D
Dumbledore
Guest
Re: Me too. Who needs sleep?
> Property...You asked
Yes, I did. I actually am pretty interested in that stuff and my copies of Housewise and Investing in Real Estate are literally inches away from me as I write this. In fact...I passed my real estate exam about five years ago. I never activated my license with a broker, though. I'm very interested in real estate, but I don't have the right kind of personality for sales, I don't think. I should probably go into appraising!
> Keep your fingers crossed. Both the seller and I have signed a Memorandum
> of Purchase, but the actual contract is 12 pages long. Neither of us have
> signed it yet. My attorney is working on it now and it should be done by
> tomorrow evening.
12 pages long? Oh, my goodness!
> It's a 12-unit building. 4-4 bedroom apartments, 8-3 bedroom apartments.
> Picture below shows one of the typical, lived-in 4-bedroom places. Loft
> upstairs, lots of natural light from the dormer windows (which all need to
> be replaced, uggh). Each apartment has a kitchen with new appliances, a
> bathroom, central air, a patio, and will soon have WiFi. The current
> landlord has let the place go, which is unfortunate but it also lets me
> buy it "cheap". $630,000 4.5% down, plus $60k in repairs needed
> in the next 3 months. New roof, new siding, some new windows, and lots of
> "sprucing up". Balance paid @ 6.5% interest, 30-year with a
> 5-year balloon. The apartments rent way, way low at $550 for the 3s and
> $650 for the 4s. "The Math" says I'll cash-flow nearly $3k per
> month after expenses, maybe more when I raise rents to where they should
> be.
That sounds pretty sweet. You seem to have it all figured out. Are you going to do any of the repairs yourself and work with subcontractors to cut costs? Or are you going to work with a contractor for a different kind of headache? At my last job working for an architect, we always had so much fun dealing with contractors (sarcasm).
> The best part is that it is located 50 yards from an old hospital that
> will be torn down early next year to make way for exclusive high-end
> condos with shopping, restaurants, a coffee shop. City is also putting in
> a park in the block directly behind my place.
Location, location, location. I take it you own other rental properties that will bring your debt up to $1,000,000? I don't know if you're into the stock market at all, but I think that real estate is definitely a better way to go. (Just my opinion.) Especially with the current state of the economy. Not sure about where you are, but real estate continues to appreciate in my area at crazy rates. Five years ago, my house was appraised at $90,000 less than what we're selling it for now. It's mostly because so many people are leaving Staten Island and coming into Joisey.
And over-priced real estate is legendary in the Los Angeles area. I doubt I'll find anything out there for cheap that just needs a little elbow grease, and if I did, I'd probably have to carry an uzi to go out to do my grocery shopping. I'm very unathletic and I've always had poor aim. Better not to risk it.
> It is a still a pretty big gamble, and there are literally thousands of
> variables that keep creeping in. Weiß: Closes his eyes and goes fast.
It'll be fine. You'll do well. I feel it in my bones. Anything really worth doing has some element of risk in it. I can understand your trepidation, though. I hope for your sake that repairs are completed in the three month timeframe that you're anticipating and don't stretch out any longer and that you fill your units quickly so you don't stay upside down for long and start to generate positive cash flow ASAP.
My fingers are crossed for you, my friend!
> Property...You asked
Yes, I did. I actually am pretty interested in that stuff and my copies of Housewise and Investing in Real Estate are literally inches away from me as I write this. In fact...I passed my real estate exam about five years ago. I never activated my license with a broker, though. I'm very interested in real estate, but I don't have the right kind of personality for sales, I don't think. I should probably go into appraising!
> Keep your fingers crossed. Both the seller and I have signed a Memorandum
> of Purchase, but the actual contract is 12 pages long. Neither of us have
> signed it yet. My attorney is working on it now and it should be done by
> tomorrow evening.
12 pages long? Oh, my goodness!
> It's a 12-unit building. 4-4 bedroom apartments, 8-3 bedroom apartments.
> Picture below shows one of the typical, lived-in 4-bedroom places. Loft
> upstairs, lots of natural light from the dormer windows (which all need to
> be replaced, uggh). Each apartment has a kitchen with new appliances, a
> bathroom, central air, a patio, and will soon have WiFi. The current
> landlord has let the place go, which is unfortunate but it also lets me
> buy it "cheap". $630,000 4.5% down, plus $60k in repairs needed
> in the next 3 months. New roof, new siding, some new windows, and lots of
> "sprucing up". Balance paid @ 6.5% interest, 30-year with a
> 5-year balloon. The apartments rent way, way low at $550 for the 3s and
> $650 for the 4s. "The Math" says I'll cash-flow nearly $3k per
> month after expenses, maybe more when I raise rents to where they should
> be.
That sounds pretty sweet. You seem to have it all figured out. Are you going to do any of the repairs yourself and work with subcontractors to cut costs? Or are you going to work with a contractor for a different kind of headache? At my last job working for an architect, we always had so much fun dealing with contractors (sarcasm).
> The best part is that it is located 50 yards from an old hospital that
> will be torn down early next year to make way for exclusive high-end
> condos with shopping, restaurants, a coffee shop. City is also putting in
> a park in the block directly behind my place.
Location, location, location. I take it you own other rental properties that will bring your debt up to $1,000,000? I don't know if you're into the stock market at all, but I think that real estate is definitely a better way to go. (Just my opinion.) Especially with the current state of the economy. Not sure about where you are, but real estate continues to appreciate in my area at crazy rates. Five years ago, my house was appraised at $90,000 less than what we're selling it for now. It's mostly because so many people are leaving Staten Island and coming into Joisey.
And over-priced real estate is legendary in the Los Angeles area. I doubt I'll find anything out there for cheap that just needs a little elbow grease, and if I did, I'd probably have to carry an uzi to go out to do my grocery shopping. I'm very unathletic and I've always had poor aim. Better not to risk it.
> It is a still a pretty big gamble, and there are literally thousands of
> variables that keep creeping in. Weiß: Closes his eyes and goes fast.
It'll be fine. You'll do well. I feel it in my bones. Anything really worth doing has some element of risk in it. I can understand your trepidation, though. I hope for your sake that repairs are completed in the three month timeframe that you're anticipating and don't stretch out any longer and that you fill your units quickly so you don't stay upside down for long and start to generate positive cash flow ASAP.
My fingers are crossed for you, my friend!
