Real Estate Investment (Land/Renting/Development)

[Livecorpse]

So I've been reading about various types of investments lately, and I noticed we don't seem to have a general purpose real estate thread here.

-Does anyone here have experience with real estate investments?
-Is undeveloped land a good investment?
-How should someone interested in real estate investment get started?

 

[HOMO FOR LIFE]

So I've been reading about various types of investments lately, and I noticed we don't seem to have a general purpose real estate thread here.

-Does anyone here have experience with real estate investments?
-Is undeveloped land a good investment?
-How should someone interested in real estate investment get started?

I would start by asking people who has property already and get their perspective. I've done that.

Also hit up your local realtor and start getting the feel of the market.

Get some idea of what your qualified for if you want a mortgage.

Browse what kind of property works the best for you and what kind of rentors you want.

It's always LOCATION LOCATION LOCATION. Premium location means a quarter percent more often enough.

 

[Mediocre]

I was seriously considering buying a couple of properties and renting them out, I viewed 6 different apartments as I didn't want the hassle of maintaining a whole house (in my view it's easier), but then 'rona hit and saw how Landlords were basically fucked meanwhile my investment portfolio dipped in March and fully recovered, the rate of return differences seem minimal also.

I might consider just doing a buy 2 let mortgage instead of just fronting the money but I don't know, seems like a good way to pay for the apartment since I plan to go live abroad for a few years at least anyway.

 

[Getwhatyou]

I like cheap homes in a depressed town. People are trapped in unemployment and will always rent. Damage is usually holes in walls thst are easy to fix and the govt hand outs cover almost all damage anyway. And they get thier rent paid directly. 5% management costs however. Don't expect massive returns.

Wait a year buy the next one down the street with equity. Theoretically a slum landlord in 10 years.

Oh and don't directly manage these for the 5% management costs for a company you save so much drama having to deal with the literal scum of the earth.

 

[Complete Reprobate]

I bought a few acres right before the rona hit. It's in the middle of nowhere, walking distance from a little reservoir with some sweet views all around. Nice, quiet, off the beaten path, and isolated. I am going to throw an A-Frame onto the property, and do short term tourist stuff out of it, airbnb type stuff. The land set me back about 10k, and after all is said and done, I am looking at about 75k to 110k to get operational.

I got financially rona'd hard though, christ almighty.

E -

36 "A" Frame Cabin

www.lsuagcenter.com

This is what I'm going to put up. If you backtrack the links, the LSU Ag Center has a whole bunch of plans for houses, cottages, and a smattering of other stuff.

 

[Not Really Here]

As far as renting goes you really need to look into exactly how hard, and how much time it takes to evict a nigger who's not paying or damaging your shit.
Also, no pets. Someone who doesn't keep up with a dog or cat can leave thousands in damage from shit like piss damage.

 

[oldTireWater]

No better time than a bubble buy in.

 

[northstar747]

So I've been reading about various types of investments lately, and I noticed we don't seem to have a general purpose real estate thread here.

-Does anyone here have experience with real estate investments?
-Is undeveloped land a good investment?
-How should someone interested in real estate investment get started?

I can help you with that, I m gonna watch my power level alittle. But I ve worked with and dabble with land lords/property managers.

I knew I sweet old lady whose sadly no longer with us. She picked up a small single family home, for 60K. it rented for 1000.00/month minus taxes and insurance your looking at about 9500 a year in income not factoring in deprecations such as roof/havc and maintence

9500/60000= 0.15 or 15% return.

another property in the same area was gotten by another client for 89,000 and rented for 1150 month again minus taxes and insurance which rule of thumb for that area is 2.5 months rent

you get 11,000 a year income

so 11,000/89000=0.1235 so ROI is 12.35%

Same dude a few years later bought another house across the street, which wasnt too bad, but needed work "paint floor, had a improper addition which I removed"

he got that for 159, but put about 20K into it (I m estimating here)

So fuck lets say it 180

I am also guess at the rent to be about 1300

So 12350/180000=0.068 or 6.8% ROI

now in Ca if your not a company and its a single family house, you have alot of fucking leeway in regards to evicting people aka I want my house back to put my brother or relative in etc.

So the lesson from what I ve seen above is that these people paid cash, the ROI is very important to keep in mind and the cheapest house is the most valuable

multie family like duplex s are alittle more tricky cause while your number of tenats increases single family homes command a higher rent.

