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#11
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What town is this where you can buy a place for 120k and rent it out for 1500? That seems like a good deal even if you can clear as much as you are anticipating.
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#12
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To quote Rodney Dangerfield "Where is this place? Fantasyland?"
A land where you can rent 120k houses for $1500 a month? Where some brain-dead mortgage company will make wild creative loans on non-owner occupied property for less than 30% down? A land where nobody pays income taxes? Such a land exists only in the imagination. |
#13
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[ QUOTE ]
To quote Rodney Dangerfield "Where is this place? Fantasyland?" A land where you can rent 120k houses for $1500 a month? Where some brain-dead mortgage company will make wild creative loans on non-owner occupied property for less than 30% down? A land where nobody pays income taxes? Such a land exists only in the imagination. [/ QUOTE ] It's a small college town in minnesota. I would buy them from a family friend for market value so no Realtor fees. He owns 10 properties but is terminally ill so he's selling most of them off. The town capped new rental licenses last year so no new licenses can be given unless your house has been grandfathered in. It's almost unheard of in this town for houses to cost more than 150k. It's also unheard of to charge less than 280 for rent. These are all 5 bedroom places. Maybe 100% occupancy is unrealistic but in 10 years/10 houses he's only had one year where he didn't have full occupancy. |
#14
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[ QUOTE ]
[ QUOTE ] [ QUOTE ] [ QUOTE ] Does this look feasible? [/ QUOTE ] No. You won't have 100% occupancy and you will have maintenance costs and taxes. As a rule of thumb you should consider that your income after costs (taxes, management, utilities, insurance, vacancies) will be 55% of the rent. reference On the plus side you should be able to increase the rent from time to time. [/ QUOTE ] They will have 100% occupancy. I own rental property now, and it's a college town where demand is 10x the supply for rental housing. The 700 a month gives 150 per month per property for maintenance. In my experience that is more than enough. Utilities are paid by renters. Taxes would be around 400 a year per house. I just factored them out for simplicity. [/ QUOTE ] 100% occupancy is SERIOUSLY LOL!!! That's like going to the poker strategy section and claiming you're a 18 ptbb/100 winner at 10/20 NL...anyone who knows anything about real estate is laughing behind your back. What happens when a group of kids trash the place and it takes your workers 1 month to get it rerentable? What about when you don't get reembursed COMPLETELY for all the costs of new carpet etc. due to a trashed place? $150 a month? who's mowing the lawn? what about BIG repairs like roofs and painting and carpet? And don't say it doesn't happen, 2 months ago I just had a unit cost me $2,800 because someone trashed it while moving out, I sued, won, but she basically has nothing to go after...aka...~80% chance I never see the money, cause there's nothing to go after. (ohh, and she was a college student) [/ QUOTE ] Thanks, maybe i need a reality check. Keep in mind that these could be 90-100k loans. The average purchase price will be about 120k and if needed I could put 20-30k down. A 90k loan would be about 520 per month payment. 700 invested would leave more than 250 per house per month for maintenance. |
#15
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Minnesota also has no property taxes and insurance is free? The college kids rent all summer? Th kids' parents are so stupid they would let their kids pay that much rent instead of them buying a house there for the 4 years?
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#16
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Minnesota also has no property taxes and insurance is free? The college kids rent all summer? Th kids' parents are so stupid they would let their kids pay that much rent instead of them buying a house there for the 4 years? [/ QUOTE ] Yes college kids sign 12 month leases. I don't know how many parents buy their kids houses but I've never heard of it. So guess they're stupid. Ok i'll redo my numbers with taxes + insurance 4 houses 120k each-30k down 90k loan 550 per month mortgage payment 100 per month taxes+insurance 1400 rent collected 250 safety margin (after talking with a couple other landlords in the area this is more than enough) 500 per month per house invested 22k per year invested for 15 years at 7% is 600k + house appreciation |
#17
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Yes you can get loans under 7%...I did it 3 months ago. with 20% down. [/ QUOTE ] Rika, As it is essential to you #1 RE baller business, you should know that there have been some current events that affect the loan market. What happened three months ago is well, what happened three months ago and means precisely dick right now. Just an FYI. J |
#18
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This town is either a magical place where everything is perfect for landlords (and is not manhatten [img]/images/graemlins/tongue.gif[/img]) AND hasn't been discovered by the world, or you're a few fries short of a happy meal.
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#19
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No offense, but I can see this plan failing on so many levels.
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#20
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This town is either a magical place where everything is perfect for landlords (and is not manhatten [img]/images/graemlins/tongue.gif[/img]) AND hasn't been discovered by the world, or you're a few fries short of a happy meal. [/ QUOTE ] Why do people keep saying this? 30 miles from here you can get a decent five bedroom for 105k. Here's a 4 bedroom place not too far away for 63k. house edit: ok the link doesn't work but if you follow the link and search by mls number 611569 you'll find it. |
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