Posted by I’ve got some on January 26, 2007 at 12:34:19:
I am in the utica, Syracuse area, central NY. I buy multi-family properties all day long for 15-40k, I fix them up. New furnaces, roofs, hotwater heaters, etc, rent them out for fair market then sell them to out of state owners and hold the mortgages. We have a management co. with contracts with local suppliers and contractors so we can take care of management at a reasonable cost.
Example: got a 3 unit in Syracuse (which fyi cnn money ranked #4 in the best places in the NATION to own Real estate) There are 2 -3 bedrooms and a loft, total monthly income $1900, sale price $84,900. Monthly payment with 5% down is 900 that includes principal, interest, taxes, insurance AND water.
I pay all the closing costs, provide you with a full interior appraisal, and usually the 5% is covered by the pro-ration of rents and security deposit. Rarely do my buyers have to bring anything to the closing table.
All properties are sold with a title policy, taxed paid up to date and the mortgages are a fixed rate with no balloon or pre-payment penalty.
That is what I am doing in my neck of the woods. Of course in 3 years that property will probably be worth 105K, not 200K, but we are consistant if nothing here.
That’s the million dollar question, I suppose. Let me explain what I’m looking for.
I’ve purchased a few SFR’s in the past, so I’m neither a boob nor a genius at this stuff. I’m currently living in south Florida. Investing in residential properties here doesn’t make sense, in my opinion. The cost of housing in my area is in the $300K to $350K range for a bread and butter property. Tack on property taxes of, say, $6K, followed by homeowners insurance of around $6K also, and cash flow is an impossibility. Clearly, I want to expand my horizons and invest elsewhere.
With this in mind, where have some of you been buying, with a buy and hold strategy? I have no problem with long distance properties. I can hop on a plane tomorrow if the situation warrants.
Where might I find info on sales trends, property prices and appreciation, rental rates, etc. Thank you!
Stay in Florida - It’s Getting Better - Posted by Jeff Morelock
Posted by Jeff Morelock on January 26, 2007 at 10:35:06:
Relax! Things are starting to pick back up here in the sunshine state. It is not going to be quite as good as it was. One-course-wonders will not be able to put on a blind fold, walk in any direction, and make 40K off the first house they bump into, but if you’re a buy and hold guy, stay home.
Yes, South FL is tough right now, but Pasco County has some houses under 100K still with plenty of equity, and a good rental/lease option market.
Orlando is really warming up with investors from the UK, and there’s plenty of room for everyone.
Prices are low. For a buy and hold plan, now is the time to buy.
Posted by David Krulac on January 25, 2007 at 21:30:37:
saw a 1250 sqft brick rancher today for $139,900 here in Pa.
one friend of mine bought a place over the summer for $22,000 with $900 rent a month.
Some others I know are buying all the $20k houses they can find for the income of $450-$500 per month. They figure on ZERO appreciation and are buyign for the cash flow only.
Posted by Don (VA) on January 25, 2007 at 15:46:01:
In the DC area, the most likely properties to cash flow are located in Baltimore. (I know Baltimore’s not in the DC area precisely, but you get the idea.)