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Old 04-27-2018, 01:00 PM
 
Location: Living on the Coast in Oxnard CA
15,370 posts, read 25,579,836 times
Reputation: 19641

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Quote:
Originally Posted by Kavalier View Post
I don't know if it's a dream.



I think a lot of the scattered questions here are stemming from this premise: I have a sum of money; I don't really trust the stock market; I was told many years ago from a wealthy guy that buying land/reality was what he did with all his money.



.
I also know a wealthy guy that bought homes and is now very wealthy. Him and his wife spent 40+ years buying rental homes. They spent their money on the homes. Last I saw him he was driving the same 1960's era VW Beetle, and a 1970's era VW van. They also have a 1965 Ford Mustang. What they did was live way under their means and invested the money they made at work. At one time they owned 180 single family homes between Pasadena and Ventura Ca.

Could someone else do the same thing that they did? Maybe, maybe not. Realize that when they started buying homes the value of homes in California had not skyrocketed to where it is today. Also when they bought many of the homes they own banks did not talk like they do today. Back when they started the process of getting a loan was much different.

I know another guy that ended up buying 10 brand new single family homes in the mid 1970's. He ended up getting loans from 5 different banks. I don't know if the average person could pull that off today.
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Old 04-27-2018, 01:25 PM
 
24,885 posts, read 11,610,800 times
Reputation: 11621
Quote:
Originally Posted by CGab View Post
Rent to own is the biggest scam out there, IMHO! Of course it works for some, but very few. Most pay the owner a huge down payment and monthly rent, only to end up walking away with nothing because they still canít get s mortgage years later.
They didn't need a mortgage. As long as they paid every month until it was paid for they ended up with the house. The real problem for most people were things like divorce, and the need to move somewhere. Because until it was paid off they had zero equity. It was really great for people who couldn't get a mortgage, and who were getting their life put back together.

Yeah sometimes he would eat it-like the guy who ran out of money and used the insides of the mobile home to keep the fire going to stay warm......but generally it worked out ok for him.
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Old 04-27-2018, 03:31 PM
 
Location: Mt. Lebanon
1,793 posts, read 1,825,639 times
Reputation: 1745
Are you going to do the work on the house to flip it? If yes, then it's worth it. If not, probably it will cost you an arm and a leg to hire people to fix it up.

It also depends upon the condition of the house, but at this price I expect to have just the walls and nothing inside it.
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Old 04-28-2018, 10:56 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,112 posts, read 3,404,360 times
Reputation: 5638
Quote:
Originally Posted by SOON2BNSURPRISE View Post
I also know a wealthy guy that bought homes and is now very wealthy. Him and his wife spent 40+ years buying rental homes. They spent their money on the homes. Last I saw him he was driving the same 1960's era VW Beetle, and a 1970's era VW van. They also have a 1965 Ford Mustang. What they did was live way under their means and invested the money they made at work. At one time they owned 180 single family homes between Pasadena and Ventura Ca.

Could someone else do the same thing that they did? Maybe, maybe not. Realize that when they started buying homes the value of homes in California had not skyrocketed to where it is today. Also when they bought many of the homes they own banks did not talk like they do today. Back when they started the process of getting a loan was much different.

I know another guy that ended up buying 10 brand new single family homes in the mid 1970's. He ended up getting loans from 5 different banks. I don't know if the average person could pull that off today.
180 homes... how could they handle 180 calls in the middle of the night for a leaky toilet!

Jk. Many here on cd love to say they would never deal with the hassle of being a landlord.

Driving those old vws and a 65 mustang is pretty cool though
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Old 04-28-2018, 07:03 PM
 
Location: Minnesovia
2,457 posts, read 633,999 times
Reputation: 1505
Quote:
Originally Posted by aslowdodge View Post
180 homes... how could they handle 180 calls in the middle of the night for a leaky toilet!

Jk. Many here on cd love to say they would never deal with the hassle of being a landlord.

