Real Estate Thread

[Anonymous No.53822660]

I'm buying a couple of properties in my college town and hiring a property management company to manage tenants.

[Anonymous No.53822693]

>>53822660
>buying the top on prices
>paying the most interest % in the past decade
>rent your six figure bags out to reckless idiot college students
>take a 10% haircut on gross rents for property manager jannies
sounds like a great idea anon. i hope you stock up on drywall and interior doors because they're going to get drunk and smash holes in both of them, at the very least.

[Anonymous No.53822699]

>>53822660
And I'm pouring concrete powder in the toilet and spilling my tendies grease down the the drain. Clean it up or I will get the state HUD involved.

[Anonymous No.53823017]

>>53822693
The interest rates are what pushes retards like you out of the market.

[Anonymous No.53823124]

>>53823017
>vague, low IQ answer
yes anon you are the lone genius

[Anonymous No.53825241]

>>53822693
yet in 10 years half of his mortgages will be paid of by tenants and you will still be salty and frogposting on this shitty board

[Anonymous No.53825303]

>>53825241
Ten years is your investment horizon? Just buy Bitcoin or SPY if you're waiting that long.

[Anonymous No.53825660]

>>53825241
>yet in 10 years half of his mortgages will be paid of by tenants
he's presumably on a 30 year mortgage and you might want to understand how an amortization schedule works because he won't even be 1/3 of the way into principal repayment after 10 years.

[Anonymous No.53825678]

>>53823017
>low profit margins and high risk makes everyone but me leave the market
>those fools!

[Anonymous No.53826017]

>>53822660
no you're not
what you're doing is posting a b8 thread

[Anonymous No.53826049]

>>53825660
he can barely even write an english sentence
of course he doesn't understand mortgages lol

[Anonymous No.53826251]

I'm 25yo and have no idea what I'm doing, I have no close family/friends to advise me if this is a good deal or a total ripoff.
>Small cabin with zero neighbors
>1 bedroom 1 bath
>$21,000 -> $90,000 the past 2 years
I'm calling the realtor and taking a tour this Tuesday. I make $65,000 a year with $30,000ish saved up from crypto and silver/gold.
/biz/bros is this a good deal or a total ripoff? I have no idea what I'm doing but I could live frugal and pay it off quick? Do I buy it or not? Plz spoonfeed me (with airplane noises) I'm scared bros

[Anonymous No.53826372]

>>53822660
Some advice from a former landlord with this demographic:

- don’t rent out to guys, they will wreck the place and treat it like shit
- Facebook creep everyone you get. Do their profiles look nice ie come from middle upper class? Or do they have weird filters, trashy tattoos, post about politics and stuff, etc you can quickly learn someone’s mental health this way
- Asian students are great, responsible, quiet, etc. outside of Indian students. Their cooking will ruin your kitchen
- grad students should be your demographic. Usually live quieter lifestyles, not partying as much. Sorority girls are good too though, won’t host ragers and likely come from money so even if they lose job parents will foot bill
- you don’t want families, or those who are employed and have to make ends meet. You want people whose parents are likely footing the bill.
- you don’t want old farts because they have the time on their hands and experience in life to complain about everything


this is a sweetspot demographic if done right. Their expectations are low so they are fine living in absolute slums, they have no experience with landlords so won’t be on your ass for everything, but despite that they are still middle to middle upper class. You’ll get enough interest in your properties to get a ton of applications. It’s worth the time up front to vet (this literally takes just a few minutes) to make sure you don’t get a bad tenet who makes your life hell later on

Godspeed boyo

[Anonymous No.53826400]

>>53826251
No

unless you have another house and you will use this as a vacation cottage.

[Anonymous No.53826404]

>>53826251
If you’re within 2 hours of an airport and 30 minutes from a populated area it’s a good buy. Just make sure winters aren’t severe or you’ll hate yourself.

