Income rental properties any one have any? Need advice.

[Bobbyloads]

I came across a pretty good loan at a very low interest rate for 30 years. I have to flip this money so it’s paying itself off and potentially making extra income on top.

Only solid idea right now that made the most sense to me was to buy a property for cash preferably a ready one if not a cheaper one a put a little bit into it. Loan repayment is $400/month for 30 years if I buy a condo for example outright figure loan 400 plus say 150 taxes and say 200 HOA fees and about 100 insurance I would be at $850/month expenses as long as I can rent out for $1100 that should be good no?

I keep watching these YouTube videos but they all end up in them selling the idea of using their company to do this which I don’t trust anyone if anyone will **** up my money it’s going to be me personally.

Anyone have any experience in this and if so what are your thoughts and ideas any advice is greatly appreciated!

 

[Jin]

Buy in cash.

Get a 30 yr loan.

Which is it?

 

[Bobbyloads]

I got the loan for over 80k so technically both I guess. I have to repay the loan obviously but I would be paying cash at purchase.

 

[Jin]

I got the loan for over 80k so technically both I guess. I have to repay the loan obviously but I would be paying cash at purchase.

Ok. You are just confusing terms.

The bank would pay the seller cash. You are paying with a loan.

My best advice is to aim for a 15 year loan. Will save you thousands of dollars but will be a bigger payment monthly.

Real estate is a good investment. Keep
in mind either you need to manage the property or pay somebody to manage it.

 

[Bobbyloads]

Ok. You are just confusing terms.

The bank would pay the seller cash. You are paying with a loan.

My best advice is to aim for a 15 year loan. Will save you thousands of dollars but will be a bigger payment monthly.

Real estate is a good investment. Keep
in mind either you need to manage the property or pay somebody to manage it.

ok sorry man here I’m gonna explain again

got approved for an SBA loan 80k

Signed all papers waiting on funds

30 year term 3.75% interest

one money hits account I need to flip it and that’s my idea what to do

 

[Jin]

ok sorry man here I’m gonna explain again

got approved for an SBA loan 80k

Signed all papers waiting on funds

30 year term 3.75% interest

one money hits account I need to flip it and that’s my idea what to do

IME the bank pays the seller directly on the buyers behalf when you get a mortgage.

Is it not a mortgage? What is the price of the house?

you should be able to get a mortgage at a much better rathe than that unless your credit is really bad.

 

[Bobbyloads]

IME the bank pays the seller directly on the buyers behalf when you get a mortgage.

Is it not a mortgage? What is the price of the house?

you should be able to get a mortgage at a much better rathe than that unless your credit is really bad.

3.75 is a good rate plus it’s no money down I just hey the money I’m trying to find something in that price range maybe a
little less if it needs work. If all goes good do it again with a mortgage and a down payment on the next one

 

[Bobbyloads]

Plus with mortgages there is all the extra fees and shit this would be like a cash sale so makes it a lot easier

 

[DF]

If you invest in a condo make sure the Condo association allows rentals. Condos can be an easy flip with little money invested. You should also be aware of any type of assessment that maybe coming down the road. The the septic shits the bed or roof needs to be done early an assessment could be big money.

 

[Bobbyloads]

I plan on keeping it for the long term and yes will check with association about the rental. Where I’m buying there is it septics and roofs covered by association.

 

[j2048b]

Don't get stuck in a situation where u cannot get rid of the tenants.... Some have rights once they are in a building and in some states its hard to evict....

Covid jacked up. A few friends rentals because tenants lost jobs, couldnt pay rent, yet he couldnt evict them....

 

[Bobbyloads]

Don't get stuck in a situation where u cannot get rid of the tenants.... Some have rights once they are in a building and in some states its hard to evict....

Covid jacked up. A few friends rentals because tenants lost jobs, couldnt pay rent, yet he couldnt evict them....

i know but that’s a big part why I wanna do it now with covid and these riots people getting screwed I think I can get a good deal and I have 12 months of not paying payments on the loan so be patient find a deal then be patient again and find a good tenant. Only lose the association and tax payments for a few months if that.

 

[Chump16]

we sold our rental just before the shut down ....... i was damn glad to get out of it for a few reasons ....... we had it for ten years, alot of good tenants, but some were a pain in the ass ..... the Covid thing did not help

all that being said, real estate is a good investment

 

[DF]

I plan on keeping it for the long term and yes will check with association about the rental. Where I’m buying there is it septics and roofs covered by association.

Yes, the association covers these things with your condo fee's. However, should they have an unexpected expense. The roof needs repair before the predicted life. You are on the hook to make up that money. I lived in a condo for 16 years & that happened a hand full of times. If the snow budget falls short ect... you pay.

 

[Bobbyloads]

Yes, the association covers these things with your condo fee's. However, should they have an unexpected expense. The roof needs repair before the predicted life. You are on the hook to make up that money. I lived in a condo for 16 years & that happened a hand full of times. If the snow budget falls short ect... you pay.

yeah true but how I’m looking at it I put no money of my own use the money I got to buy the condo maybe I’ll add money along the line but that money will be paid off by the condo rent eventually and when it does I have the condos equity for retirement or for kids or what ever with out spending much everything is a risk but no risk no reward I guess

 

[Bobbyloads]

we sold our rental just before the shut down ....... i was damn glad to get out of it for a few reasons ....... we had it for ten years, alot of good tenants, but some were a pain in the ass ..... the Covid thing did not help

all that being said, real estate is a good investment

That was not a good pitch lol

 

[DieYoungStrong]

I have a 2-Family rental property. Not sure what your question is though?

Never buy with cash. Cash is better off in your pocket. Use the banks money.

You need to have a cash contingency on hand to cover maintenance and repairs that pop up all the time, and all the little expenses that add up - landscaping, snow removal (depending on where you live), etc. And you need enough money in contingency to be able to pay the mortage, insurance, taxes and all that good stuff for 3 months if unit(s) are vacant.

It's a good retirement investment. You need to own a bunch of properties to make money as a landlord. I make a couple bucks on my place at the end of the year. It's nothing life changing. I'd need at least 10-15 more to really make money at it, and I'm not interested in the full time landlord life. Just make sure you're not losing money at the end of the year.

Make sure you screen your tenants very well. I use a realtor so they never meet me until they make it through his screening process. This also saves you from any potential discrimination accusations.

 

[Bobbyloads]

Agree with most of it but sitting on money does you no good have to flip it regardless its a loan so yeah no money out my pocket.

 

[CohibaRobusto]

I've been thinking about getting a rental property also, but here is my dilema. I could put all that cash into AT&T stock and make a 6.75% annual dividend.

Granted, probably not as much profit as a rental property, but I don't have an extra house to keep up or renters to deal with.

Yes I would have capital gains tax, but I'd have property tax, homeowners, and upkeep on the house.

 

[Bobbyloads]

I've been thinking about getting a rental property also, but here is my dilema. I could put all that cash into AT&T stock and make a 6.75% annual dividend.



Granted, probably not as much profit as a rental property, but I don't have an extra house to keep up or renters to deal with.

Yes I would have capital gains tax, but I'd have property tax, homeowners, and upkeep on the house.

I don’t trust the stock market unless I would have insider trading and I never went to college so I don’t know any people that would have that info.

I always wanted to get into real estate and this is the perfect opportunity and I’m pretty sure people are gonna wanna sell ASAP right now given the circumstances and I can afford to wait it out once I buy for a while due to the 12 month no payment thing.


Everything is a risk in life but if you don’t take any won’t get anywhere.