Posted by DavePA on February 12, 2002 at 16:28:10:
I would study the area you are talking about a little more. It might be harder to put tenants in houses that have a high rent, depending on the area. I would maybe look for a local investor and gather some advice from them. But, I wouldn’t use ANY of that money you received!! Just my .02 Good Luck, dave
PLEASE, PLEASE, PLEASE HELP - TOTAL NEWBIE - Posted by Gary O
Posted by Gary O on February 12, 2002 at 14:27:22:
I was wondering if anyone out there ever invests in new homes in a new developments. There are several small subdivisions (all track homes) where I live, new ones going up daily. Most of these homes are around 1200 s/f and are listed around $100,000 - $110,000. If you could purchase two - three of these homes for about $90,000 - $95,000 apiece would this be a good deal for rentals or L/O’s. I was thinking that it would be because they are new homes and you therefore would not have the hassel of repairs (or as many repairs). Also for this town these would be a little higher end rentals and therefore you may not have the problem with low class tenants (as much). Please give me your input. Also, what I have is about $50,000 cash from my mother that sold her rental and wants to reinvest it all to avoid CG. Please,Please,Please I need input. I’m totaly green to this stuff, but desperately want to learn.
Re: PLEASE, PLEASE, PLEASE HELP - TOTAL NEWBIE - Posted by Aaron
Posted by Aaron on February 13, 2002 at 24:18:37:
The numbers don’t add up real well on those houses, you will have minimal cashflow on rentals, and unless you wanted to do a L/O to a buyer with credit problems and help them get a loan you might want to look into a different type of market. The big problem with new developments that I have run into is, until the development is entirely finished, you are stuck with taking less than market value for your property when selling (unless you use some creative financing plans for buyers that can’t qualify for a regular loan), meaning, someone with good credit can easily purchase a brand new home and have it built to their liking for about the same price as you are trying to sell yours for, until the development is finished.
DON’T PUT ALL YOUR EGGS IN ONE BASKET!!! - Posted by RR
Posted by RR on February 12, 2002 at 18:48:06:
NT
Re: PLEASE, PLEASE, PLEASE HELP - TOTAL NEWBIE - Posted by Jack
Posted by Jack on February 12, 2002 at 16:56:59:
“Also, what I have is about $50,000 cash from my mother that sold her rental and wants to reinvest it all to avoid CG.”
I think a 1031 exchange is about the only way to do that when you sell a rental…and then you don’t avoid taxes, you defer them.