Real Estate Pro - answering questions

>i am not a licensed agent, i don't want to be.

I call bullshit.

You aren't a real estate investor. Having direct access to MLS is enormously beneficial. The only ones that aren't licensed realtors are fucking idiots. You save thousands on closing costs, and can run bots to scrape information off of MLS the minute it's posted.

>4k a month
>million dollar house

That doesn't seem worthwhile at all. You could probably use it to offset the costs of holding the house, but that doesn't seem profitable at all, unless you are talking about a tiny ass house on an extremely expensive plot of land.

What city would you recommend buying in today?

With 20-25% down, what roi are you seeing in that city?

What do you think of rust belt cities like Detroit, Cleveland, etc.?

back
the hour was up retread
not familiar with Aussie Laws, but i'm sure a good lawyer can set you up. in the US, we have legal entities called LLC (limited liability company), i presume there's something similar where you live. - if those properties were here and i were the owner: i would rent them out to well qualified tenants. the phantom income should be enough to cover any taxes the lawyer can't negate for you.
phantom income: tax deductions based on costs and assumed depreciation.

To clarify, cities in the US only.

i have one basically "on staff", you dolt. i don't want to have to deal with arm's-length crap, nor do i want to be required to do the so-called 'ongoing education'.

buy anywhere at anytime, depends on what you are trying to do. fix n flip? hold as rental? commercial? or just a personal residence? vacation home?

Is there money to be had in selling US real estate overseas? Specifically, in Asia.

When's the current bubble gonna pop? How bad will it be?

Is flip houses worth getting into? Or is it just gambling?

Buy and hold, long term residential rental

You can be profitable as a landlord anywhere, if you can find properties that suit the market. Same with flipping. Find properties to fix and/or convert to what the market currently wants.

You just have to understand the market in a given area.

quite, i was just reading some about asian investors buying more US property over the past years and each year it rises exponentially.

when the market is saturated. always buy. ride the waves.

the rule of thumb is a 2% cap rate. higher if u can get it. these exist all over the US right now.
personally, i buy with little to no money down as much as possible and i never agree to paying more than 50% of what i expect to get at retail when paying cash.

Some areas don't even really have a bubble. West coast is going to be spectacular. Vancouver is already starting to flounder now that they are taxing foreign income.

How did you start? What would be your tips for someone who wants to start learning to be a real estate advisor.

>With 20-25% down, what roi are you seeing in that city?
>What do you think of rust belt cities like Detroit, Cleveland, etc.?
more in depth: 20% down will get you anything you want if you have good credit. i would suggest going for mid tier homes in mid sized midwest towns where you can scoop up properties for 20k-50k that would retail on a good day for 30k-80k. and rent them out at 400-1400/mo depending on area.

my view on detroit is the long game. if you can scoop up some shit properties for

> Buy when the market is saturated

dude waht.

I wanted to learn some stuff in this thread, but I'm out. My dad was a commercial real estate investor for 30 years. Buying land or homes when the market is red hot is rock-to-the-head stupid.

Bye.

I assume you're american? I'm a bong but maybe you can give me a few hints.

I bought a run-down house and renovated it. I found that I was able to do it for just under £15,000 to a very high standard, and I'm expecting to sell for double what I bought it for for a big profit, around £100k clean profit

I can do all the trades myself and have a proficiency for getting great deals on all the materials. I want to do this over and over again and I believe I can consistently make far more profit than the other businesses who are doing this locally.

My problem is finance. How do you go about getting finance, or finding an investor to stump up the cash for the actual property? How do you find these people and convince them I'm not going to scam them? Is this a done thing or does everyone use mortgages. Mortgages are too risky and bureaucratic here since I need the money up front to buy the properties at auction.

>real estate advisor.
define your term?

>How did you start?
i went to miami university in 2005 and took business and also real estate licensing courses.
i watched the market crash just as i was trying to enter it. no one was bringing on new agents. i went to truck driving. while truck driving i listened to podcast, cd's etc on how to little/no moeny down.

set up my website and advertising by phone/internet when not driving.

sellers call, i buy. buyers/renters call i sell/rent. not driving anymore.

that's not what i said.
when will the bubble pop? when the market is saturated.
but always buy. don't buy at inflated prices though.
google "hard money lenders"
also, try to get registered with the state as a legit business. have lawyers draw up contracts. partner with other investors who have $.

