/biz/ - Business & Finance

downsage

Do you have a couple million laying around to actually buy properties?

>>799847
You mean age?

>>799851
No, can't I finance them and then have the renters pay the mortgage?

>>799862
Only if you find renters dumb enough to pay your huge-ass rent. And dumb people usually don't have large incomes.

>>799851
>needing a couple million to actually buy properties

>>799869
As long as you can get at least 10% off of listing price and rent out at least 1.25% of listing price, you should be good. A 100k house will have a mortgage with 4% 30 years for about 400 a month.

I'm not sure why you're confused. It's really simple, buy the home and rent it out. You just need to know your numbers.

Check biggerpockets for more info

>>799945
also need to know your local laws and your state laws concerning tenant vs owner rights. the devil is in the details

also ditto on BP

>>799948
Yes, true. But he prop mgt company can handle that too, though.

>>799876
>1.25% cap rate

K E K
E
K

Listen to this guy, OP. Solid advice here. Guy definitley knows what he's talking about.

[Spoiler] I'm joking, he's a fucking idiot [/spoiler]

>>801017
you have to take the 1.25% and multiply it by 12...
>laughing at a 15% cap rate
>getting #rekt this fucking hard

the only people I know who actually make good money renting out houses are total assholes who fuck over their tenants.

>>801241
you pretty much have to

one of my buddies is a landlord and lost over a year's profits because one of his tenants violated the lease bringing in a cat. it pissed all over the place and they didn't clean it up thoroughly so it fucked up the carpet and floor underneath. now he has to sue and try to get the money out of the tenant in a tenant-friendly state, meanwhile the apartment is vacant...all could have been prevented if he walked through once every three months for a "smoke detector inspection".

always assume your tenants do not give a shit and will wreck the place given the chance and you'll do fine.

>>799844
mortgage-advice.net
Sry for spam

Tenants will be one of the biggest issues. Make sure you do thorough interviews and get a good legal document written up.

The other issue is time. Are you willing to drive to one of your properties at 3am to fix a busted water heater? I'd recommend hiring one of those management companies to handle all the bullshit. Sure you'll make slightly less per month, but time is money.

Cheap mobile homes can actually be a profitable investment. Tenants might be an issue, but you can run a small empire of homes without breaking the bank.

>>801257
I have 3 rentals. They are all mobiles. Laminate and vinyl floors. In 5 years of renting them I've lo9st one month of rent plus $5k damage. My real ROI is 8%, including those setbacks. The nicest part is, it's cash flow. The money gets deposited monthly, I do my due diligence checks (I like the smoke detector thing), but otherwise it's a worry free investment.

>>799975
Not gonna make much money by paying someone else to handle your property

>>801652
How much did you put in and how much are you making?

I am looking into buying some mobiles to do the same thing.

I want to do this too. seems like the surest and easiest way to make money for almost no effort.

>>801652

Are the mobiles on land you own or in a trailer park?

>>802996
Sure you will. More, in fact, because your operation can now scale up.

I do this. I love doing it and it is a huge money maker. I live in georgia so homes are very cheap also. I can buy a home for 40k and rent it for 800 a month. You just need to see what kind of loans you can get and then run the numbers. Figure out the whole payment: principle, interest, property tax and insurance. Also figure saving a little for repairs also. Like I said, I can buy a home for 40k and rent it for 800. I buy with cash so I usually only have expenses of 250 a month. I usually save 50 a month for repairs and the other 200 goes to insurance and property tax. Just run your numbers and make sure youre in a rental friendly area and see what rents are going for. If the numbers work then you'll be okay. Also, try to buy a home with some equity to help you buy more too. Good luck!

>>803013
In the long run, I would think it would have to be a necessity, but not just starting out.

>>799851
You do not need a couple million. I bought my first home with 0 money down. A couple million helps a lot but you only need very little to start actually.

>>803024
A house you live in or use as investment rental?

A property management company is good t gave but I wouldn't get one until you buy 5-10 homes. After that it is worth it. They only charge 8-10% which isn't much and they literally do everything for you.

>>803021
great post! ty

>>801203
He's saying you're looking for too much in a vast majority of the civilized world.

>>801652
That's weird, I'd imagine mobile tenants to be the worst kind of people.

>>803036
poors will pay rent usually ,and if they don't you basically got by the balls...right?