Guys, give me some guesses on the housing market

detox,first off watch the fbombs especially if you get in real estate. they have ethics here,belevie me you fbomb any agents or clients,they will run your ass out of there.ktrain im real estate in oc. theres alot great deals example 2bed 1,5 bath in hb good neighborhood bank owned 6 miles from the beach $220,000. 10% down. 30year 4.0%,15 year 3.25%.

There are plenty of cash only houses. A house has to be in pretty good condition to pass for a FHA loan. I'd say most people are trying to put down 3.5% and get the FHA.

I might have mentioned this before but i was talking to a real estate broker in Charlotte and he put me on a 'distressed property' list.

I'm looking at it right now. You could go on Trulia.com and look around.

3 BR, 433 Oakdale, Charlotte NC asking 35,000. There's honestly 10 of them between 20k and 40k.

The final goal is to hold and cash flow ... but, i'd like to be able to hold a good amount of them ... so i need more cash.

I also got my RE license in the middle of this. That was easier than expected. Can't hurt to have.

I'm still basically trying to pull off the same plan, it's been months now. That's why i got my RE license ...

KTrain, have you read 'Rich Dad Poor Dad'? The best imo. Nice and simple.

Hope everything is going well with school.  

I try to leave 'I_Need_A_Detox' at the door.

You might be surprised what you qualify for. For the lowest income, the best move would be a 3 family FHA owner occupied. The bank will use 75% of the estimated rent. So if you bought a place that is getting $1,400 a month in the other two floors they will add $2,100 a month to what you can afford.

 

Alias.

State an opinion coveringspreads.

Alias? Why would i be an alias? I have no problems with you at all? I don't even know anything about you? Sir i apologize i didn't give an opinion. I was reading your thread and decided to check and see if that emoticon would work and it did. It was not directed at you and i had no intentions of insulting you at all. Sorry about that.
I would say 10 years is about right sir.

That's a good emoticon.

IMO ... buy until 2013 ... hold, cash flow ... sell in 2021.

With the banking issues of 08 it has become a renters wet dream. People cannot get financed with the stricter banking guidelines meaning there are more valuable renters out there. 

If you have the cash ...real estate is a 10%+ yearly return in the current markets I am in with 50-100% long term return.

With interest rates low its a great time to borrow and add investment properties to anyones portfolio.

Florida is a great place to invest right now... market is saturated with foreclosures and properties are selling for half of what they were 4 or 5 year ago.  You can either rent full time or rent just during the tourist times to gather the income for taxes and upkeep.

Real estate is one of the safest and best long term investments... is only so much land and as the population continues to grow the demand will continue to grow.

 

It might be a good play to pick up a few rental homes in towns where major army bases are located. IF, you think that our troops are going to be brought home in the near future. Buy now and sell in 2 years, housing should appreciate in that area with soldiers having more tax free income and you won't have to pay capital gains. It's just a thought.

Right now I live in a college town in Georgia and if you know what you're doing (which it sounds like you do) college towns can also be a great place to have low investment rental homes. As long as the property is close to campus and not a total dump you're pretty much set. Parents pay the majority of students rent which typically means it's never late. The only downfall to this is that you will have a higher turnover rate with people graduating and such. My landlord which is also a friend of mine bought the house I live in for $98,000. It's a 4 bedroom 2 bath house. He has had the house full since he purchased it in summer 2009. I pay $300 rent/month + utilities which is much less than anywhere else close to campus. You can do the math yourself, at $900 (3 rooms x $300) a month in rent plus he is able to live somewhere free it's a great deal. Hire a management company if you don't feel like messing with it.

My friends house was just taken by the bank if anyone is interested in a 4 bedroom house with grandmothers sweet a block from campus. If I could afford it I would buy it. If anyone wants more info on that let me know. It's just one of those situations where you think to yourself, damn, I wish I had the cash to buy that because people will always live there as long as it's still standing. That was alot, sorry, the adderall got my brain flowing.

great comments guys.

If anyone interest in invest, invest in single family home, stay away from Condo especially condo conversion.

I have invested in and sold 2 houses. It worked out great. They were both multi families. Just my experience.

The hearing was tonight at 7.

They passed it.

I can legally turn my 2 into a 3 family.

Now i need to either make it into 3 condos and sell them seperate or just sell it as a finished 2 family with the rights to make it into a 3 and not put another penny into it.  

I need to talk to some brokers and some smart guys.  

Heading in the right direction.

 

Thanks man.  

I know it was a step in the right direction but now i have so many options.

1. Make 3 condos and sell them individually.

2. Don't put another penny into it. Sell it as is ... A finished 2 family with the rights to make it into a 3 family.

3. Sell it as a finished 3 family. To turn it into a 3 family i need to add a sprinkler system. That's 10k min. So it would probably cost 30-40k to do it over.

4. I'm sure there is another angle.

Do you guys know what kind of person i should talk to about this?

A Real Estate broker? A financial planner? ......... ?

This is new to me.

Maybe he knows that he will cash flow. If you're in a cash flow position ... you can just hold your property when the market goes way down.

He could have been wiped out though.

I need wallstreet, KOAJ, etc to say something about post #69.

Who do you talk to about this stuff?

Man, i'd pay the right person 500 a hour just to get pointedin the right direction.

The right direction is the key.

Slow down you seem like you are getting pretty worked up over this. Don't bring emotion into the equation.

It's a simple risk/investment vs. reward. It all comes down to numbers. Also time invested if it matters to you. Do you want a quick out and move on to the next project or are you willing to put in the time to extract the highest possible return and would it be worth it to do so. Is the additional time invested going to pay off significantly enough or would you see a larger profit selling as is and move on to another project?

Time is an undervalued commodity in real estate investing. Where is your time better served 1 2 3 or 4? Invest your time in the condo project or take the quick out, time saved and profit to invest in a future project. Only you can decide this one.

1. Make 3 condos and sell them individually.- Whats the projected ROI to complete this project. What will each unit sell for. Do the math...

2. Don't put another penny into it. Sell it as is ... A finished 2 family with the rights to make it into a 3 family. See above, with the added option to convert for a future buyer should add some value. Network with investors, investors often sell projects to other more experienced investors either because they bit off more than they can chew or their time is better spent elsewhere.

3. Sell it as a finished 3 family. To turn it into a 3 family i need to add a sprinkler system. That's 10k min. So it would probably cost 30-40k to do it over. - Again Risk vs. Reward these are questions only you can answer

4. I'm sure there is another angle.- Keep it as a rental. Leverage the property to take on another project, rinse repeat and build a substantial portfolio over time.

It is all a numbers game, keep emotion out of it. Risk vs. Reward. Remember your time is a valuable investment as well it should be treated as such.

Good luck to you sir

Thank you sir. Perfect!

Detox : the housing market is no where near bottom yet. i think we have another 30% to go but real estate is realtive to location so knowing your area is the key. a good way to look for value is knowing the area and look at the tax records look for the selling price before the bubble happend, pre 2003 selling prices. bubbles always retrace to their beginning.