investment properties

i have a couple of investment properties in pa and myrtle beach very good returns for the money. one of my pa rentals i paid 49000 and get a return of 1300 a month rent . just fishing and just want to know if anybody else knows of any investment properties sim to mine in any other states that i can investigate. thanks

 

I’m more into timeshares

 

I mean $49,000 is about what it costs to build a 1200 sq ft standard 2 br apt with 8' ceilings and basic finishes in bulk!
What city is the PA rental in? Is it a seasonal thing?

Im interested in selling some of my cash positive rentals in North FL... but the prices will be much higher than $49,000.
My $1500/month 3/2 rental would probably be listed around $225,000. That would be the least expensive one.

 

Seems like a pretty good return, how did you find these places?

I've been in the investment game for over 20 years now, in Florida and Atlanta, but I'm out of GA now. Unfortunately nothing down here can generate any kind of positive return at the current prices.

 

they are in small towns tamaqua pa coaldale pa and pottsville pa they 2 families are pretty much gone now for the 50,000 dollar range but there are still single families my son just picked one up for 10,000 and one for 30,000 he gets 650 per month. these are all yearly rentals my property in myrtle beach is seasonal

 

tamaqua pa coaldale pa pottsville pa

 

these properties are all through the states just got to find them. thats why i put it on here.

 

see bitcoin thread

 

Who does the maintenance? I'm assuming you have management companies that handle everything and send you a monthly statement and whatever funds are remaining?

 

Being in the residential construction field, rentals seemed like a no brainer, so I bought my first two in August. Looking for a 3rd, asap, but not having to do it for income, makes waiting on the better ones easier, I think. So, I look daily.

I'm trying to keep them closer, within 30 minutes, and in better school districts.

I'm not "making" much on either right now, per month, but we're paying very aggressively on the mortgages with the rent. My maintenance costs are pretty low comparatively, since labor and materials will come at much lower rates.

The second one I bought, is 1 mile from my house, with a nice detached garage, and a large gravel parking area, that my construction company rents from my properties company, to store all of my shit. Tis nice...

 

my sister lives in Bethlehem. It has kind of a college town vibe. I was suprised how quick you could drive to NY with no traffic. I could drive 10 minutes from her house and its kinda farm country rural, which is nice. She bought an 1800 sq ft 3 story for $160ish.

 

prices are pretty high right now like Gino230 mentioned which is good and bad. I mean the "ideal" tenant is someone that makes a good living and has to stay in the area but doesn't want the hassle of owning. At break even money... you should be able to see at least 10% increase in the property value, annually. The ability to "contain" major costs makes the risk much less. If your City gives a discount on pre-payment of taxes... try to take advantage of it. One town I have a rental in gives a 3% discount paying before the 1st of the new year.

 

How about a 2/2 with beautiful views in downtown Miami. You can view all the festivities from the balcony like ultra or whatever event brings the hot shallow girls.

400k comps are at 430-450.

Doesn’t give a good cap rate but brings other things.

 

Are you guys cash buyers or taking a mortgage? If so, what kinds of rates are you getting and what down payment are they looking for? I assume at least 20% down. Do you have to pay PMI on rental property mortgages if above the 80/20 ratio?

Are any of you lisc. Realtors or do you think it’s not worth the savings if your not flipping quickly?

Sorry for so many questions but I am interested in getting into the game. I have wanted to for years but have been on the sidelines from hearing the horror stories.

 

I have not bought anything in about 7 years. Prices in South Florida are so high that there is no hope of making money. Right now I'm just operating what I have. Being a "real estate investor" means being a landlord, if you are looking for long term success. If you're into the flip game, it's very hard to do, cash intensive, and more akin to gambling. The people I know who have been successful in the flip game are usually contractors who can add some value.

Getting a loan these days is ridiculous with all of the documentation required, it's a paperwork nightmare and that's for a house you will be living in. If it's non owner occupied, there will be much higher requirements.

