? What are the rates per night?
Your rent needs to be less than a good hotel/month but certainly higher than what you’re getting now. Calculate in utilities including high-speed internet. Figure in vacancy and cleaning. Re-cycle your extra furniture into the unit. Put an ad in the paper to test the local market.
You should be able to get a high-quality tenant who would otherwise have a suite at the local Marriott. But you can give him a furnished kitchen, washer, dryer, a home away from home.
This tenant may stay only 3 months so be ready to clean and turn that unit over to a new guest as quickly as possible. A Furnishedowner.