>a 2% cap rate
>2%

OP are you living in a negative interest rate country?

Can't speak for britbong laws, but I work with a relatively local credit union, and they broker most of my mortgages. Like many other things, networking is very beneficial.

Getting started can really suck if you don't have liquid cash reserves. I personally deal with a lot of for sale by owner properties who are fucking crazy, and they just want cash in hand asap. There's a lot of creative ways to 'have' short term cash against assets you own, but the legality of things varies from location to location.

Worst case, you are looking at hard money lenders, which is expensive as fuck. Sometimes it's worth it though, and if you have no other alternatives, you just have to eat the cost.

Also, see a lawyer, particularly concerning taxes. Real estate in general has some clusterfucky tax code stuff, and my understanding is that Europe is particularly silly.

US is pretty much there, almost at negative interest. 5 year CDs only paying 1.5-2.5% at most banks, but the annual cost of living increases at 7-9%

2% of the purchase/retail price should be the monthly rents collected. = it pays for itself in 50 months.

Rentals are done per month.

Better properties generate 2% of their value in rent every month, or at least close to it. That's not pure profit though. Mortgages, taxes, maintenance, etc all eat into that.

looks like we have another investor in the mix, welcome, user!

Kind of curious what your experience with flippers is.

Personally, if I even smell a flipper I just assume I have to redo fucking everything. There's a couple of independent contractors I buy a few properties from every year, who know what I like, and actually do good work, but god damn flippers are a cancer in this industry.

You can't even properly sue the clever ones because they spin up LLCs for every property they flip. You can sue them, win, and manage to collect, but it's an uphill battle.

who the fuck calculates cap rate based on monthly rent?

>looks like we have another investor in the mix, welcome, user!

oh god this thread is just making me cringe...

Thanks

I will have around 140k in liquid cash soon. I don't want to buy a 140k house and sell it for 250k though. I want to buy a 300k house, add an extension and sell it for 600k. Margin basically.

What kind of % would a 'hard money lender' expect? I could live with 10% if it gave me flexibility. Bank mortgages here are 2% to 5% but they rarely lend for my kind of purpose.

It just seems like a great deal for someone to loan me 200k and get 5% on their investment in under a year. Worst case for them is that they get their asset back (the property). Where do I begin with networking and finding these people? I don't know any rich people. Bank rates are shit so surely there are rich people who want to lend. I'm not a total autist and I think I could persuade an investor.

flippers, if they are buying low and fixing everything and selling at retail, i don't deal with them as i never pay retail. but i, at times, will flip a place. wholesalers are 50/50.
it's just the standard metric of whether a deal is worth pursuing.
in the US, 12-14% usually. maybe upto 20%
facebook business page.
most private lenders will want 7% at minimum, but if you want to secure some cash fast offer up to 15%

I guess I'm a 'flipper'. Do they often leave you with properties full of problems? How do I build a reputation with people like yourself? I don't cut corners.

Thanks I'm searching now. Who typically draws up the contract and pays for the lawyers? Both?

It's actually extremely common in real estate. I keep things in terms of yearly on my bookkeeping side, but since rent is payed monthly, people gravitate towards breaking things down into monthly pieces.

It's also convenient for making ballpark estimations on the fly. You just assume 10 good months in a year on average, and move decimal points around. If a property still looks good assuming conditions that bad, it's probably worthwhile to look at it further.

>Thanks I'm searching now. Who typically draws up the contract and pays for the lawyers? Both?
as the investor/flipper, you have your lawyer draw up the contract to your desires. - then you shop around for someone willing to sign it.
depending on your market, you may have the other party pay for the legal fees. but ask your local lawyer what is common practice there.
if you are making a nice chunk of cash off the deal, just eat it, so things are smooth and you get good "word of mouth".

protip:
if i'm getting a nice large lump sum, i will pay for all the incidentals. WDO reports, title search, recording fees, lawyer, etc... based on the word of the seller. but there's a clause that if they told me wrong and thus i have to back out, they are on the hook for all these.

when selling, usually the buyer has access to a ton of cash, so i don't mind having them pay for it all.

but certain circumstances such as a double close and a big enough lump sum, i may eat it on both ends just to get it done.

try not to hold up a 6 figure deal over a 3 figure cost.