Driving those old vws and a 65 mustang is pretty cool though
As far as I know my grandmother (I don't know how many units or what capacity they were - but I think she had at least one "fourplex" I recall stopping by when I was a kid) had someone "manage" the properties or do various projects on the projects she owned.


I think you were joking, but I am just saying.
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Old 05-01-2018, 01:46 PM
 
110 posts, read 39,831 times
Reputation: 72
1. find out what renovated house goes for in that area

2. how much time and money would it cost you to renovate the house or to hire professional to renovate the place.

3. how much can you rent it for after renovation.

4. what's total cost of buying the property (include closing cost..etc)

then do the math. math part is easy, but getting accurate numbers from the beginning is hard, people a lot time underestimate how much it cost to make repairs, renovate things overestimate selling price or rent.

what some starter investor forgot to factor in are their own time when they fixing the house, if you spend 150 hours of your leisure time in fixing up the house, those are 150 hours worth of money depends on your job, and those should be considered as expense, i know young investor who would make more money if he just work for Home Depot with all those time he spend in fixing the house.

obviously the number varies based on city/state, but i normally aiming for annual 12-17% gross profit if i rent, 20+% return if i flip.

i am just regular family man who has full time job and make property investment and management as side job, so my strategy is very different than big investment company.
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Old 06-05-2018, 04:45 PM
 
Location: Minnesovia
2,457 posts, read 633,999 times
Reputation: 1505
My father just passed away. He was my best friend. He had a heart attack a day after Memorial Day. I have siblings but one of them lives several states away, and I don't know how on-board the other one is with me as to getting a property (house) to maybe rent to someone - anyone.


I have some personal information that I want to relay to someone who could possibly help me, but I don't know how much I'd like to put out in the open (though my level of anonymity here is pretty solid).


Does anyone have any advice for me? I want to get a house and rent it out. I don't make much money a year (by choice, kind of), but I will have something coming to me in my father's will I know that.


I don't have a lot of friends; my support system isn't very strong. I had money saved up.


If anyone could give me any advice or help, I'd be obliged.
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Old 06-05-2018, 05:06 PM
 
Location: The Triad (NC)
26,848 posts, read 57,874,473 times
Reputation: 29261
Quote:
Originally Posted by Kavalier View Post
My father just passed away.

I don't have a lot of friends; my support system isn't very strong.


I don't make much money a year (by choice, kind of),

but I will have something coming to me in my father's will I know that.



I want to get a house and rent it out.
If anyone could give me any advice or help, I'd be obliged.
Don't buy a house as a rental or even for yourself.
Don't make any other financial plans or investments either.


Focus on that "don't make much money" problem by increasing work skills.
Once you have that sorted out (~6-18mo's to be on track) then look around.
Don't decide anything deep before then.
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Old 06-05-2018, 05:08 PM
 
Location: The Triad (NC)
26,848 posts, read 57,874,473 times
Reputation: 29261
Quote:
Originally Posted by Kavalier View Post
My father just passed away.
I don't have a lot of friends; my support system isn't very strong.

I don't make much money a year (by choice, kind of),
but I will have something coming to me in my father's will I know that.

I want to get a house and rent it out.
If anyone could give me any advice or help, I'd be obliged.
Don't buy a house as a rental or even for yourself.
Don't make any other financial plans or investments either.

Focus on that "don't make much money" problem by increasing work skills.
Once you have that sorted out (~6-18mo's to be on track*) then look around.
Don't decide anything deep before then.

Getting on track will likely need some counseling help.
Don't cheat yourself by not getting it.
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Old 06-05-2018, 05:14 PM
 
Location: Minnesovia
2,457 posts, read 633,999 times
Reputation: 1505
Quote:
Originally Posted by MrRational View Post
Don't buy a house as a rental or even for yourself.
Don't make any other financial plans or investments either.


Focus on that "don't make much money" problem by increasing work skills.
Once you have that sorted out (~6-18mo's to be on track) then look around.
Don't decide anything deep before then.
Well I'm possibly literally going to be on the street once all this stuff is sorted out.


Got nowhere to go. So you think I should start renting a place myself and flushing that money down the toilet?
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