CS Possibilities - Posted by wonderboy

Posted by jeff on September 06, 2003 at 06:17:24:

I would also go slow with multi-familys. The turn over rate of tennets and vacancy rates are higher than with single family homes or townhouses. Other investors I know make good money off them and tease me that a real landlord doesnt just own SFH. I have had good luck with bank REO property. Ready to rent at about 10% below market. Happy Hunting.

CS Possibilities - Posted by wonderboy

Posted by wonderboy on September 04, 2003 at 18:08:49:

Hello folks,
I bought the Carleton Sheets course on ebay. The edition I have is about 3 years old. It’s been very informative, full of information and I enjoy Carleton’s teaching methods.

My question is this: In my area, 3-bdrm homes and similar are selling for roughly $120-$130k. Unfortunately, the average rent for the same setup is about $650-750/mo. Even with no money down techniques, I don’t see how to make this profitable. Even if I was to get a traditional lender to mortgage the property, I’m looking at $950-$1100/mo in house payments at 8 percent, which is conservative for investment loans in my area.

Therefore, if I’m looking at trying to do seller-financing, they’re going to want at least fair market interest rates or more, right? I can certainly see it being feasible if I could get them to carry the majority of the home value in a note at 3% interest… but what seller is going to be this kind??

I’m full of enthusiasm, but I just can’t seem to quite understand how to make a positive cash flow with the area I’m in. Any comments would be appreciated, and please feel free to email me at wonderboy1999@hotmail.com.



Re: CS Possibilities - Posted by dave

Posted by dave on September 08, 2003 at 19:53:51:

you may encounter 1 good deal a year. you have to search everyday. drive out weed out maybe score.
Two years ago i bought a 5000 sq ft lot for $10,000.00
20 min from manhattan. i am going to build two triplex. i will net $500,000.00. i met the broker at 10:30 pm.

Re: CS Possibilities - Posted by jeff

Posted by jeff on September 05, 2003 at 17:56:01:

I found a 10% down for 7% through a local mortgage broker. Fact is rents very from area to area. If you cant get cash flow where you live, try someplace else. That may sound like extra work, but neg. cash flow can brake you. I had a 80-20 deal and broke even for the first year until I could refi. I had other income property to keep cash comming in. The best way in a low rent/high cost area is to buy below market houses. 20% or so below market could get you a small cash flow. I dont like multi-family, but it may be the way for you to go. A duplex or 4 plex could be a good choice to create cash flow, but more landlord work.

Re: CS Possibilities - Posted by wonderboy

Posted by wonderboy on September 05, 2003 at 18:12:15:

Those are some good points. I’m thinking I may look more into multi-family properties and do a little more research. I think your sentiments on that are probably far more accurate.

I’m also thinking about speaking to a broker who I dealt with on a duplex I tried to buy last spring. From his viewpoints I think he might be willing to at least help me out trying to find seller-financed properties, or at least more ideal property situations. He’s the actually the branch owner for this particular realty franchise, so that might help. :wink:

Thank you for your suggestions!!!