>How do I build a reputation with people like yourself? I don't cut corners.

Depends on who you sell to a bit.

In general, a real estate investor is probably going to be willing to spend a bit beyond what he normally wants to if you've sold him a few good properties, and have a good working relationship with him. Don't let him abuse you, but be willing to slap a builder's warranty on some types of work. Don't assume that it's a mutual back scratching scenario. Your investor 'buddy' certainly wants to cultivate a relationship, but he still wants the first pickings of whatever you are offering, so he might not tell anyone else about you. You can both benefit, but don't assume the best in people.

The contractors I work with come to me because we have a mutual understanding that we want things done quickly, and without bullshit. Either party can walk away, and that's just business. I'll happily throw a few extra grand at a house to get it closer to 'market rates' if I can put it up for rent instantly. Likewise, he's happy to sell it to me for a bit less to cut out the realtors, their fees, and his miscellaneous holding costs. That's mutually beneficial.

When selling to individuals just looking for a home, a lot of their wants are different. An investor wants certain things heavily built, and may care less about aesthetics. Homeowners will still appreciate a warranty, but won't be as picky about random shit like the brand of paint you used. They are more likely to gossip about how good you were to them because they don't gain anything by failing to do so, and are looking to help friends and family. Word of mouth is extremely powerful, and there's no good way to just manufacture that. Biggest thing is just being civil, and explaining things simply. Don't lecture them for hours on details. Just say that you repaired the roof and the attic has brand new insulation, and leave it at that. If they walk, they walk. Don't hound people. A good house sells itself.

>try not to hold up a 6 figure deal over a 3 figure cost.

It constantly blows my mind how cheap people are over dumb shit.

I've had several people steal the locks and doorknobs off of all the doors to the place on the day of closing, then try to strong arm it through. Had one woman steal all the lightbulbs while doing a final walkthrough. Just... why. You're closing on a 300,000 transaction, and you are going to try and Jew 6 dollars in used lightbulbs out of me? And you expect me not only to accept it without invoking the 5 figure penalties in our contract, but to not demand a complete followup inspection to make sure you didn't run off with anything else before properly closing?

I'll gladly throw in a new kitchen faucet or some other stupid irrelevance if it makes someone happy, but holy fuck some people are so petty about winning in every conceivable way.

i feel ya. some people just suck.

i had a sweet 6 plex lined up. was going to pay 24k cash. meant to rent units at 400/mo each.
would have paid for itself in 10 months. then bring in 2400/mo for life.

but the seller was such a pain. call or email 5 times in a day. demanding i hurry up with my inspection process. huffing and puffing cuz it took 3 weeks to pull the cash out of 401k.

i just dropped her ass. she threatened to sue. ha ha. told her to read her contract. keep the earnest money, i dont want to deal with you at all.

it later sold for 11k and now that guy is trying to get 99k. i'll get it for a good price sooner or later.

Not the craziest, but I think the dumbest one I've personally run into was the person who got the place under contract, then cut out the water heater. Was one of those ultra high end on demand systems. Nice unit, but it was part of the house.

Thing is... he didn't shut the water off when he did that. 3/4 inch pipe. Basement was filled 5 feet deep with water, and he had city water to boot. Besides the building being condemned for mold, he racked up at least 10-15 thousand on his water bill, and shorted out a transformer knocking out power to a dozen buildings on his street, meaning several utility companies, not just water, were more than a little pissed off.

Yeah...Noped the fuck out of that one.

Almost snagged the property a year later at a tax auction, but they weren't letting anyone properly look at it, and I'll be fucked if I buy a property for the money it went for when there's a good chance the foundation has been washed out.

can't imagine how this board is full of people wanting free advice on how to get rich. yet, when free help is offered, it's a ghost town.
helped a kid from indianapolis get into wholesaling. he's done over 100 deals since jan 2015 @ about $5k/pop. kid is doing quite well. has wife and kid and another on the way. tried to get him into investing, but he's kind of a 1-trick pony.