[Anonymous No.53826445]

>>53826251
Is your plan to live in this place or rent it out? If it’s to live in it then yea, that is ridiculously cheap for a house and less than you’ll pay in rent. If it’s to rent it out then long term or short term tenets? This to me screams more Airbnb than finding some serial killer tenet or hillbilly trash individual who is looking for a place to rent that is under $500 /mo I.e. you’re self selecting from a bad group

Look at comparable Airbnb’s in area if doing short term rentals. This can give you estimated cost, you can look at the next month for several places to estimate availability (are all weekends booked? Weekdays? Etc). Is it seasonal or year round place you could rent? Then understand their fees and how much you can expect to get in return compared to a monthly payment. Factor in 1-2% cost of unit for repairs as well, might be more if in bumfuck no where

I actually think small cabins outside National or state parks is a solid niche but have to do homework

[Anonymous No.53826612]

>>53826445
I'd be living here not renting it out. Comparatively renting a decent apartment would cost me $1100 minimum in my area, you're right in that $450 a month on the mortgage is nothing compared to that and that's the main draw to me.
>>53826404
I am reasonably worried about electricity and internet costs/reliability since it's literally on top of a mountain. In terms of snow and winter I would just call off work and stay home, I have that flexibility at my job. Heating costs I dunno, I can wear sweaters I guess.
>>53826400
It's so cheap though. I'll never forgive myself when 2 years from now BTC triples and my $20,000 downpayment could have been $60,000 by then. That's what I'm worried about, but I don't want to end up like a GME cultist homeless living out of a van. I'm 85% dead set on buying this property, after the inspection and tour I think I'll feel better about it. I just hate seeing how it literally went from
>$21,000
to
>$90,000
less than 2 years later, I feel retarded buying it in that case but it still seems like a decent buy. I dunno, I really don't. Thanks anons for the advice.

[Anonymous No.53826701]

>>53826612
you are a retard buying it
this stupid cabin didn't magically gain 70k in value in 2 years

[Anonymous No.53826760]

>>53826251
Looks like a shack ie a total ripoff
You could build this for 5 - 10 grand probably.. new with proper insulation. Just look up the price of those roofing sheets they aren't expensive.

[Anonymous No.53826785]

>>53826612
Jesus if you're paying that much get somewhere with concrete or stone walls. Or just buy a much cheaper made to order " garden chalet" /home office type thing.

[Anonymous No.53826810]

>>53826701
>>53826760
>>53826785
I KNOW but the only other houses in the area are $150,000+ "starter homes". Maybe they made renovations to it in that time? They already dropped the price from $135,000 to $90,000 the past 5 months, maybe I can get them to pay for the closing cost fees too. It's isolated on a mountain, perfect for an autist like me. I don't need much space, I can live cramped. I was dead set on buying it now I'm dead set on NOT buying it, I really don't know. It's 22 minutes from my work, it's conveniently located, it has a decent view of the mountain?

[Anonymous No.53826811]

>>53826701
If it was restored then yes it did. 66IQ

[Anonymous No.53826845]

>>53826612
How long do you plan on living in it? Looks nice desu without knowing more on location would strongly consider it. Don’t listen to the people saying it’s dumb to buy because of change in home value. It clearly was completely renovated.

Your primary home is not and should NOT be viewed as an investment. Don’t get cute with trying to time the market or other dumb shit. Just do the math on if you can afford it , what monthly expense would be, etc. if you plan on living in this place 4-5+ years then it’s a no brainer buy from a math standpoint, assuming you aren’t losing your mind alone in the woods. You won’t get comparable rent anywhere else like this , you very likely could rent it out and turn a profit , etc. people might look at you sideways because of it being a small cabin but remember most people are idiots, and think it’s smarter to buy a $225,000 SFH starter home McMansion with space you don’t need and payments you can barely make.

A place like this for a single dude is all you need and you can pay it off very very fast. Again my advice is dependent on if you actually want to live here a bit (not forever, but certainly not 1-2 years). If you do you can enjoy low mortgage payments or hell pay it off and be mortgage free and really stack wealth - you could be financially independent in your 30s to early 40s if you play your cards right

[Anonymous No.53826848]

>>53826760
No the shell of the house alone would cost $10-15k. Electric hookup could cost over $20k. Septic is another 15k. Finishing inside would be 10-20k. The land it’s on is 7-15k. You’re not as smart as you want to believe.

[Anonymous No.53826853]

>>53826612
It's some cuck shed that a flipper is trying to make a quick buck off of, look at the price history and when it was sold. Look at the "laundry room" and kitchen without appliances lmao. The hvac was installed in 2021 and already needs repairing.

You're a cuck if you buy that guy's shed.

[Anonymous No.53826873]

>>53826612
An old coworker of mine lived on a mountain. He got satellite DSL which was pretty crummy. He had to wait for his neighbor to die so he could pay a telecom company to run fibre to his house. I never heard him complain about power or heat, but the 40 minute trips to the city for doctors/grocery didn't sound ideal to me.

[Anonymous No.53826880]

>>53822660
What's your cap rate with a management company retard? I guarantee its lower than a fucking 6month CD. In fact I bet your cap rate is not even positive.

Actually go ahead and do it. Leveraged yards still need to be dragged face first over the coals.

[Anonymous No.53826907]

>>53826873
It's not a terrible location, just not as rural as it appears.

[Anonymous No.53826917]

I’m buying REITs and not worrying about administration at all.

[Anonymous No.53826940]

>>53826907
If it’s knoxville then you don’t even have to worry about the weather you could live there year round , also not a bad market IMO and guarantee you could rent this out on weekends especially to football hilljacks in the fall

[Anonymous No.53826979]

>>53826853
So what? Real estate isn’t some game between two charlatans where one wins and one loses. A guy bought it, made renovations, and is trying to profit. Good for him. OP gets a turn key house to live in that is 60% cheaper than any standard suburban hell hole home. OP isn’t trying to flip it, he’s trying to live in it - and if that’s the case the math is very much in his favor and it’s also a pretty cool space.

Agree that things like hvac and all appliances should and will be checked by a inspector obviously , and could probably be negotiated into the buy given how desperate the seller appears to be via those price cuts

[Anonymous No.53827065]

>>53826853
>>53826873
>>53826845
>>53826848
Thank you, I was going in completely blind with zero advice from anyone else, I'm only 25 with zero experience but thanks anons for some perspective. Thanks for the helpful responses, but I'm still hesitant and leaning towards waiting though. I live with my roommate atm and only pay $300 split between us. Maybe next bullrun after saving up more money. Thanks anons.

[Anonymous No.53827079]

>>53826979
It's not turn key, it still needs work. The house flipper is having cash flow problems and is trying to exit with his 200% profit and as long as people keep flippers in business they'll keep fucking the real estate market for everyone else.

[Anonymous No.53827242]

>>53822660
>become landlord for commie college students who will 100% wreck your shit

[Anonymous No.53827293]

>>53827079
Yea the work gives me pause. I’d be less concerned about replacing stuff and more concerned on why new equipment is having problems and if there’s any additional cost to upkeep this thing in the mountains

As for the flipper - look at the price history. Who knows what it looked like years ago and how much he bought it for, but very good chance he’s not even going to profit much if anything unless he DIYd it or used Mexican labor

[Anonymous No.53827308]

>>53827065
That’s a very good rent payment to have so no problem stacking cash. Renting is fine, as long as done cheaply imo

[Anonymous No.53827403]

>>53827079
>>53827308
I just got off the phone with the real estate agent. It's cash listing ONLY because the HVAC needs replaced and so it's not technically livable by bank standards. No bank would be able to give a mortgage on it in that condition. She said the buyers are willing to
>increase the price
in order to fix the HVAC and discuss a mortgage afterwards. She mentioned a possible $2,000-$3,000 increase. I think I can wait another year before buying a house.

[Anonymous No.53827499]

>>53827403
Holy shit! They really were looking for a quick flip on a shit shack! Here's hoping for mass liquidation of these mentally disabled people.

[Anonymous No.53827534]

>>53827403
>wants to unload his plywood box bags
>too poor and retarded to spend $2-3k to make it mortgageable
unreal

[Anonymous No.53827631]

>>53827403
You're making the right call, if he can't afford a "$3k" repair, he cheaped out on every other renovation. He deserves maximum pain and don't give him a cent of your money.

[Anonymous No.53830813]

>>53827631
Yea anon. I like the concept of a <100k mountain cabin to live in for a few years and stack cash. Really do. But the cheapness here has red flags as well as how desperate he is to offload it yet won’t pay for something as simple as an hvac, which no buyer should be expected to replace

He’s probably holding bags on this thing as well

[Anonymous No.53831287]

>>53823124
high iq anon actually mentions prices and interest. Subtly letting me know he understand lower principal higher interest rate can actually be a good thing. Also letting me know this guy is a idiot>>53822699

>>53826873
>but the 40 minute trips to the city for doctors/grocery didn't sound ideal to me.

