Hi, I would encourage you not to be so discouraged, and not to put this off for another year. I suspect that prices will continue to rise at least for another year, so you’ll be that far behind. Much of what CS promotes can be found on this site, so not having his course is not such a detriment. You can also take books out of the library. Have you considered loans? partners? Have you looked more at less expensive properties? My wife and I rent primarily for the cash flow: if you read more about it, you will discover that it is a lot of hard work, and then you will have to decide if you have the time, will power, and commitment for often very boring work. But if you really want to do this, you should continue working on it, ready to act within a month or two (not procrastinate). Good luck.
Working with rental properties only… - Posted by Tanisha
Posted by Tanisha on January 07, 2003 at 23:16:24:
I have always been very interested in RE and am new to this site…I have been reading as much as I can… I have read about “flipping” and I don’t think that’s for me…I really don’t want to get into redoing and fixing up houses all the time… and I would rather have extra incoming coming in every month forever then one lump some of a few thousand doallars… If i could do one good flip to pay off all my debts that would be good but I’m not really too interested in that side… I am interested in buying cheap houses/duplex/apartments and fixing them up and renting them… I have two major colleges near buy which would be great rental opportunity… Does anyone out there deal exclusivly with rental properties…Does anyone have any advice good/bad about dealing with rental properties only…
For example I’ve seen a 4 unit apartment two 2br units and two 3br units…all units are currently rented and monthly rents total $1900…apartment is listed for $120k… Now I am just using this for an example i’m not ready to buy anything right now…but I would like to buy 1 or 2 investment properites and rent them out for extra income within the next year or so…I currently live rent free with my parents and would honestly rather stay here then live in some little cramped apartment…After I have paid off everything I plan to use my rental income and regular salary to buy my dream home…what are the advantages/disadvanges to buying your first home as an “investment property” and not actually living in it? According to my calculations a $120k mortage would be approximatly $1000 a month…the property would bring in $1900 which is $900 positive cash flow on this one property…
Am I on the right track here…anyone have any good books you would suggest…
I have seen a lot of bad press about the Carlton Sheets program on this site. You should do some research on other educational programs before spending 300 on the CS course. I was going to purchase it until I found out that he does not have the pragmatic experience to backup his teachings. He makes his money off of the course, not real estate.
Sounds like you are putting together goals, and this is the start. I would recommend you order Carleton Sheets “How to Buy Your First Home or Investment Property With No Money Down” course for the education you need.
I wish I could find deals like the one you’re talking about in my area. However, there’s much more to it than what you mention. You have expenses and management on that property, so you’re positive cash flow will not be $900 a month, unless you included all that in your $1000 figure.
Also, you have to have to come up with 20% of the purchase price for a down payment unless you can get the seller to take back a second mortgage and thus create a “No Money Down” deal. Is the seller motivated, and can you convince the seller to sell by your terms? The course I’m talking about goes into all that.
Re: Working with rental properties only… - Posted by Tanisha
Posted by Tanisha on January 08, 2003 at 20:35:04:
Thanks for your advice JD…I plan to get as much information as possible…I’ll look into some other courses also…if you come across any goodones let me know…and i’ll do the same…
Re: Working with rental properties only… - Posted by Tanisha
Posted by Tanisha on January 08, 2003 at 12:44:26:
I’m in Virginia Beach,VA…I will order the program one day but I honestly can’t afford it right now…I also saw another “deal” not sure if it’s a deal or not though…someone owned 7 town homes all in the same complex…and they are selling them as a bundle to an investor…has each town home listed at $53000…some are 2br some are 3br…and they are all rented from $575-$700 per month…Just reading these newsgroups and doing the little search on the internet has opened my eyes to the number or deals around…and I know there are deals out there that i’m unaware of because of my lack of knowledge…
The ~$300 you spend on that course could save you thousands on your first deal. You really need some education before you jump into investing. If you can’t come up with $300, how will you be able to buy a property?
Re: Working with rental properties only… - Posted by Tanisha
Posted by Tanisha on January 08, 2003 at 13:05:26:
I know i can’t jump into investing…but I don’t plan to start investing for another year at least…I said that in my first post…I will buy the course by then but I don’t plan to start investing next month…i’m in my reading and learning stage now…which is why i’m up here posting questions…and reading information…I can come up with $300 but right now I have other things that are more important then a real estate program that i’m not gonna use for another year or more…I’ll start with the free and cheap information and get the course in another 6 months or so when i’m acutally ready to use is so that in information is fresh and I can apply is instantly not read it let it sit for 6 months to a year and then try to remember what the book said…