Real estate as a investment ??

Has always been good in the past . I think its a great time to be picking up some investment properties . With the down turn in the real estate market the last couple of years , if a fella has a few extra dollars to invest , He should make some very decent money . I have found that rental prices have NOT gone down but up in our area . I have people screaming for me to finish my new apartment so they can lease it .

Are you seeing this trend in your area ?

I do not rent "low end" fixer uppers . Most of my stuff is on the higher end . I lease everything with a locked in 12 month lease at minimum . I also give them a option of Lease /Buy within 12 months at a locked fixed price and I will do the financing at 2% over current Bank Rates .

I have a couple of cash-strong friends who invest in income properties, and they have increased their positions significantly in the past year. One fella routinely gets calls from the banks to see if he's interested in particular forclosures. As you said about rents, that's what's making it so lucrative. they plop down 20% and walk away with a positive cash flow. If they can't make money right away, they walk away from the property.

The biggest grab-up is in Euclid, Ohio where 3 bedroom, 1-1/2 bath homes with full basement are selling in the $30's, and are renting for $800 + utilities. Tenant is responsible for lawn mowing and snow removal. Sweet deals.

JEV said:

I have a couple of cash-strong friends who invest in income properties, and they have increased their positions significantly in the past year. One fella routinely gets calls from the banks to see if he's interested in particular forclosures. As you said about rents, that's what's making it so lucrative. they plop down 20% and walk away with a positive cash flow. If they can't make money right away, they walk away from the property.

The biggest grab-up is in Euclid, Ohio where 3 bedroom, 1-1/2 bath homes with full basement are selling in the $30's, and are renting for $800 + utilities. Tenant is responsible for lawn mowing and snow removal. Sweet deals.

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Yep ! That is basically what I am seeing around here to . Some of these folks I lease to our making huge money in very secure jobs and just got caught up in all this real estate depression and are now WAY upsjde down on there homes value .
Many just walked away and let the bank take it all . They were not behind on their payments !!!!
They would rather lease or rent at a fixed rate and to hell with what the housing market does .

I'm looking at buying some apartment buildings or complexes. I do not want to touch single family homes.

Melensdad said:

I'm looking at buying some apartment buildings or complexes. I do not want to touch single family homes.

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I have not seen the price reduction on Apartments that I see on Single family homes . That makes sense as more people seem to just be renting around here to try and save on cost .

Leasing is better than renting to me . It seems to capture a better financially responible group than straight renting does .
Of course I go over the credit reports and do check past history very closely .

I like leasing to older folks 60+ plus .They are just so much more responible and take better care of the places .

BigAl said:

Has always been good in the past . I think its a great time to be picking up some investment properties . With the down turn in the real estate market the last couple of years , if a fella has a few extra dollars to invest , He should make some very decent money . I have found that rental prices have NOT gone down but up in our area . I have people screaming for me to finish my new apartment so they can lease it .

Are you seeing this trend in your area ?

I do not rent "low end" fixer uppers . Most of my stuff is on the higher end . I lease everything with a locked in 12 month lease at minimum . I also give them a option of Lease /Buy within 12 months at a locked fixed price and I will do the financing at 2% over current Bank Rates .

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I've found the same in my little microcosm of our country. I've not ever strayed into the high end stuff like you're talking about, but I stay with properties that will be out of range of Sect. 8 renters. I intend no prejudice in a racial manner by that statement, all who have caused problems have been pure white (trash) people. My prejudice is against those who pay nothing for rent from their own pocket and know they can demand almost anything and tear up almost everything with no repercussions.

I am considering my first "high end" home project. It really won't be a high end home, but more of an average price home but of new construction with high quality materials. My thought is that I have 3 more kids to go through college and we have a very good college right here in our own home town. However, part of the 'allure' of college is for kids to break away from their parents.

You see where I'm going now; build a decent 4 bedroom home on the roughly 6 acre lot and let my kids live there while they attend college and, after carefully screening them, allow them to have roommates who will have far better amenities than a dorm room, charge them less than they'd pay for their dorm room, and they'd still only be about 12 minutes from campus.

I'm not trying to hijack your thread Al, but what do you think about that? I have all of the equipment, tools and ability to build about 90% of the home and some very good connections to help me with the part I can do as well as do the part I cannot do. Most want to trade off labor rather than be paid. Being that I own enough equipment to have my own small excavating and landscaping service, they want me to do that sort of work for them in exchange for HVAC, plumbing and electrical.

They will allow me to do most of the plumbing and electrical as long as I follow their direction to abide by code and they will put the finishing touches on those parts and use their licenses and pull the permits. Think this sort of project would work?

Dargo said:

I've found the same in my little microcosm of our country. I've not ever strayed into the high end stuff like you're talking about, but I stay with properties that will be out of range of Sect. 8 renters. I intend no prejudice in a racial manner by that statement, all who have caused problems have been pure white (trash) people. My prejudice is against those who pay nothing for rent from their own pocket and know they can demand almost anything and tear up almost everything with no repercussions.

I am considering my first "high end" home project. It really won't be a high end home, but more of an average price home but of new construction with high quality materials. My thought is that I have 3 more kids to go through college and we have a very good college right here in our own home town. However, part of the 'allure' of college is for kids to break away from their parents.

You see where I'm going now; build a decent 4 bedroom home on the roughly 6 acre lot and let my kids live there while they attend college and, after carefully screening them, allow them to have roommates who will have far better amenities than a dorm room, charge them less than they'd pay for their dorm room, and they'd still only be about 12 minutes from campus.

I'm not trying to hijack your thread Al, but what do you think about that? I have all of the equipment, tools and ability to build about 90% of the home and some very good connections to help me with the part I can do as well as do the part I cannot do. Most want to trade off labor rather than be paid. Being that I own enough equipment to have my own small excavating and landscaping service, they want me to do that sort of work for them in exchange for HVAC, plumbing and electrical.

They will allow me to do most of the plumbing and electrical as long as I follow their direction to abide by code and they will put the finishing touches on those parts and use their licenses and pull the permits. Think this sort of project would work?

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EXCELLENT IDEA !!! My Son went through college renting a room like that with 4 other guys . Private locks on each bedroom door . It worked very well . The one guys parents owned the place and he made damn sure it was always kept nice . Sort of a "on site caretaker" .

I had three friends who put their money together and bought a big old 3-story house near the campus of the University of Toledo where their kids attended. they kicked in some money and threw a coat of paint on it and updated the bathrooms (critical for girls, not so much for boys). Their 3 kids had a place to live, and they had 3 more tenant students who basically paid the mortgage for the investors. When the kids graduated they sold the place and made a really nice profit on it, as housing was in high demand near the college. Yes, it's an old trick to get free housing for your students. Go for it.