Man thats basic travel time in Houston for most people driving during normal hours to work, back from work, then after work to the grocery store. I am sure its the same across most major cities. If the drive is 40mins of nice country and no traffic I'll take that over grid lock to drive 10 miles in 40mins.

[Anonymous No.53831344]

>>53826251
I had 100 sqft cuck shed built in my backyard for 3k. I did the drywall, insulation, flooring myself and paid an electrician . All I am missing is plumbing but this is a cuckshed I can piss outside in the back yard some where.
Spent like maybe 5k. That thing there is 700sq ft, so I dunno 5k x 7 gives you 40k. That math is real retarded tho cause you get better bang for your buck building 700sqft compared to 100sqft. But even with retarded math that cuckshed you want is over priced by at least 30k not to mention it was 20k before hand?

[Anonymous No.53831349]

>>53826372
I'll add to this.
>Only rent to girls who are attractive
>Target girls looking for something 'affordable', just under the upper-middle class thresh-hold
>CCTV everywhere
I think you know the rest

[Anonymous No.53831356]

>>53822660
>I'm buying a couple of properties in my college town
I am HIGHLY considering a play like this once rates go down. Rent by the bed, say $500/mo. I paid 700/mo to live in a fraternity house here 3 years ago and this place is a 5min drive from campus so I'd take that deal if I were still a student.

[Anonymous No.53831388]

How much further will rural properties like pic rel drop? I can put $150k down on this right now.
Is it really prudent to keep blowing money rent-cucking for the next 2 years if this property would only feasibly drop another 10% max?

[Anonymous No.53831390]

>>53831356
these houses get completely destroyed just by foot traffic, there will be parties and there is nothing you can do about it. it will become a money pit

[Anonymous No.53831463]

>>53826372
>picnrel
based

[Anonymous No.53831522]

>>53831349
yeah dude just commit several felonies, heh so funny bro

[Anonymous No.53831535]

>>53822660
Anon go west Philly/university city over the temple area if OP Pic is where your doing this

[Anonymous No.53831547]

>>53831388
you need to get out a calculator and look at amortization schedules, and also look into paying off mortgage early. Paying min on a house is fucking retarded its like paying min on a credit card your asking to pay all the interest possible. The value of your home almost doesnt matter because its not something you can really sell because you immediately have to buy another home.

In 10 years or so the kids will be having this same discussion but about cars using the same logic. Should I keep uber/rideshare/bus cucking next 2 years or buy this expensive electric car it will only drop 10% value because the car market is so tight, what should I do bros?

[Anonymous No.53831566]

>>53831388
For sure I would pay it off early, household income is ~$170k/yr. I could personally put more than 50% of my income towards mortgage and be comfortable

[Anonymous No.53831580]

>>53831566
Meant for
>>53831547

[Anonymous No.53831598]

>>53831522
>watching cctv
>omg that chad is going to rape her
>bust in, save stacey, "my hero"
>get on news "omg ya I was coming by to check on properties and I heard some muffled screams."
> still get to keep videos of all the other rapes you didn't stop tho and stacey has consensual sex with you cause muh hero, but you cant cum anymore unless they are crying
C'est la vie

[Anonymous No.53831662]

>>53831566
nice, ya I did this kind of math on the housing im living in now. I could technically own it out right in 5 yrs, but why bother? I don't want to live here and I want to move in 5 years. But something could also come up before then.. I need to buy into an area with less blax and gunshots. I don't want to be a landlord. I think it all depends on your life style and want you want to invest in. You can invest in your house and fix it up increasing its value. You will just always lose money on it due to taxes though until profits are realized which could be a decade or more. I like more liquid shit like stocks ,crypto and gambling. Then I can make money on swings and shit now. I feel like a house is the last thing I should buy if I can help it.

There are 8 houses for sale on my .5 mile street alone in Houston. Half of them have been remodeled and been sitting for at least 6 months. The others still being remodeled or never were and waiting to be sold. I've seen 2 houses actually be sold on this street in last 4 years.