Some will say section 8 tenants are great cause you know the money is there, on the flip side I ve seen the whole "idle hands are the devils play thing and a distructive tenat will set you back a years rental income.

another thing is that FHA loans are super cheap but only go up to 250K. So all those properties listed above? yeah thats the new price for all of them. I dont blame people you can get a house for the cost of your rent payment. I m told theirs a bidding war going on right now for any house just under 250K

In this way the goverment has made the market.

Should you become a land lord?

Well another thing my example shows you is this you make money depending on the price and ROI.

Also are you a handy man, are you able to do the DIY stuff, do you have access to someone who can?

BUT HERE IS THE BIG TAKE AWAY YOU NEED A PERSON WHO CAN PROPERLY VET TENATS NOT JUST DO A CREDIT CHECK BUT IS ABLE TO UNDERSTAND THEIR SITUATION WHAT THEIR INCOME NEEDS TO BE ETC.

BECAUSE IF YOU HAVE A RUN OF 2 -3 TENATS WHO DONT PAY, AND TRASH THE PLACE

AND I VE SEEN IT A FEW TIME NOW WHERE THATS HAPPENED AND THE OWNER BEGS FOR SOMEONE TO TAKE THE RENTAL OFF THEIR HANDS.

finally there is money in real estate I mean i ve done work for a guy who got a shitty duplex for 100K farmed 1400/m rent off it for 5 years and then sold it for more than double what he paid for it.

Oh and undevolped land is a long term thing I m not really up to speed on it.

 

[Stoneheart]

I own some woodland in eastern germany. it was dirt cheap because it was wood farmed and hit by a storm. It pays for itself because of a couple of government and EU Programs to return woodlands back to their natural state. its return on investment is only viable because of some local farmer who rents it in mast years for his organic pigs(which is allowed under the programs.).

 

[Picklechu]

I bought a condo a couple of years ago, and I've been renting it out for the past 7 or so months since I moved for school. So far, it's been great, but then again it's a fairly upscale-ish area that draws a lot of educated people in their 20s and 30s. I'm not sure if I'll ever live there again (I'll just have to see what kind of work I find once I'm done with my program), but I definitely don't see any reason to sell on the horizon, so I'll probably continue like this for the foreseeable future.

I like the idea of buying some cheaper houses (sub $130K) in middle-class/lower middle-class neighborhoods and renting them out, but I honestly don't think I could get anything right now even if I wanted to. Everything in that price range seems to be selling the second it goes on the market.

I've got some timberland I inherited a few years ago, but it's still got at least 10 years before I can actually get any money out of it. I've thought about buying more (cheap) land in different places as a sort of longer-term investment, since they aren't exactly making more, but I'm still undecided.

I've also been thinking on and off about buying a cheaper house (even a manufactured home if it were nicer) directly on the water somewhere, then AirBNB-ing it out, but I'm not sure yet.

 

[XYZpdq]

one time I was listening to Clark Howard and the subject came up of "I'm a landlord and I heard you do that on the side, so like, uhh... what should I do when the tenant is dead" and Clark was his usual chipper not-quite-Barney Fife and all "ohh! A dead body! Yeah, that's unfortunately something you'll have to deal with occasionally!"

 

[HOMO FOR LIFE]

Houses here are being overbid right now....shitty two bedroom house selling for $199k.....overbid at $300k..

You can't make this shit up..people are making worst mistake of their lives...

 

[Uncle June]

I've been toying with the idea of renting out my townhouse in a few years. I'm being a pussy about it though because of tennant horror stories I've heard in the past.
Was thinking about getting a property manager but that would leave me with a net 0 profit considering I have a 15 year loan. Still want to live here for a while longer but it'd be nice to get some passive income.

 

[Bassomatic]

No better time than a bubble buy in.

I speak from exp in commercial but, this isn't always true because prices drop when people aren't renting so you need to fork up a shit ton of cash unless you find PULs (pick up loans) and then hold it till things settle up.

I have been pounded like cheap meat this year in CRE and can't get a penny of bail out because I'm the big bad man who "owns things". I would not look into any RE etc stuff unless you have cash to burn waiting right now.

Home prices are going and holding up, so again for basic real estate you're buying on top of a bubble with stronger renter laws coming in so yeah pay over value and can't kick bad tenants. Not how you want to invest.

I don't want to shy people away but some industries (one I was in exactly vs CRE over all ) was just a whole sale slaughter and it really sucks and I'd suggest to stray away and research right now.