Real estate is a long game, and the barriers to entry if you want to play the fast flipping game are substantial.

Both require discipline, and a lack of emotional investment.

Where do I look for a multi unit apartment complex?

I have about ~$130K in cash, what's the most expensive I could buy?

Might be smarter to try buying a couple small single family homes to learn your immediate market a bit better. Generally they aren't as tightly regulated as complexes.

>to learn your market a bit better
What do you mean by this? Could you list the benefits of single family homes as opposed to a multi unit complex?

>Learn your market.

What sells? 2 bedroom? 3 bedroom? What kind of kitchen? What square footage? What locations? School districts? Major places of employment?

>benefits

Regulations/codes aren't as tight. Many states require you to have a permanent employee living on site for larger complexes. On top of that, inspectors will often overlook stupid shit on homes, but aren't as forgiving on complexes.

If it's a single unit, you can just write all the utilities in to be covered by the tenant. Most locations don't let you mix utilities, so YOU have to pay for them, which means extra math and risk if you fuck up the extra rent.

Managing serious pest infestations is a lot easier on a single house because you can just take it out off the market for a month or two and tent it.

If you get a stone cold crazy tenant, they won't be complaining about other tenants making noise because there aren't any, and if they are the ones making noise, the neighbors just call the cops on them. You don't have to get involved except to brush them off, or evict them if they are a serious nuisance.

Modest SFH tend to be slightly higher end. That attracts slightly better off tenants. Besides the money, the psychology is a bit different. Generally they aren't as batshit insane, and because the requirements are a bit higher, screening is more straightforward. Less section 8, and other welfare queens. Fewer druggies. Fewer 'disturbed youth' trashing shit. More small families, or single college grads looking for quiet.

Biggest thing is, it's a small nibble instead of a meaty bite. You're gonna fuck up a few times along the way. You aren't going to shoot yourself in the foot by starting off cautiously. You can get your foot in the door with houses in the 25-50k range, and figure shit out. If you fuck up, you're out a bit. Generally, you can still recover something with a flip, and do so quickly. Apartment complexes are not generally hot ticket items, meaning houses are more liquid.

It's because the vast majority of anons here can't afford real estate, and the ones that can already own it.
Do you have a decent amount of knowledge re areas outside your own? I'd ask for your input in mine, were that the case.

>Do you have a decent amount of knowledge re areas outside your own?

More than most of my colleagues, but that isn't exactly saying much. Most of them are completely tech illiterate, and couldn't change anything about how they perceive the world, even if they wanted to.

The same is true in most industries.

do you want to know how much cash i put down on my first acquisition?
$25.00 then $175/mo for ~57 months = $10k
it takes practically 0 down to get into real estate, if you know what you are doing/are willing to learn.
>Do you have a decent amount of knowledge re areas outside your own? I'd ask for your input in mine, were that the case.
not to brag, but i am classified as a genius. i am in housing because that is where the money is. but i have many intellectual pursuits. and i'm always absorbing business related knowledge.
so what's your question?

>not to brag, but i am classified as a genius
Sorry, your time is up.

>not to brag, but i am classified as a genius
Not to mention he's humble too!

truth is truth. mock me if you will, idc.

Is there any money to be made by buying houses in Niggerville and renting it under section 8?

yes. you can charge full market rate and hud will pay. counterintuitively, it's best if the tenant has zero income, that way hud pays 100% (try including utilities if possible). that way you don't have to evict over nonpayment. 2nd best to rent to elderly/handicapped on social security/disability with no family.

legally you can't discriminate based on family status, but you can say you discriminate on bad breath, bad attitude, your intuition, etc...

Plenty, but it's high risk, and some regional HUD programs are downright cunts, making it even riskier.

You want to keep section 8 tenants at an arm's length, and be prepared to have a very good eviction attorney on hand for when they move their drug dealer boyfriend in. They can lose their benefits by subletting, but you need to approach them from a position of power, because they don't respect anything but fear.

Interesting. I thought of this because I met a carpenter who only does work for some out-of-state lawyer that owns a bunch of apartment buildings. Half are section 8, half are regular apartments. When the tenants in section 8 housing slightly damage something (they do things like fuck up faucets all the time apparently), he goes in, replaces the entire thing, bills the government for a new one, keeps the slightly-damaged item, fixes it, then uses it in the other apartments. Seems like a good scam, but I don't have the money to go that big so was wondering about just SFHs.

I've got my eye on a couple that are just on the edge of Niggerville in an area of the city that is currently suffering from White Flight, so the prices in that area are really low right now.

I've thought of that. Had the idea to put some guys in a security guard outfit to give him a policeish look when serving eviction notices. I'm not sure how good of an idea that is.

>replaces the entire thing, bills the government for a new one, keeps the slightly-damaged item, fixes it, then uses it in the other apartments.

I have literally never worked with a HUD program that was willing to cover anything besides rent outside of extremely specialized circumstances, like when their agents tried to extort me for bribes.

actual evictions are usually served by county sherrif's personnel, so no need. unless you are in a weird state.

SFH works fine for this. but the faucet story is so small $ it's barely worth it. your money comes from rent.

i'm seeing some good deals on large complexes. like one i saw today 27 units for 290k.

19 trailer - trailer park 180k

this is one of those times i wish i were liquid. i'd grab them both.

PCM rent gross x 12 x 100 / purchase price = caprate
- expenses = ROI

Its an international basic formula

Serves me right for listening to the wild tales of some random fuckbag then. It would be some sort of fraud anyway though.

I dunno about trailer parks, but I've been watching an RV park near me. Prices on their website are $1200 a month plus utilities and it's always almost full. Seemed to be a lot of old people. The highest lot number I saw was 90ish too. I tried talking to the manager about what the costs and stuff are, but I was very politely told to fuck off when it was clear I wasn't interested in renting. They provide a lot of amenities and it's in the better part of the city, but it looks to be doing pretty good. High startup cost though from what I can gather; the sewer system up to city codes can run into the millions alone.

>'hard money lender'
No Cash down 25%
50% apx cash down meaning your $140k turns into $300k liquid then 5-9% depending on other collateral.
Keep in mind most hard money lenders are lawyers or employ lawyers there terms if you screw up are very very predatory.

I'm in real estate myself in Australia. Post here often. Sometimes with property threads its just good to lurk, because the codes and bylaws are all different everywhere even between states but you can glean really good ideas and approaches from seeing how foreign investors and sellers navigate their own restrictions etc.

Also there was an american timeshare salesmen who used to make threads here, he hasn't in ages though, his sales techniques threads were absolute gold, the guy was a fucking gun. Such threads are just great to lurk in

colleague of mine has most of a subdivision full of 4/2 dups.he is in his 60s. a xanax addict stripper tenant didn't have the $ for rent. she gave herself instead. he wound up with gonorrhea, and then his wife left him and took half his properties.

protip: NEVER accept 'favors' in lieu of rent.

maybe accept hard assets in a pinch. make sure they are worth more than the rent though.

I'm not saying it's impossible, it's just that most HUD programs are a bitch to work with. Section 8 tenants have far more protections than normal tenants, and many HUD agents will deliberately try to trip you up and drag things out so the tenants can just squat forever.

I don't pretend to understand it. Section 8 has a huge wait list, so why wouldn't they want to get rid of the trash and get good people on it? It just baffles me that people can be that stupid. Some of the higher ups seem to want to keep the silver spoon running as long as possible, but that's government and unions for you.

Credit where credit is due, they do work extremely diligently to ensure that nothing gets done.

>Keep in mind most hard money lenders are lawyers or employ lawyers there terms if you screw up are very very predatory.

Yeah, you really need to watch out for this. Lot of times they will try to slip in shit that isn't even legal, just so that they have more stuff to throw at you if it goes to court.

right on. would like to lurk one.
i lack charisma and sales ability. so i do everything i can to make the stuff sell itself.
i've been looking for a good sales person, but no luck so far.

