Posted by JohnTN on June 08, 2011 at 15:11:25:
Hey Chris,
Thanks so much for your input. You and others have confirmed that I’m
probably better off just continuing on the path I’m already on, which is
SFR
Where about in FL are you? My work has me down in the Tampa Bay
area every six weeks or so. I’ve recently bought a condo down here that
I’ve added to my rental fleet.
Thanks again,
John
Next Potential Investment - Where to Go From Here? - Posted by JohnTN
Posted by JohnTN on March 15, 2011 at 14:53:32:
Greetings All,
First, thanks to all of you long-timers who graciously share
your knowledge, and Ray, thanks to you especially. I always
look forward to reading your posts.
A bit of background - I’ve owned a hand full of rental units
for going on 15 years. 1 duplex and 1 SFR. I own both free
and clear. After all management fees, insurance, maint,
taxes, I consistently net about 10K per year after all
expenses from these.
Also, several years ago, I flipped some MHs that I bought
wholesale and made a modest profit on them. All this to say
I’m not a total newb and I have some track record of
successful RE investments.
A few years ago, my wife and I bought a condo in a new hi-
rise. We still own our previous home which would
conservatively net $350K if sold. We own this free and clear
also, so selling this property would give us $350K to invest
in something. Mostly this home just sits and I use it as a
man cave.
I could also potentially sell my other rentals and 1031
those funds, combined with the $350K from the sale of our
prior residence to come up with $500K. This would make sense
only if I could put that additional 150K toward something
with a better ROI than the rentals I already own.
My question is, invest in what? Ideas I’ve had are a small
apartment building, a small strip center, medical office, a
laundromat (Ray? 
) Or I could do what I’m already doing
and try to find a few more SFRs or duplexes.
I’ve just turned 50 and have a good corporate job, which I’m
not looking to give up right now. My goal would be to
supplement my existing income and continue to grow my RE
investment portfolio.
Thanks in advance to any other successful investors who
would care to share their insights.
All the best,
John
Re: Next Potential Investment - Where From Here? - Posted by Chris in FL
Posted by Chris in FL on June 04, 2011 at 22:53:09:
I don’t know commercial much - not my niche. However, I have almost 30 SFR, and I love what is happening there right now. I started SFR in 1998, and it worked well then. By comparison, today I can buy the same houses for the same prices, but rents are approx. 50% higher today.
Probably no reason to sell your successful properties, especially if they have good long term tenants - unless you have a slam dunk better investment. Plus, even then, if you want money out, try for a cash out loan. In my area, central FL, I am buying lots of SFR, mostly REOs, working class neighborhoods (no war zones), in the $20Ks (including repairs/clean up). They rent for $600-800/month. Most of my funding is coming from a private lender. Doing 7 year fully amortizing mortgages, usually financing all of purchase price and maybe some of repairs. I bought 10 in the past 12 months, and, taken as a whole, my rents pay the mortgages, taxes, and insurace, with enough cash flow left to cover vacancy and repairs. Properties break even, but in 7 years all are free and clear! Plus, my ROI is incredible… I may have an average of $3K per deal of my money invested, and in 7 years it turns into a free and clear home. I hope to get 10 more this year, and maybe again the year after that. I am looking for another private investor, trying to find a longer amortization… If I can find 10-15 year money, I can buy 3/2/2 houses in nice neighborhoods, which will mix nicely with my current portfolio. Either way, SFR is a slam dunk in my area right now… Rent versus house price ratios are definitely incredible!
Best wishes,
Chris in FL
Re: Next Potential Investment - Posted by ari
Posted by ari on March 18, 2011 at 20:18:44:
Sounds like your portfolio is growing at a good pace. I would highly recommend apartments. The population is increasing, and more people are renting since the home ownership rate is decreasing. There is currently 311,000,000 people in the U.S. And that number is expected to increase rapidly over the next 30 years. So as long as you buy in a growing market where there are jobs, you will have a good cash flowing property where people need to rent.
Do you think office and retail space will see large increases in the future? Not in my opinion. Retailers are leaving strip malls and going online or bankrupt. Same with businesses. I think retail and office have very bad days ahead. Look what happened to them within the last few years? Blockbuster video is now shutting most of their doors. I’d hate to own a strip mall with them in it!