Posted by B-Man on April 09, 2005 at 01:28:07:
How do you buy new houses from builders at a discount? Do you buy multiple properties? The “expert advice” does not make sense. All real estate investing has some risk attached to it, but I consider lease optioning new homes to be one of the lowest risk methods because it is a new house, maintenance is low and also if you lease to the right people, they are planning on purchasing the home and take care of it as if it is theirs. How long typically are your lease option contracts and what percentage of an increase do you usually negotiate as the selling price?
“Expert Advice” - Posted by Kevin K
Posted by Kevin K on April 06, 2005 at 18:10:04:
I just spoke with a financial consultant that gave me some interesting advice about my real estate investing.
I buy new houses from builders typically at a discount, then rent them out on a lease/option basis.
This guy told me to factor in 5-15% yearly for long term defferred maintenence! This seems quite high to me, especially for a brand new property.
He said twice that buying from a builder and lease optioning is very risky but didn’t have good reasons to say that.
Anyway, I’m interested in what others factor in typically for yearly maintenence of your rental properties.