I was doing some work for some developers in Australia.
They did a mixed use estate that comprised of about 500 homes, a private international school, retail, public library, all on this green designed water catchment plan which utilised underground spring water and won a bunch of public awards for design etc.
The entire development was around the $200mill mark.
Anyway it was financed through a deal with a national packaging/recycling magnate. They fucked up in a small way financially and the magnate scooped up the entire nearly completed project within 1 month!

His sales threads were serious quality. Been 6-12 months since Ive seen one here.

>maybe accept hard assets in a pinch.

I wouldn't even do that, but if you insist on doing it, don't accept anything that could be provably stolen. Seen tenants trying to pay with stolen motorcycles. Tenant showed my property manager a garage full of bikes. I told my PM no, of course not, money only, and then sat on the info for a few months before tipping the cops off and evicting him when I could more easily get tenants.

Being a fence for hot goods is not a position you ever want to be in when it comes to tenant/landlord relationships. The sort of shithead who will steal will throw you under the buss if he even thinks it might help him, or will hurt you. That makes evictions complicated, and can cost you thousands on criminal defense fees.

Let them fence their shit to someone else and give you the clean cash.

good morning all. it's a brand new day. are you making money off your land yet?

How do you handle key control?

I gravitate towards slightly higher end locks, both because they don't break, and because I can control the keys. There's no sense going all out with 300 dollar abloy sets, despite how wonderful they are, since a fancy lock doesn't provide additional security if there's unsecured windows, or the door can be ripped open with a sledge, but I've found key control to be beneficial.

>Tenants pay for keys at cost, or close to it.
>-Long term that's (minor) profits because you can reuse the spare keys with future tenants who want them and charge twice
>Tenants can't easily clone keys and steal from future tenants
>-Also prevents copies from floating around due to tenants losing them if they can't provide a reason for the replacement.
>Limiting clones lets you sniff out unauthorized sublets
>Most high end locks can be rekeyed for little more than the price of putting in new shitty locks, so the cost is effectively a one time expense
>You get to advertise higher security locks that are hard/impossible to pick.

I don't see any downsides if you weren't slumlording besides the one time cost of changing the locks on the property; which you should ALWAYS do anyways with a new property regardless, so the cost is just the difference between some good locks and shitty ones.

Relevant story....

Are you better off flipping homes or Renting?

Hi, since you are giving free advice i would like to thank you. So if you could give me any advice it would be nice,anways I'm 17 and i live in a country called Algeria desu i dont want to live here i want to leave asap because the country is just corrupted and i cant seem to fit in anways im starting college this year i study human science i used to study languages on high school but for some reason they moved me to human science on college i have no interest on finishing college well i have to go to college because i cant find a job even if i find a job its NOT worth it. idk what to do or where to start any advice is welcome and thank you

You have to love it when tenants try to extort you, or threaten physical violence.

Guy got served eviction notices a few days ago. Standard tenant that was in good standing suddenly not paying rent, and failed to notify me beforehand scenario. I give good tenants a break on the deadlines if they tell me beforehand, but if they don't, well it's their fault. Today he sent me a long, rambling, borderline incoherent email with all sorts of random excuses and shit, most of which only reinforces evidence for the eviction. Par for the course. Naturally it was forwarded to the eviction attorney.

The best part though, was the paragraph where he threatened to kill my property manager for hate crimes if he ever saw him again. Good eviction attorneys will write this up so neatly for the cops that it may as well have a bow on it. Naturally, he got dragged out in bracelets a bit ago by the city police.

On the bright side, I can guarantee that he's not going to miss his eviction hearing, so there's no room for funny "I wasn't told" bullshit. Plus he can't damage the property, since his key is locked up with his belongings, and there are no duplicates floating around. I'm betting that his family loses their minds over the phone when they realize they can't get in to take his stuff out tomorrow. Of course, my PM is free to ignore them if they can't prove they are authorized to enter his place. I don't even have to change the locks.

>Are you better off flipping homes or Renting?

Yes.

Not all homes are great rentals. Not all homes are great flips.

You can't really ask for raw percentages either, because someone like me, as a person who prefers buy and hold, is going to primarily investigate houses that meet the criteria for buy and hold. I do flipping, but only when I see solid money in doing so.

This really has nothing to do with real estate.

