Anyone going to *invest* in real estate once the bottom comes around?

25w100k+_IHB

25w100k+_IHB

New member
Since there is a lot of knowledge about Real Estate around here, I thought I'd ask if anyone is currently planning on investing in real estate once things become more affordable.



I'll reiterate that I'm not talking about speculation, but about looking for cashflow positive places to purchase. How difficult is this to do? Can it be done in someone's spare time? Seems to me that its another option on how to spend my hard-earned cash if I decide I don't need a nice place of my own but still want to capitalize on the crash.



Thoughts? Advice? Thanks in advance!
 
<p>I might give it a try... ha ha ha </p>

<p>Just bought a small little place that has about a $600-700 a month cash flow. Its not especially difficult, you just need to find the right deal and be prepared to purchase fast! BUT you must also realize that real estate is a long term investment/purchase. You won't flip it unless you pick it up for very, very, VERY little. In which case its a rare find indeed.</p>

<p>good luck</p>

<p>-bix</p>
 
Bis, do you use a management company? Did you just decide to do this one day, or did you read a book, or are you in the RE industry? Thanks for the answers so far everyone!
 
Cashflow investing in real estate is a sound investment -- if you don't overpay. If you invest properly here in California, you have a chance at catching the wave of a massive speculative bubble as an added windfall.
 
don't do it. being a landlord isn't for everyone and most time it is more of a hassle then it is worth. you are better off investing in stocks. just my two cent.





i hate being a landlord and now i am stuck..... dealing with tenants and their stupid problems. not worth the headache in my opinion for a few hundred bucks a month?
 
<p>@jbatzmaru: Just curious... what kind of "stupid problems"? I wondered what tenants complained about.... as a tenant myself, I try to fix simple things on my own.</p>
 
Not all tenant are bad, we are a tenant and we rented for the last three years. Never call our landlord for anything, pay rent on time and keep the house clean.



BUT once in a while you got a tenant from hell. The house is so filthy, you can't imagine someone actually living there. Then there are other tenant that think once you rent the place to them, they can rent it out to their cousin, their sister and brother family also, so you have three family living there.



There is so many loophole it is hard to move the tenant out. They can completely destroyed your home, and your recouse is their security deposit, take them to court...but if they out of a job, it is hard to collect any other charges.



And then there are other tenant....they call you for every single stupid thing, trying to deduct the repair out of rent. Lightbulb is broken, there one cricket in the house....blah blah blah.
 
<p>25w, </p>

<p> No, it takes ALOT of time and mistakes to get it right. You need to read, read and read some more.... I use a company and I pay them ALOT of money. NO, i'm not in the industry, I would want to shoot myself if I were. I'm a no-nonsense get down to it engineer. I don't like to play games, one offer, take it or leave it. Its not a great thing, so I tell my agents what I want and let them work it out.</p>

<p>Anyways good luck</p>

<p>-bix</p>
 
Absolutely. The fam's been in RE forever, and I'm the sort of gopher guy (I'm mid-20s). Landlording sucks the big one-- and we have managers for some of the properties. Guess how much fun it was for me to try to fix the organized crime Gypsy's overflowing muddy toilet in LA? Not fun. But, I'm working on shifting the property profile to stuff where there are better renters and better cashflow (read: parts of Irvine). But, I wouldn't take jumping into this lightly, I think there is going to be such a mess of floplords in the next few years.





By the way, this is what I think of a floplord as looking like. Sort of D&D meets John Kerry thing.





<img src="http://www.citypages.com/blogmedia/canderson/kerrytreebeard.jpg" alt="" />



 
Hey, they say you can get rich owning real estate, and you can. It is about timing, timing, and timing. I have, and my family has made money off RE, and I plan on making more from it. I can't wait to post about the cash flow positive property I buy here, but that is going to be a while from now. Maybe, for my 5000th post I will do it.





Maybe, I have been really fortunate, but my tenants have been great. But, I treat tenants the way I would want to be treated, and they tend to respect that.
 
>I can't wait to post about the cash flow positive property I buy here, but that is going to be a while from now. Maybe, for my 5000th post I will do it.





You'll have to slow down posting for that to happen.
 
<p>We had a cash flow positive property, and ALL the tenants were nightmares, all for different reasons, until finally we rentedwith an option to sell. That tenant thought of himself as an owner, had actually lived in the very house as a kid, and did buy at the end of the term.</p>

<p>I don't wanna be a landlord.</p>
 
<em>"You don't have to be an active landlord. You can have all your properties professionally managed for a fee."</em>





This is what I would probably do. The problem is the additional costs eat in to your cashflow, so you have to pay even less for the property to make the numbers work. Even with today's low interest rates, it would take a GRM near 100 to be cashflow positive after management fees.
 
Rental property is only a good buy if it's cash flow positive AFTER paying for management fees. You'll pay those fees one way or another, either as cash or as time and worry.
 
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