Newbie needs help - Posted by A.J.

Posted by Utah Investor on February 21, 2002 at 22:29:58:

Why would you want a rental?

To net $100 - $300 a month?

Is that amount going to change your life?

Wounldn’t you rather flip it (sell it) and make $20-40K?

Now that would change your life!

Flip it and have cash to do more deals.

Best Regards,

Utah Investor

Newbie needs help - Posted by A.J.

Posted by A.J. on February 21, 2002 at 15:33:08:

First off, great site!!! I found it 4 days ago while researching properties in New Orleans(I live in New York). I need a little help.

I am interested in purchasing a rehab project in New Orleans. My question is this: has anyone ever done something like this without living in the state or city? If so what were some of the the pitfalls or upsides of the the deal. Any experiences that you would like to share would be appreciated.

now as far as me, I have construction workers in my family that work in N.O. I also have a friend that does some investment in N.O. This property would be a buy and hold. I would use it as a rental property. My family would accept the rent payments and do any required fixes with the minimum of costs.

What are your thoughts on something like this?
Thanks in advance.

Re: Newbie needs help - Posted by Ian(Honolulu)

Posted by Ian(Honolulu) on February 22, 2002 at 20:29:54:

I disagree with Utah Investor unless you need some upfront cash. If you see that the figures are nice and offers a good chance of appreciation usually the only major pitfall of out of state investment is having to hire a management company which could take 10-15% of profits. In your case it seems like your family would take that responsibility. If you’re making some positive monthly cash flow and like I mentioned earlier appreciation is good (perhaps 6-10% yearly) buy and hold could be very lucrative. Just my 2 cents.