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Housing Rolling Along 2
- Thread starter Covertibility
- Start date
Claims TOTAL cost was 500K, that would include the land purchase.
So I ask again, why would you spend 1 million on something it costs someone else 500K to deliver to you?
So I ask again, why would you spend 1 million on something it costs someone else 500K to deliver to you?
Quote from Mvic:
The builder who sold them still made out very well as his total cost was no more than $500K on each property. [/B]
Quote from Son of a Gann:
you have to own land to build on it.
This is a little off-topic, and this question will eventually get buried under an avalanche of arguments about how dire the housing bust is, so I figure no harm in asking here. I respect the hell out of you guy's viewpoints even if I don't always agree.
I'm looking at taking a very big bet (for me) by buying a small apartment complex. This is contingent on some stuff, but it could happen. Trouble is, that cash flow in the short run will be tight. Real tight, but it will cover itself. Assuming that we're in a "typical" flyover state area, do you all think this is a bad idea or a good idea right now? My reasoning is that rents won't drop, and interest rates may drop a little bit.
SM
I'm looking at taking a very big bet (for me) by buying a small apartment complex. This is contingent on some stuff, but it could happen. Trouble is, that cash flow in the short run will be tight. Real tight, but it will cover itself. Assuming that we're in a "typical" flyover state area, do you all think this is a bad idea or a good idea right now? My reasoning is that rents won't drop, and interest rates may drop a little bit.
SM
Are there a lot of apartment vacancy's in the area ?
Are most of the present rents @ or below market rent ?
Lots of rents below market would give the present tenants incentive to stay and even if they did leave it would be great for you.
I would not base any of my decision on where interest rates may go, it's an unknown.
Out of curiosity how many units is a small apartment complex ?
The larger ones maintenance/repairs could be a huge variable.
You mentioned it would cover itself.What % down is required for that to happen ?
What is a flyover state ?
Good Luck
Are most of the present rents @ or below market rent ?
Lots of rents below market would give the present tenants incentive to stay and even if they did leave it would be great for you.
I would not base any of my decision on where interest rates may go, it's an unknown.
Out of curiosity how many units is a small apartment complex ?
The larger ones maintenance/repairs could be a huge variable.
You mentioned it would cover itself.What % down is required for that to happen ?
What is a flyover state ?
Good Luck
Quote from Smart Money:
This is a little off-topic, and this question will eventually get buried under an avalanche of arguments about how dire the housing bust is, so I figure no harm in asking here. I respect the hell out of you guy's viewpoints even if I don't always agree.
I'm looking at taking a very big bet (for me) by buying a small apartment complex. This is contingent on some stuff, but it could happen. Trouble is, that cash flow in the short run will be tight. Real tight, but it will cover itself. Assuming that we're in a "typical" flyover state area, do you all think this is a bad idea or a good idea right now? My reasoning is that rents won't drop, and interest rates may drop a little bit.
SM
To answer good or bad you could use more info. How is the local economy? Can you find out from realtor.com the or some realtor the level of vacant properties. Here in my part of Denver for home sales 90 days is avg. In So Cal , when hot, it was 1 week, now I am not sure. That kind of info will help you make a better decision. Will the tax benefits help you overall by doing the deal?
The most important thing in renting is computing your cap rate relative to other local rental markets. After that it's making sure the seller is not lying through their teeth on revenues, occupancy rates and maintenance costs. Many managers let the place run down so bad that true maintenance costs are deferred and they come in as future shock that takes years to recapture. Do a very good due diligence with a contract cancellation clause that permits you to get 100% of deposit for any reason not to the satisfaction of buyer.
TS
TS
Quote from monee:
Are there a lot of apartment vacancy's in the area ?
Are most of the present rents @ or below market rent ?
Lots of rents below market would give the present tenants incentive to stay and even if they did leave it would be great for you.
I would not base any of my decision on where interest rates may go, it's an unknown.
Out of curiosity how many units is a small apartment complex ?
The larger ones maintenance/repairs could be a huge variable.
You mentioned it would cover itself.What % down is required for that to happen ?
What is a flyover state ?
Good Luck
It is 7 quads in one area forming an apartment complex. I'm (hopefully) buying each quad for $200K. Rents from each quad will range from $2000 to $2400 a month, and I need about $2000 per quad to break even based on my cost of capital, taxes and insurance (excluding maintenance). I would describe it as an average area (not good or bad). It is in a good area of the central portion of town. The rental market is "average" here. The central parts of town are overbuilt with rentals (but not severly), but the outskirts are great for rental vacancy....this place splits the middle.
A flyover state is a "normal" area that doesn't have wild volatile swings in real estate prices like the coastal areas, new york, california, etc. Our economy is anchored by two colleges and state government.
SM
I moved to Atlanta from Carlsbad last summer and I am thinking about moving back this summer because I miss Carlsbad so much.
How is the housing market now in Carlsbad/ Encinitas??? Has it come down any?
John
How is the housing market now in Carlsbad/ Encinitas??? Has it come down any?
John
Stinks of desperation like ive never seen! :eek: