does anyone here buy and rent out homes or condos?
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Flipped homes for a while, during the boom. Got bit on the tail end, but nothing big. Made a lot of money.
Why?Comment -
Hey Chalky -
If I save up like $120,000 for a down payment make like $40,000 a year how expensive of a house can I afford in this market on a fixed rate mortgage?Comment -
you'll want as many black tenants as possible.
that's where the real money is at.
good luckComment -
im just curious i see some 2500 sqft for like 150,000 i just thought that if you bought one for that and sold it for like 200,000 thats alot of money but then i thought how come they arent selling it at that anywayComment -
No idea what market you are in. In the PHX market, a $120K down payment will go a loooong way. For instance, my buddy just bought a house in one of the nicer established communities in PHX for $180K, 5000+ sq. ft. 4 bedrooms, 4.5 bathrooms, on a hillside - house was
. He had to put a few thousand into it, because he wanted an upgraded kitchen, etc - but that house was easily worth $650,000 5 years ago if not more.
In New York, that market is insane - no idea. Try and look around the internet for a Realtor who gives you some sort of access to an MLS search in your area and look around.
$120K down payment is insane - just talking normally, that can be a down payment on anything from a $600K (20% Down Payment) $1.2M (10% down payment). Now, I doubt you qualify for a house worth that much on a 40K yearly income - but that is the type of house price you are looking at with that sized down payment.
I'd find a house you like and can afford, and simply put down the 20% down payment, and hold onto that cash for fixing up the house.
My advice on anything, is try to hang onto your cash for as long as possible. This world is setup to separate you from your cash, don't allow it. Try and use your credit score, anything, before digging into your actual cash reserves.Comment -
Doesn't exactly work like that.
The trick to making money is always buying low and selling high. The market everywhere is starting to improve, and especially out here where I am at, which makes me start thinking about getting back into it.
Basically, using your numbers as an example. If you have a house that with a few fixes and upgrades can sell for $50K more than the current asking price, that is a solid investment. (I am using your example, but to be honest - that kind of profit magin hasn't existed since 2005).
So, say you find this house, your Credit score is 700+, and you have $30K working cash. Well, you go into a bank, and find a loan that will allow you to put the smallest down payment possible. For very very simple math, let's say the best you qualify for is a 10% down payment - so you fork over the $15K and get the keys to the home. (Note: there are closing costs, realtor costs, all kinds of fees everywhere - so that $15K to get into the house is probably much closer to $20K).
Now you got the keys, you need to fix this house ASAP, because the worst thing to do in this business is get hit with an actual mortgage payment, as that is just unnecessary money leaking from your profit.
Say in a perfect world, you invest $10K, and hook this property up to where it can easily sell at $200K, and you in fact sell it before your first mortgage payment is due (only did that once in my life) - and wham, you made an insane profit for right around a month of actual work.
Like I said that is a perfect world example, and will most likely will never happen. Furthermore, the market wont bear a $50K profit margin anymore. Those things just don't exists, unless you swindled an owner on either side of the transaction (highly not recommended).Comment -
so how long does it usually take to sell a houseComment