Getting started usually is best buying in a neighborhood you know, close to home, where you can participate in maintenance and keep an eye on things while you learn the game. Screening tenants is the biggest piece to the puzzle.

Finding a good investment property that is a condo is usually NOT the best place to start. The condo market is the most volatile, usually the first to go down in a slump. Lots of rules, and lots of expenses that are out of your control. Also rules against renting in most cases.

Last time prices were out of control, I moved some of my investments to Atlanta where there were still more affordable properties. But the old law of supply and demand still applies, the reason they are cheap is that there is a huge supply and more being added. Rents are lower and then you get into the game of lowering the rent further, or accepting a lower quality tenant, both of which are the sure way to a downward spiral. I was fortunate to get out of the ATL with a profit, and that was because I bought quality properties in good locations.

I don't know about these areas in PA, but if I had to guess, I would bet that they are not appreciating more than 2-3% per year IN THE LONG TERM. They might go up next year but there will be a fall and subsequent appreciation.

But, if you can collect the rent, pay off the loan, you are building equity and that is still a better investment than a bank account.

 

I have a friend that has dozens of properties that helps me with a lot of this. He's in commercial real estate/flipping/rentals, so I bug him quite a bit.

From my VERY inexperienced POV...

Lots of variables.

I set up an LLC just for it, so they became commercial properties, with commercial loans that have commercial rates. Insurances are higher for this reason too. Find a bank, and ask. Smaller banks seem to lend easier in this arena. Shit, ask @Gmay99.

There's a sweet spot for every property, and the numbers don't lie, so don't kid yourself when doing the math. If it doesn't make sense, walk.

You won't make money on 1 or 2 or 3, if there's a mortgage. My guy said good job on the first two, now call me when you have 30.

The idea, or my idea, is that someone else is paying down an investment towards retirement.

Again, lots of variables, but you can't have 30 properties, if you won't start with 1.

My wife was terrified when I started my own construction company. She was again worried about losing everything with the rental/flip thing. "What if we lose everything?" I just told her, fuck it, I'll move us into an apartment, start over, and get it all back. I grew up with nothing, so I'm pretty sure total property loss is survivable. Lol.

Hell, I didn't know about the prepay tax thing that @TurboBlew mentioned, and I've missed the opportunity this year, but you can bet your ass I'll be calling on Tuesday to find out. You live and you learn.

Do it.

 

I picked up a house for 85k put 20% down to avoid PMI. (2 weeks ago)
3br 1.5 bath 1200sqft
House already had renters in it...
Payment is $512 I signed new lease with tenants for $850
If i put 3k to 6k in the house it could rent for $1000 easily....

Sad part is homes in the neighborhood where selling for $40k to 60K back in 2008.

Wish i would have jumped in sooner.....and bought all of them.....

The house market in Charlotte is very high right now....House's in this range and neighborhood are selling in less than 3 days...

If i put 10k to 15k in the house it would sell for $130k

 

Sounds like a great deal. Are there a bunch of these.

 

^^^THIS^^^

To ts 199....if you really want to get into this game I would advise taking everything he has said into consideration prior to risking your capital in an area you have not fully researched and explored...

The market has changed again and if you don't know how to evaluate a project you can get hurt...

Ultimately, it is a capital intensive game any way you roll the dice....flipping is one way to approach it but you are just creating a job for yourself....plus, if you have not built before, you are playing a risky game having others build for you....

Do you know the "why" behind you wanting to get into the real estate game?

If you know the answer to that, then there are many roads you could take to get you where you want to go.....

 

They pop up pretty frequently....
The neighborhood is pretty big and at 1 point had a bad reputation for "gang activity" .....the light rail system is scheduled to be completed in the next few months that goes right beside the neighborhood, I think the property will only go up in value ....etc. (you will be able to walk to light rail and take straight shot downtown)

I put bids/offers on about 5 of them but only got the one I just got.
I always over bid the offer price...seems like the key is to get the offer in first....