If you want out, save money and migrate when you can. Best is to do things legitimately. If you are fluent, or even passable, with other languages, that's a plus.

Send me an email at [email protected], I'd love to have a discussion with you outside of this Taiwanese bobble-head trading board.

Do you have any experience with things like parking lots, storage units, orchards, ect? Basically real estate where people aren't living on the property.

I only dabble in commercial property. Have some small businesses that rent small spots from me. Couple very small stores. Mostly novelty/antique type stuff, and there's a few satellite locations for some other companies.

I have a decent lot of farmland and woods that I maintain a good path through. Rent it out to farmers, and rent out hunting rights on it for some big city yuppies. That path lets the lard balls ride their golf carts out to the hunting shack. Farmland isn't very profitable to rent on it's own, but it's very, very low maintenance, and most of that can be delegated to the farmer.

Commercial property operates on entirely different rules.

>2% of price
>monthly rent

just to be clear you're talking about buying a place for $180,000 and getting $3,600 a month in rent? meanwhile anyone who can afford $43,000 in rent each year could afford to buy a house? did you typo or is this a retarded role playing?

"Typically the rents landlords charge are between 0.8%-1.1%"
but nah OP gets people to pay double rent. it's so fucking easy.

Yeah, it's pretty small because it's Sydney's inner-inner west. Maintenance would be pretty low, especially considering the class of tenant it'd attract at $1000 a week.

Seems high to me too.

I always used 1% of purchase price should be rent every month.

Generally 2% applies to lower end units. In some markets, yes, you can easily get 3000 a month for a 150,000 dollar unit. Some of it has to do with the ratio of the land vs building values. Land itself, unlike houses, requires minimal, if any, maintenance. High value land with a shack on it is going to rent for lower % per month, and low value land with a nice house will rent for higher %. There's more to it than that, but there is a prevailing trend to that effect.

You can actually see that with
user's house in Sydney. Extremely high value land and low % rents. If you want the opposite, look at largely emti semi rural areas around smaller cities or larger towns in the midwest that are suburbanizing. I won't claim to be intimately familiar with the market there, but I've casually found places in the Oconomowoc area on MLS that would at least appear to be rentable for 2.2-2.5% because there's a substantial population uptick, and the land itself is dirt cheap per acre.

Also keep in mind that you don't want to pay the actual value of the house. The terminology gets a bit vague. Is a 200,000 dollar house that you bought for 100,000, and rent for 2200 a month renting at 2.2%, or 1.1%?

Generally I do as well. If a house isn't going to rent for at least 1%, it's not even worth looking at.

Right now my breakpoint for real investigations is around 1.3%, but lower stuff might be useful for flipping. Average place I try to buy is just above 1.6% right now, but that's skewed by the occasional 2+% property, and a 3% one that fell into my lap. Cutting out the handful of extremes puts me just a touch under 1.5% monthly rent.

If you convert those to appraisal values, it's almost exactly 1.3% monthly rent.

That's my data from the past 12.5 months. I'd be fine going a bit closer to 1%, but I don't have the extra capital, so there's no reason to bother.

Might be worthwhile.

I don't know enough about Aussie laws. If it's in a prime location, you might be able to AirBnB it, but be wary of the regulations surrounding that. Might be classified as a hotel, and that's a lot of taxes.

nope. get your head out of you butt.
i have a duplex for instance that rents for 325/375 (1/2 bdrm) in total i get 700/mo

i paid 20k for this
which is about 3.5%

i could have paid more and been happy with 2% and the tenants know they are paying just below market for a decent living space.

the key to investing in real estate is buying right.

>"Typically the rents landlords charge are between 0.8%-1.1%"
typical = common = average = not pro

storage units are great if done right.
get some cheap land that is zoned for it.
build your units. - but do NOT buy anything labelled "storage units". the markup is stupid. - buy the same materials and build the units.

orchards would fall into farmland thinking

parking lots can be great, or they can suck. depends on location more than anything.

i just use brink's replacement door knobs.
Walmart #: 553531391
for $14 per lease, i'm not worried.
when they move i can replace it, or if they give keays back i can move it to a different address and save my 14 bucks.
now higher end units, might get a classier knob, but it's just for show. the deadbolts can be replaced for

google foreign exchange students
get enrolled in one of the programs
raise any needed funds via kickstarter or something like that
while in new country, be the most awesome worker/student and make connections. let them know you want to stay and one is likely to help you.

