If you had $100,000...

chrisreedrules said:
Just an update on this...

We went with a sizable downpayment (about 50% of the home purchase price) on a great home in a desirable historic district of Jacksonville. After looking around for a couple weeks, we decided to go with a property that was in decent shape and wouldn't require much work. Mostly because many of the ones we looked at in the area we were interested in for our initial price range were either in greater disrepair than I have the time or energy to deal with, or were not exactly what we were looking for. So anyway...

Things have been going pretty good so far. We've had to invest a little bit of money into the plumbing and air conditioning ductwork, but all things considered, I have no real complaints. We found tenants in less than a week after showing it for a few days and screening a few applicants. To be honest, we were asking what I thought was a lot for the home ($1695 for 1700 sqft home we purchased for $215,000) but its location is hard to beat for the area (you can literally walk to any amenity you could possibly want from the home in about 5 minutes and its a block away from a nice city park) but we filled it fast.

So far within the first couple of weeks, this is what I've had to deal with:
*Tree removal service
*Plumbing leak
*A/C broke two separate times
*Bad storm caused tree limb to fall on power lines in back yard
*Backyard fence installation
*Sort of "needy" tenants

It has pretty much eaten up almost every single one of my days off in some way, shape, or form. But I'm learning a lot fast and I'm actually really enjoying it. We also have purchased plenty of liability insurance at the behest of ATN and a real estate attorney. Anyway, $1700 /month on a $215,000 is almost an 8% ROI. Not too shabby all things considered. We are thinking of adding a garage apartment or perhaps a duplex onto the back of the property in the next year or two and that will give us the potential to basically double the income (and the headaches) from the property.
Click to expand...
Good luck on your first investment property!

Your cap rate is going to be less than 8% because it is figured on NOI. When you take out financial services it's going to be even less.
 
smack300 said:
Just put it all in Apple stock. In September they will probably add another usb port to make a grand total of two on their macbook. And they will sell millions of them.
Click to expand...

Looks like you would have lost about 20% on that pick in about a year. Best to diversify.
 
In other news, the house we purchased last year as an investment has gained A LOT of value. I had a good feeling about it because I know the area really well and it was a good opportunity. We have put about $20,000 in upgrades into it (some of them were completely necessary like a new roof and electrical work as well as some air conditioning work and a new hot water heater). It's value /sqft has gone up almost 30% in the past year. We are looking at perhaps another income property in the next year or two, but we'll probably be done after that for a while. As good as it has been doing for us this year, I don't want to overextend into real estate too much.
 
In my area in Raleigh FSBO's are selling within a week or two. Totally unheard of. Inventory is very low and lots of buyers. I'd sell but then I'm just buying into an inflated market at the same time.

Keep in mind people buying in 2006 saw a huge gain as well... until they didn't.

I'd be surprised if this is a true bubble, probably more just making up for lost time, it will need to continue for the next year or two to get out of hand. Yellen has said she wants housing to drive the recovery.
 
chrisreedrules said:
I think Apple is a great buy right now. Their stock will go back up.
Click to expand...
cool story, says you and why? Who's buying an iphone 7splus with pidgeonhole data processing power RAM and dumb camera uptrim?

haven't had any significant innovation in the past two years. watch is a piece of junk.
Biggest hunk of cra p I put money in since '14. break even in 24 months is comical
 
bimmerphile said:
cool story, says you and why? Who's buying an iphone 7splus with pidgeonhole data processing power RAM and dumb camera uptrim?

haven't had any significant innovation in the past two years. watch is a piece of junk.
Biggest hunk of cra p I put money in since '14. break even in 24 months is comical
Click to expand...
They will expand much further beyond devices. Recent news indicates they are going to make a bid for a large media company. Last I looked it may have been Time Warner? I'm not saying that things have slowed for them, but they are a HUGE corporation with the funds to attract the top talent. They will be just fine long term.
 
Old post I know but a good place to look for income property is near a military base. Usually they are in cheaper parts of the country where you can buy a decent house for sub-$150k. Rent prices are usually towards the top of the market due to constant demand. If you cater to military individuals you know they get a guaranteed paycheck and there's always people looking for a place. I am seriously considering buying a house in Panama City, Fl as an income property near Tyndall AFB where I was stationed for this reason. I saw several decent houses you could buy for $100-150k and rent for $1k-1500 a month easy.
 
Honestly, with the proposed changes to BAH making their rounds in Washington, if approved, I'd imagine that will make such a property even better. Everyone will be looking to max BAH since they won't pocket any amount they don't have on paper in either a mortgage or a rental contract. Terrible idea that will hurt service members financially who aren't already running away from the service in droves, and it will also ensure that the govt spends even more money on mil benefits than they already are (so exactly the opposite of the intent)…….however it will be beneficial for the real estate market so for those of us who own, I suppose at least that is good :)
 
FWIW, the "only get paid as much as your actual rent/mortgage" policy has been in effect at OCONUS bases forever that I know of.
 
chrisreedrules said:
In other news, the house we purchased last year as an investment has gained A LOT of value. I had a good feeling about it because I know the area really well and it was a good opportunity. We have put about $20,000 in upgrades into it (some of them were completely necessary like a new roof and electrical work as well as some air conditioning work and a new hot water heater). It's value /sqft has gone up almost 30% in the past year. We are looking at perhaps another income property in the next year or two, but we'll probably be done after that for a while. As good as it has been doing for us this year, I don't want to overextend into real estate too much.
Click to expand...

Probably not the best time to buy, if everything is 30% more expensive. I am pocketing cash right now and when the market stabilizes here in DFW, I am probably going to pick up 2-3 more rental properties. Hopefully, the interest rates don't go up too much in the mean time. I would prefer not to put too much of my own money into them.
 
mojo6911 said:
Probably not the best time to buy, if everything is 30% more expensive. I am pocketing cash right now and when the market stabilizes here in DFW, I am probably going to pick up 2-3 more rental properties. Hopefully, the interest rates don't go up too much in the mean time. I would prefer not to put too much of my own money into them.
Click to expand...
The DFW housing market is insane. We just bought a house and it took 18 months to finally get an offer accepted (we saw 37 houses and put down 16 offers) all of which went 8-35% over asking

(houses between 200-300K last less than 12 hrs on the market)

Luckily our seller was looking to just get rid of it since he lived out of state for the past 3 months so we got it well below asking
 
You must log in or register to reply here.

Similar threads

Space Monkey
The "good" ol' days...
Replies
6
Views
5K
///AMG
///AMG
Papoo
Forward Planning: returning to the US
Replies
10
Views
2K
drunkenbeagle
drunkenbeagle
NC-Sean
Latest Skywest interview
Replies
1
Views
3K
Masref
M
derg
"The truth about the luxury of Qatar Airways"
3 4 5
Replies
91
Views
14K
Alanna
Alanna
typhoonpilot
Pilot shortage - an article
2 3 4
Replies
67
Views
7K
Richman
Richman
Back
Top