StealthRabbit: Real Estate Investing Tips
Posted 10-13-2019 at 06:01 PM by jdhpa
Quote:
Originally Posted by StealthRabbit
Just be VERY careful if you have realtors that are friends!
34 RE transactions for me (2) miserable times using a realtor (at the insistence of other party who wanted a very troublesome, time-delays, and expensive hand-hold)
You MUST know the local turf / RE potential, AND have a exit plan or 2, before you make an offer.
It can be worth paying more for better earnings potential (higher rents and equity potential).
I only buy desirable spots for resale and nice spots for living with any property I add to my portfolio.[/b] (Rents are higher, tenants stay longer in desirable places).
Usually buy rural view props if SFR, or near parks, transit, walk-able, or available for positive growth zoning changes for commercial (I prefer commercial NNN, or Commercial spec props to SFR.)
I usually get 10 - 12% cap rates + 10% equity appreciation(WA) (5% equity growth on my TX props).
Doing 'fixers' adds more to your equity growth (I like trashed homes on really nice lots (few buyers are interested in that).
I use a very simple rule...
1% / month rents for capital price ($300k must bring $3k / month rents). If it can't bring that, or a 110% gain by selling tomorrow, I keep looking.
I plan on liquidating all SFR / family units before age 70, and either carry the paper (with 30% down) or 1031 to a NNN Commercial or passive RE investment. I will likely keep some form of RE for my 'bond / income' portion of total portfolio. maybe not if I find something easier (very possible).
I prefer to keep loans on my income props. (100% deductible)
I keep all investment RE in states that have no income tax filing requirements.(SIMPLIFY)
Not fun at all times, but it provides a pension level income and pays for my travel to desirable places where I keep rentals, + equity gain potential.
Tenant average stay is 7+ yrs and they love it). no property managers.
My biggest issue is rural props... Well, septic, grounds maint = high risk, higher input. But... It is what I am familiar with. (farm kid).
Know your market... upside and especially downside!
RE can be FOREVER to liquidate.
Don't buy something you cannot sell!
34 RE transactions for me (2) miserable times using a realtor (at the insistence of other party who wanted a very troublesome, time-delays, and expensive hand-hold)
You MUST know the local turf / RE potential, AND have a exit plan or 2, before you make an offer.
It can be worth paying more for better earnings potential (higher rents and equity potential).
I only buy desirable spots for resale and nice spots for living with any property I add to my portfolio.[/b] (Rents are higher, tenants stay longer in desirable places).
Usually buy rural view props if SFR, or near parks, transit, walk-able, or available for positive growth zoning changes for commercial (I prefer commercial NNN, or Commercial spec props to SFR.)
I usually get 10 - 12% cap rates + 10% equity appreciation(WA) (5% equity growth on my TX props).
Doing 'fixers' adds more to your equity growth (I like trashed homes on really nice lots (few buyers are interested in that).
I use a very simple rule...
1% / month rents for capital price ($300k must bring $3k / month rents). If it can't bring that, or a 110% gain by selling tomorrow, I keep looking.
I plan on liquidating all SFR / family units before age 70, and either carry the paper (with 30% down) or 1031 to a NNN Commercial or passive RE investment. I will likely keep some form of RE for my 'bond / income' portion of total portfolio. maybe not if I find something easier (very possible).
I prefer to keep loans on my income props. (100% deductible)
I keep all investment RE in states that have no income tax filing requirements.(SIMPLIFY)
Not fun at all times, but it provides a pension level income and pays for my travel to desirable places where I keep rentals, + equity gain potential.
Tenant average stay is 7+ yrs and they love it). no property managers.
My biggest issue is rural props... Well, septic, grounds maint = high risk, higher input. But... It is what I am familiar with. (farm kid).
Know your market... upside and especially downside!
RE can be FOREVER to liquidate.
Don't buy something you cannot sell!
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