I would like to start investing in real estate.

[Anonymous No.55579648]

Anon bros let me run something by you. I currently have $40,000 in savings (cash). I would like to use that money to take out a secured personal loan for $23,000 at a favorable interest rate (say 5%). I would then like to take that money use it as a down payment on a rental property valued at $117,000 out of state. Some back of the envelope math says i'll end up paying roughly $930 a month (personal loan + mortgage at 7%). Assuming i can find someone to rent the property for $1100 a month (average rent is $1400 for the area), why shouldn't i do this?

[Anonymous No.55580019]

>>55579648
You should as long as you know the risks. Rentoid not paying or having maintenance to pay are your risks. So check the roof foundations n shit so you don't get surprised with a 20k repair job

[Anonymous No.55580090]

I'm doing a courier job and I will be on the clock 24/7 for long drives. I will make around $2500/wk.

[Anonymous No.55580108]

>>55580019
Rentoid not paying isn't a huge concern? I own my current home outright, and even the lowliest amazon wagie job pays $3000 a month. I could sublet a room of my current home and make the monthly nut that way. Unexpected repairs would be a huge pain though, you are correct. I guess my main concern is why aren't more people doing this? It really feels like an incredibly quick way to amass a portfolio of homes, but there must be some kind of catch I'm not seeing.

[Anonymous No.55580151]

>>55580090
I will only work for 1 month though.

[Anonymous No.55580172]

>>55579648
I have the same ring as her I think it makes me look cool

[Anonymous No.55580176]

>>55580151
that doesn't sound like too much money after taxes anon.

[Anonymous No.55580264]

>>55580108
There's always some risk of not getting rent but that can be lowered by filtering them.
Why more people don't do landlording? Because being a landlord is still a job with its risks and manhours, even if you don't do the repairs DIY you still spend time and money managing (and get risks) getting quotes, having knowledge of buildings etc. most of people want an almost finished house that you just decorate. There's your opportunity with the associated risk.

[Anonymous No.55580316]

>>55580176
Yeah, I'm going to collect neetbux instead. Thanks for the tip, fren.

[Anonymous No.55580429]

>>55579648
I'm doing the same as OP, but I'm not taking out a loan. I'm saving up money from my neetbux so I can buy a house and rent it out. Real estate investing is exciting. Landchads rise up!

[Anonymous No.55580465]

>>55580172
>her

[Anonymous No.55580469]

>>55580429
i thought about that as well (my money not neetbux) but if you use those neetbux for the down payment you're out the neetbux for future use. whereas with the loan you still have ready access the bux as they're merely collateral.

[Anonymous No.55580509]

Specifically looking at this property. As long as the monthly payment is under $1000, I can make it comfortably literally recycling used beer cans on the side of the road. The area itself seems okay? I hear it's meth heavy. $1200/mo firm! I know what i have!

[Anonymous No.55580807]

>>55580509
>built in 1937
Buy a plot of land and have a house built from zero. Don't be a massive retard and buy a near 100 yo. house

[Anonymous No.55580829]

>>55579648
horrible investment right now. better off buying tesla chainlink nvda or even pltr. i’m not even joking you will be massively underwater from the get go and have constant costs.

[Anonymous No.55581144]

>>55580807
there's definitely been some work done on it since then.
https://www.zillow.com/homedetails/64181-Watsonville-Rd-Coos-Bay-OR-97420/75134479_zpid/

>>55580829
elaborate. The monthly nut on the borrowed money to buy this thing is under $1000 ($930). If i can refi the house once interest rates aren't retarded it'll be in the $700 range. If i can have it generate $1100+ in rental income from the start i'm never losing on the property.

[Anonymous No.55581937]

>>55581144
First of all, you have to check the rent price for similar houses (location, sqm, looks,…) and the rent displayed online is in many cases an overestimation, so deduct 20% to be safe.

In your case, judging by the location and house, I would say 850-950 average rent.
Also you should only count 10months per year, since you will use atleast 2 months rent/year for maintenance etc.

Trust me, I am renting 8 houses and 4 apartments and I am flipping houses for 9 years now. One thing I learned the hard way, it’s easy to calculate yourself rich, but in almost every case the math is not close to reality. Always deduct 20-30% to have a realistic view and not be disappointed afterwards.

[Anonymous No.55582345]

>>55581937
at last some insight ty anon. what do you think about the overall loan structure/plan? Seems like having an over collateralized loan might be a way to secure favorable interest rates for a down payment no?

Even at $800, if I only need to come out of pocket $100 a month, it's still a good deal no? As soon as i can refi the property to something under 7-8% it's a cash positive investment.

[Anonymous No.55582399]

>>55579648
When you ask a bank for a mortgage they will say " I see that your deposit is borrowed money". And they will decline you.

[Anonymous No.55582423]

>>55580108
ok what if I just you know
Don't pay
How many months do you think it takes for you to evict me?

[Anonymous No.55582432]

>>55581144
>buy stock and coin
>line go up
>none of the legal risk and expenses that RE comes with

[Anonymous No.55582468]

>>55582399
the deposit will be cash though. it would come from a personal loan on $40,000. The hope would be that if I ask for a $20,000 loan on that $40,000 I can secure a 4% or lower interest rate.

>>55582423
I thought about that. My overall monthly payment for the property will be under $1000. I currently own my own home outright. If I get a McJob or an Amazon warehouse job, 1/3 of my pay can cover it.If I rent out a room in my house it will pay for the mortgage. If I collect cans off the street for the month It will cover the mortgage.

>>55582432
I want land. they're not making any more of it. In a pinch i can live in it as a cuck shack. I can make it my main residence and enjoy 0% sales tax because it's Oregon.

[Anonymous No.55582521]

>>55582468
you can buy more land with more money from buying stocks midwit chudoid

[Anonymous No.55582560]

>>55582521
what if i get rekt because i bought the wrong stock? what if the $100 a share stock i bought is only worth $12 10 years from now? I can't build a shelter with printed out paper stock anon. I can however collect rent for the rest of my life, and for the rest of anyone who inherits my home(s) life. Or i can even live in it.

[Anonymous No.55582583]

>>55582560
what if your meth shack burns down? what if section 8 opens up next door?

[Anonymous No.55582609]

>>55582583
i can still rent it to meth addicts or collect insurance on the burned down structure. Have insurance build me a shiny new house and then sell that.

[Anonymous No.55582808]

Learn about it. Start with Robert kiyosaki, he's very entry level and makes things easy to understand. Trust the advice of the experts, if someone doesn't have at least 100 million to their name through real estate don't pay attention to anything they have to say about it

[Anonymous No.55582842]

>>55582609
I'm watching a talk show about real estate right now with a few big real estate investors and they say, flipping real estate is the way to go if you don't know the legal ins and outs. Or, hiring a very competent property manager that is trustworthy. To get into it and start learning about real estate and how it works, flipping is a great way to get into it. But going with a ((big)) investment from the beginning is a bad idea. Maybe if you get one house and rent it out then this could help you understand how it works some too, but start small. You don't want to get into something big without a good amount of knowledge.

[Anonymous No.55583105]

>>55582842
that is the idea. I'll never have a monthly payment greater than $1000 which is an amount of money I can pay for the remainder of my life with ease. I'm hoping to make this initial purchase into profit generating asset as soon as I possibly can.

[Anonymous No.55583381]

You need to think about opening an LLC and umbrella insurance and having money stashed for repairs, immediate and near term. Sure you can make money and you'll have good tax breaks from it but be aware.of all the costs involved and do it right. If you haven't,.reach out to a lawyer who specializes in this. He may offer you some good legal advice on proper steps so you don't end up spending more later.

[Anonymous No.55583442]

>>55579648
sure.
1.go back in time
2.invest in RE

[Anonymous No.55583502]

>>55583381
I do wonder what kind of tax bullshit I'll get into with having a property out of state (in CA). Good advice, ty kind anon.

>>55583442
$117,000 is a very reasonable amount of money for a property.

[Anonymous No.55583738]

>>55579648
Wow what a good actor
Pretty amazing that women with no training can do a much better job entertaining ppl on tiktok
So glad the gatekeeping is over

[Anonymous No.55584116]

>>55583738
she's cute.