Ask tommy2 about Real Estate

[bmxicle]

Know anything about realestate in vancouver, canada? The olympics are coming and i'm looking to buy a condo to live in for about 300k, the market is really crazy right now, but with the olympics coming and everything i'm not sure that it will cool down. Any thoughts?

I really need to get a new place as i'm 19 and living with my parents now haha.

[geormiet]

Tommy,

I live in the bay area, but I'm thinking of investing in real estate in North Carolina because it seems like it's a growing market and there are plenty of positive cash flow opportunities.

Specifically, I'm looking at University condos and townhomes. Management fees look to be around 8%. For a first time investor (I will continue to RENT an apartment for myself here in the bay area) does this sound like a prudent plan to invest so far from home?

[tommy2]

Don't know de Roos. Sheets has been around forever, most of the easy money that he is talking about has been made. If you are really interested in finding deals, you would have an easier time if you were a broker.

Appraisers do steady business, but don't make tons of $. The money in RE is in development/redevelopment, brokerage and syndications.

[tommy2]

The old adage is that your property should be no more than a few hour car drive away. There are all sorts of reasons why. Management companies never run the property anywhere near as well as ownership.

All that being said, I love buying rental properties in University areas. What about Berkley?

[tommy2]

Can't speak to Canada specifically, but it seems illogical to buy into a market that is overheated by a one time event. Why not just wait until the Olympics are over?

[SteveOMS]

Hey Chris,

From my own real estate experience the NYC markets are different from the general trends from the rest of the US. Right now most major cities in the NE are shedding population (for example Boston which has been leading the pack) which has had an effect on the market with all the condo conversions increasing the number of units at the same time. NYC has gone against this trend with everyone moving back to the city and the population and number of homeowners have increased. Brooklyn has already seen a ton of apprication in value, hard to say that's going to continue, but on the other hand hard to say its going to significantly decrease. I'd feel comfortable buying in Brooklyn (and I might soon as I'm moving back to NYC in september and have begun reseaching some) if I was comfortable with the area and knew I was going to stay in the unit for the long term, 5+ years (NYC also has high closing and transfer costs and taxes related to each sale relative to other areas). There is also definatly value in having total control of your space and having something nicer for your family, even if it costs you more month over month, just don't fall in love with one of brooklyns grand old brownstones if you don't like getting your hands dirty...

SteveOMS

[geormiet]

[ QUOTE ]
The old adage is that your property should be no more than a few hour car drive away. There are all sorts of reasons why. Management companies never run the property anywhere near as well as ownership.

All that being said, I love buying rental properties in University areas. What about Berkley?

[/ QUOTE ]


Housing costs in berkeley are about 4x that in other areas such as NC.

These are rough numbers, but a place in berkeley that rents for 2k would probably cost around 600k. In NC you can buy a 4 bdrm for 150k that rents for 1400.

Plus I can't borrow enough to afford a 600k place.

I have a friend here who has used a NC management company for over a year, and she is happy with them. They are the ones I have been talking to.

Are there management companies out there who actually do a good job that you can trust?

[snowbank]

[ QUOTE ]
Tommy,

I live in the bay area, but I'm thinking of investing in real estate in North Carolina because it seems like it's a growing market and there are plenty of positive cash flow opportunities.

Specifically, I'm looking at University condos and townhomes. Management fees look to be around 8%. For a first time investor (I will continue to RENT an apartment for myself here in the bay area) does this sound like a prudent plan to invest so far from home?

[/ QUOTE ]

geormiet,

Sounds like a good plan. Ya, you won't find many cashflow opportunities out there on the west coast. I had been looking at a lot of stuff in AZ(for flips not cashflow), but the numbers were crazy tight, and with the slow market out there right now didn't want to be stuck holding something that would be an alligator.

I've actually spent the last few days doing a lot of research on NC. There are also a few areas I've been looking into that haven't "boomed" much yet, that are seeing a lot of growth in population due to the high costs of places like CA, AZ, etc... as well as the scare of a bubble in those areas. These places I'm looking at sounds similar to what you are looking at getting into, as I was a little leery of buying and renting to college students before, but have since changed my mind looking over a lot of the numbers. They also have good chance for appreciation, and cashflow.

And yes, management fees should be somewhere around 8%. They charge different rates, but are almost always negotiable.

By the way, how do you like living in Costa Rica? What made you move there?

I don't know how much research you've done on the markets where you are looking, but another investor showed me some extremely good articles today. If you are looking for more info, let me know and I'll find the links for you.

-Bill

[DamitBob]

Hey T

Lookin to get a second residence (townhome) in Vegas. Summerlin or Henderson. Finding 2 bd 2 baths we like for about 280-300K. Is Vegas still going up or would you wait? We're in no hurry.

Summerlin Townhouse

[DamitBob]

Opinions from Locals or Real Estate pros in Vegas appreciated as well......