I think what Michael was trying to tell you, is that unless your mortgage payments are substantially lower than your rental income, you won’t have any cash flow.
That could easily spell disaster the 1st time a Tenant decides to skip a payment, or two, or three! How would you make your payments?
You did not waste your $ on Carltons course, but my advice would be for you to learn as much as you can about the entire aspect of this business before you jump in with blinders on. A good place to start would be your county courthouse. Spend one day there meeting and talking to landlords who are there doing evictions.
The lessons you will learn could be priceless!
I’m new to RE and currently studying Carleton’s course. I haven’t finished it yet but I got so excited I started looking at ads and talking to people about two weeks ago (I am still in the 30 day trial period).
This is my issue. I came across a recently built BEAUTIFUL complex of townhomes. I have good friends who moved in two months ago (they are renting) and they tell me that with the exception of one other townhome the rest of the complex is empty. Seems the complex is almost too ritzy for the area, or poor marketing, whatever reason they can’t fill the homes. It is close to a hospital and schools and the freeway. The neighborhood is lower middle class with mostly renters in less ritzy apartment buildings.
I am a first time buyer with no cash, potential partners, and ok credit. I’m thinking it would be relatively easy to get them to come down from the 330k (3bd/3.5bth 2,000sqft) due to the vacancy rate. At the very least get a lease option. But I am so green, I don’t know if there is something I am missing. There is a investment club meeting in my area coming up in a week or so (it would be my first) but I want to know if I should act now. I think it would be very easy to rent this out but I read somewhere here that townhome complexes with a lot of renters are not as desirable. Any advice you guys have will be greatly appreciated. Also, please forgive the length of the post.
Jen-
nobody developers just don’t throw their money away especially on 330k thomes. You can try but if your not capable of making the monthly payment around $2,400.00 , no offense but the level of the buyers in this range can smell “newbie” and as well won’t take you seriously unless your already swimming in the same circles as them.I could be offbase here but I don’t think so, but if you live in a 300k home congrats and then go for it but if not, try starting out in the 80k-100k these homes typically sell in 30 days and are easier to make deals on.
just some some insight whos been there(6 yrs ago)
best regards,
MRG
I live in Los Angeles. If I went to the worst possible neighborhood and found a half decent property there it still would have a asking price of 130k. I appreciate your insight but it’s all location relative isnt it? For LA 300 is the top of the low end. Are you saying that I just wasted money on Carlton’s course? How can I make this work with no cash and decent credit?