The thing with commercial properties like hotels and parking lots, is they are frequently highly seasonal.

Hotels in particular make most of their money on a few key days, during specific weeks of the year. College graduations, Festivals, fairs, concerts, and that sort of thing.

>typical = common = average = not pro

I wouldn't go that far.

Your operating expenses on shitbox units are proportionally a lot higher, so the rent has to be as well. I find that units that rent for 1500 a month are on par with 3 500 a month units in terms of profits. The 1500 a month unit is almost guaranteed to rent at a lower %. Still cashflows appropriately, and that's all that matters.

How can I buy a new home and rent out my existing home if my income is not enough to support both mortgages without the rental income? Basic facts:
>$260k mortgage on current home
>mortgage payment (PITI) is about $1600/mo
>home recently appraised at $650k
>i'm sure i can get at least $3k/month renting it out
>want to buy a new house for around $650-700k
>have around $200k in cash, don't want to use it all for down payment though
>annual gross income of around $95k

I talked to a mortgage broker and he said I can't count rental income towards my income unless it has been established for one year. He said I can only borrow about $250k in addition to my current mortgage based on my salary. He recommended moving out, renting a place for a year while I establish rental income, then buy a new place. I don't really want to have to move twice/wait a year to buy. Is there another option? Should I talk to another broker?

you could sell to someone like me on what is known as a wrap-around-mortgage (better for me) or on a lease-to-purchase (better for you).

you could use the note/lease with me to offset your current payments, so on paper it looks like you have your normal income and not have the monthly costs.

LTP would be better for you just in case someone can't follow through. then you LTP to someone else.

in fact it would be better to set up an LLC as the LTP buyer in case that happens so if you do happen to be between tenants it doesn't look bad to the bank. you can show the LLC continues to pay down the old note.

----------------
or form an LLC and buy the new place in it, simpler that way. try to find a place that you can buy on contract rather than bank mortgage.

I use something a bit higher end. Big thing is I need my locks to be moderately bump proof.

Word got out about bump keys in the early 2000s, and there were a shitton of thefts targeting rental agencies. I didn't get hit as hard because my stuff is hidden behind trusts and multiple LLCs, but there were some well thought out hits on other companies. They realized that landlords use the same locks on their units, and that they could just pull up property records online, so they'd manufacture a perfect bump key and hit several hundred buildings in a day.

With a good enough bump key, you can open those locks just as fast as if you had the actual key. Just stick it in, thwack it with the butt of a screwdriver, and you're in. Unfortunately, once that cat's out of the bag, you can't go back to cheap options.

>home recently appraised at $650k
>i'm sure i can get at least $3k/month renting it out

That's less than .5%. Short of a hovel on premium land, this isn't worthwhile at all.

Just sell the old house.

Its 5.5% per year, not including appreciation. And that is on the total value of the house, not my equity in the house. I don't think its that bad.

fuck, man! are you in DC area?
maybe ATL?

but then again, a lock only keeps out the honest thief.
(oxymoron is used on purpose)

i'm also gonna tackle this another way.

stay where you are. spend 200k on 5-10 cheap rentals. or even a cheap multiunit. just saw 27 unit go for 190k and each unit brings 300/mo.

or if you aren't so savvy about real estate, you can partner with an actual real estate investor who can find the best deals and apply the dollars accordingly.

>5.5% per year

That's revenue. Not profit.

Maintenance, taxes, mortgage, etc, all rip into that. There is no way you wouldn't be better of selling, and buying several other rental units. Unless you are in an area where property values are skyrocketing, you'd probably be better off putting the money in a savings account than holding that house, and that's a fucking AWFUL idea to begin with.

You cannot turn a profit on rent that low if you are performing any sort of maintenance. Even farmland can rent for more than 5% per year.

The best you can do is mitigate losses, but that's still losing. Some times you just have to accept that the right choice is to simply let go.

New Englandish. I'd prefer not to specify.