Getting started... at TODAY's Prices!!! - Posted by Tom O'

Posted by Ronald * Starr on July 04, 2001 at 17:11:27:


And others.

Sounds good to me. The NY Times had an article about this 6 or 8 weeks ago. Written from the pilot’s point of view.

There are many small niches wherein one can get outsized rent. One just has to find them and exploit them.

Good InvestingRon Starr**

Getting started… at TODAY’s Prices!!! - Posted by Tom O’

Posted by Tom O’ on July 02, 2001 at 20:27:34:

I am very interested in getting into the REI game. I am interested in buying properties to rent (and go from there). I have been reading posts on this board for some time now and I have seen some great advice from some very knowledgeable people posted. I KNOW I have to do a lot of reading (and learning) before I jump in w/both feet.

My question is this:

I live in Mass. and there has been an explosive growth in home sales (and PRICES) in the areas west of Boston (Which is where I live). I have looked at a few listings on the MLS and played with the numbers of a few avail properies, and there seems to be no way to make a positive cash-flow with out substantial down payment. Is this a bad time in my area to just be getting started as a landlord? Are there just no “deals” on MLS for people looking to rent out multi-familys?

I have very little money I could invest right now (

Re: Getting started… at TODAY’s Prices!!! - Posted by randy

Posted by randy on July 05, 2001 at 07:24:05:

try looking up info on “subject to” in the cre vast info base.

Re: Getting started… at TODAY’s Prices!!! - Posted by WilliamGA

Posted by WilliamGA on July 02, 2001 at 21:07:33:


This has been said so many times I really hate to say it again but the truth is…


I had a guy call me today and leave a message on my voice mail.

“I have a house I need to sell NOW! I have called an agent but haven’t signed anything yet, if I don’t hear from you soon, I will call you back.”

Hear the motivation? I did, too. I called him back immediately. We met at his property 30 minutes later and had the agreement signed within the hour.

This is a NICE, 3/1 with Den in a really nice neighborhood. His motivation? His tenant passed away and he has no idea how to landlord.(He became a landlord by accident when he bought his new house 2 years ago) He hasn’t made this months payment and doesn’t have the cash to make it. Scared if he lists it that it may take months to sell as it needs a few hundred in cosmetics that he can’t afford.

By the way, this house will retail for mid 70’s and I am taking it over for loan balance of 43k on a 7.5% VA loan with 20 years left and a payment of 452 per month PITI. He wanted 4k in cash, we agreed on 1k.

With your credit score, you have lots of possible ways to buy. If you want to buy without using your cash or credit (my favorite way) look for sellers, not houses.

Get the sellers to call YOU!

Good Luck!


Re: Getting started… at TODAY’s Prices!!! - Posted by g

Posted by g on July 02, 2001 at 21:06:08:

Same here in San Diego. Prices have increased 25% in one year! Some of my friends are investing in Las Vegas which is also experiencing high rate of price increases - but homes that sell for $350K in SD are going for

Re: Getting started… at TODAY’s Prices!!! - Posted by Ronald * Starr

Posted by Ronald * Starr on July 02, 2001 at 20:52:05:

Tom O’-----------

We face a similar problem here in the San Fran Bay Area, CA.

Tradional rental approaches do not make sense from a cash flow standpoint. Here are some possible solutions:

1—Invest elsewhere where the prices are cheaper and the traditonal rental program can work. I live in Oakland and invest in Sacramento – 90 miles away-- and Oklahoma – some distance further away.

2—don’t do rental investing. Buy for fast resale. This means find bargains and reselling at or near market value. Or flipping to other investors to fix.

3—Develop “high rent” approaches. There are ways to make more rent than the average. How about renting large houses to several singles who will pay more than a family might? Are there short-term renters who might pay more for a home than the usual family? These might be entertainers who are booked for a two or three month run, visting professors who are teaching for a semester, business folk who are in some two or three month training progam at a university or at their company headquarters. There are probably several other special situations that could be exploited. How about people who need a termorary home because theirs burned down or they have just moved into the area and it will take a couple of months to buy and move into a home?

4—Are there some very small pockets of especially attractive rentals that, for some reason, can be bought cheap enough to make a positive cash flow?

Good Investing and Good ThinkingRon Starr***** (NT) - Posted by J. Clifton

Posted by J. Clifton on July 02, 2001 at 20:50:17:


I’m still giving away the farm - Posted by MoniqueUSA

Posted by MoniqueUSA on July 02, 2001 at 22:14:30:


I can tell that I’m still giving away the farm.
At $43,000, 7.5% interest, assuming it needed no work, and say it’s worth around $73,000 I probably would have given the seller the $4K.

Man, I need to say ‘no’ more often (smile).


Re: Getting started… at TODAY’s Prices!!! - Posted by Paul_MA

Posted by Paul_MA on July 03, 2001 at 03:12:57:


You are in an area that Carleton Sheets calls the top of the pyramid. There is no way a 200k single family home will make sense as a rental, unless of course, you invest substantially.

Rentals do work here in Pittsfield. The numbers work, although the people don’t…lol

As William said, find the motivated seller, don’t look for property. In your area, taking over the mortgage is probably the best way.

A great “high rent” stategy - Posted by Bryan H (ny)

Posted by Bryan H (ny) on July 03, 2001 at 14:18:52:

Ron (and everyone else) -
Regarding #3:

If you’re near a busy or semi-busy airport you can run a “crash pad”. Almost all pilots and flight attendents need a place to stay near airports they frequently fly to. Also, many are based out of airports that are nowhere near thier homes. It is feasible (and common) to have 5 to 10 renting out each bedroom for anywhere from $50 to $100 a month. So many fit in a room because they are only there a few days a month and keep different schedules. These are almost always responsible professionals and it is very possible to get a whole year’s rent at once. If you’re near a busy airport, you won’t ever have to worry about vacancy. The drawback is that it can be management intensive, but some duties could be delegated through reduced/free rent. Advertising is free for these too! Just have an airline employee put a flyer up on the BB in thier employee lounge. Your house should fill up quickly because there is always a stream of fresh flight attendents coming into airports.


If you don’t ask, you will never know :slight_smile: - Posted by WilliamGA

Posted by WilliamGA on July 02, 2001 at 22:31:07: