greeeeeaaaaaaaat ! let's rent out dumps to college kids (i'm sure they'll pay 3-4k per month...) and then sit on our boats and collect. sounds great! let's get in on it! i'm not sure where you live but in most parts of the united states (except nyc for now), you can't even rent a 500k home for over 2k/month....where's the income??? i'm in FL, my friends are in nyc, dc and chicago and they all say the same thing - rent does not cover monthly costs! when you're on your 'boat', is it a plastic raft?
Real Estate is dying? Investment-wise what is the next Asset Class Du Jour?
- Thread starter lrm21
- Start date
greeeeeaaaaaaaat ! let's rent out dumps to college kids (i'm sure they'll pay 3-4k per month...) and then sit on our boats and collect. sounds great! let's get in on it! i'm not sure where you live but in most parts of the united states (except nyc for now), you can't even rent a 500k home for over 2k/month....where's the income??? i'm in FL, my friends are in nyc, dc and chicago and they all say the same thing - rent does not cover monthly costs! when you're on your 'boat', is it a plastic raft?
I have to concur with you there. I am selling my condo I wanted to keep and rent it but a $135K condo rents for 750/mo (you need to pay $200/mo in maint) here in Miami. You can rent $500K home for under 2k here easy. Its a little insane.
Prices versus rents are pretty out of hand. I started this thread and I was being a little sarcastic with regards to real estate dying. Real estate will never die. But I did want to see where other people are putting the money so far I got:
1) Real Estate (Mobile Home Parks)
2) Teak Wood
3) FX Trading
4) Real Estate ( Flipping)
I was hoping to hear some more discussions like
Gold, oil, Bonds, Quiznos franchise, Giants are paying 33-1 for the Superbowl take a line on that, etc.
If you had money where would you move it?
http://www.taipeitimes.com/News/front/archives/2004/08/13/2003198506
China is in for a hard landing: Xie
By Lisa Wang
STAFF REPORTER
Friday, Aug 13, 2004,Page 1
"The development of China's property market is the determining factor for a hard landing or a soft landing."
Andy Xie, Morgan Stanley economist
China's economy is likely to experience a hard landing, as the nation's property sector is close to bursting due to excessive investment over the past years, a Morgan Stanley economist said in Taipei yesterday ...
China is in for a hard landing: Xie
By Lisa Wang
STAFF REPORTER
Friday, Aug 13, 2004,Page 1
"The development of China's property market is the determining factor for a hard landing or a soft landing."
Andy Xie, Morgan Stanley economist
China's economy is likely to experience a hard landing, as the nation's property sector is close to bursting due to excessive investment over the past years, a Morgan Stanley economist said in Taipei yesterday ...
RE: "I'm not sure where you live but in most parts of the united states (except nyc for now), you can't even rent a 500k home for over 2k/month....where's the income??? i'm in FL, my friends are in nyc, dc and chicago and they all say the same thing - rent does not cover monthly costs!"
I hate to make you look like an idiot but here goes. NYC, Chicago, and DC are not the only places in the US that people live.
Here are three examples of property that debt services (this took me 5 minutes to find)
FOR SALE: Charlotte NC: 5 walking minutes from UNC Charlotte campus. 55k 4 bedroom apartment rents to college students $750 per month. (%20 down 6% rate monthly PITI $340)
FOR SALE: townhouse Tallahassee FL: Directly across from FSU football stadium 90k (20% down 6% interest rate monthly PITI is $540) rents for $800 per month.
I prefer to build because my costs are $50 per square foot. A quad (4 townhouses in one building) cost me 250k in a small blue collar town. I can rent each unit for 800 to 850 total $3,200.
(20% down 7% interest rate monthly PITI $1663)
Now on to the low rent commercial stuff (these always debt service appraisals are generated from how much income the property generates):
FOR SALE $1,000,000 Mobile home park Asheville NC 52 lot nets $103k per year. (owner rents lots not houses so there is little overhead or maintainance headache. And there will never be a shortage of old or poor people to rent to
(30% down with a 8.5% rate fixed over 20 years $82,000 per year vs net 103k per year. Paid off in 20!)
Now for the sophisticated investors:
foreclosure Bail Out. Hire someone to pull public records for pre-forclosure. There are 1000s. Find the people with with at least 35% equity in their property and refinance them with you making the loan you "hold the paper" at a 10% to 13% interest rate. You give them a second chance to save their house if they get their act together. If they do not pay you get a house 60 cents on the
Dollar. Rent the property out if it will debt service or sell it for a 35% profit if it will not debt service.
IN 5 MINUTES TIME I FOUND 3 PROPERTIES THAT DEBT SERVICE AND HAVE THE POTENTIAL TO GENERATE INCOME. THE TRICK IS TO LOOK OUTSIDE OF THE LARGE METRO AREAS. BROADEN YOUR HORIZONS THERE IS A GREAT DEAL OF MONEY TO BE MADE OUT THERE! AND REMEMBER LARGE METRO AREAS ARE NOT THE ONLY PLACE PEOPLE LIVE IN THIS COUNTRY MIDDLE AMERICA REALLY DOES EXIST.
I hate to make you look like an idiot but here goes. NYC, Chicago, and DC are not the only places in the US that people live.
Here are three examples of property that debt services (this took me 5 minutes to find)
FOR SALE: Charlotte NC: 5 walking minutes from UNC Charlotte campus. 55k 4 bedroom apartment rents to college students $750 per month. (%20 down 6% rate monthly PITI $340)
FOR SALE: townhouse Tallahassee FL: Directly across from FSU football stadium 90k (20% down 6% interest rate monthly PITI is $540) rents for $800 per month.
I prefer to build because my costs are $50 per square foot. A quad (4 townhouses in one building) cost me 250k in a small blue collar town. I can rent each unit for 800 to 850 total $3,200.
(20% down 7% interest rate monthly PITI $1663)
Now on to the low rent commercial stuff (these always debt service appraisals are generated from how much income the property generates):
FOR SALE $1,000,000 Mobile home park Asheville NC 52 lot nets $103k per year. (owner rents lots not houses so there is little overhead or maintainance headache. And there will never be a shortage of old or poor people to rent to
(30% down with a 8.5% rate fixed over 20 years $82,000 per year vs net 103k per year. Paid off in 20!)
Now for the sophisticated investors:
foreclosure Bail Out. Hire someone to pull public records for pre-forclosure. There are 1000s. Find the people with with at least 35% equity in their property and refinance them with you making the loan you "hold the paper" at a 10% to 13% interest rate. You give them a second chance to save their house if they get their act together. If they do not pay you get a house 60 cents on the
Dollar. Rent the property out if it will debt service or sell it for a 35% profit if it will not debt service.
IN 5 MINUTES TIME I FOUND 3 PROPERTIES THAT DEBT SERVICE AND HAVE THE POTENTIAL TO GENERATE INCOME. THE TRICK IS TO LOOK OUTSIDE OF THE LARGE METRO AREAS. BROADEN YOUR HORIZONS THERE IS A GREAT DEAL OF MONEY TO BE MADE OUT THERE! AND REMEMBER LARGE METRO AREAS ARE NOT THE ONLY PLACE PEOPLE LIVE IN THIS COUNTRY MIDDLE AMERICA REALLY DOES EXIST.
