Rentals in hot area - Posted by Jerry

Posted by docniss on June 22, 2005 at 21:30:22:

I too have excellent credit and good income, I am buying houses from another investor right now and the broker I am using gave me an approved pre-approval amount, but also told me that # doesn’t mean anything, as long as the #'s are right on the houses I could pretty much get what I wanted. So, contact a broker, I have found that they are much easier to work with. I just bought a house last week and we are going to close in the next 10-14 days.

Rentals in hot area - Posted by Jerry

Posted by Jerry on June 22, 2005 at 21:17:29:

I am preparing to buy some new homes (and a townhome) that are all in pre-construction phases. They are in very hot city and this community will be one of the biggest around with schools, parks, etc. By the time these homes are built in the beginning of 2006, will they have most likely appreciated? I know in a couple of years they definitely will. Also, I hear many people who own rentals end up with 20 or 30 homes. How can the banks lend this much to someone when they see they have so many homes already? I want to own about 20 and rent them all but dont know if the banks will do this?? I have a perfect credit and good income. Any thoughts?

Re: Rentals in hot area - Posted by ken in sc

Posted by ken in sc on June 23, 2005 at 06:40:41:

First, yes you can buy 20 to 30 rental houses. There are many different loan programs and it is possible. I have more than that amount now.

Second, you just don’t know about appreciation. You can guess, but you don’t know. My strategy is to buy in different areas of my city so that I am bound to own some that do better than others. Buy properties that you think will go up, but diversify around your city. And buy properties that cash flow after expenses, so that even if the appreciation is not what you hope, they are not costing you in neg cash flow and are at least paying for themselves. You can always 1031 exchange a property into another if you don’t like how it is performing.

So, get started today! You won’t be sorry.


Interesting… - Posted by sans

Posted by sans on June 23, 2005 at 01:04:54:

Indeed. that’s a big plate to fill. I might use that kind of excitement as an indicator regarding this market. Can I ask an honest question?

Did this excitement come from a seminar or mail order class?
Don’t get me wrong…I made my nest egg on RE. Not being ficecious. (to lazy to look up spelling)