Need advice: Best way to buy first investment/rental real estate property?

eaglesfan371 · 07-04-19, 12:52 AM

Been drinking and evaluating my life. Need to change a lot. Get this shit rolling. I'm 25 what the fuk am I doing. Need to start building solid career, get solid investments.

People say I should be at bars getting women at age 25, sure sex is fun briefly but that "wtf am I doing, get OUT NOW feeling after you *** is -EV". Plus, drinking sucks, $10-$15/drink sucks, hookup sex is boring and not kinky. Rub one out quick when distracted and get back on your shit guys. DO NOT LET WOMEN OR OTHER BS DISTRACT YOU!

eaglesfan371 · 07-04-19, 12:59 AM

We are all degenerates but we must focus on our shit. DO NOT gamble your check away. Hell, I need to cut back my average bet as well. I have moved my free cash into the following for long term growth:

70% Vanguard account blended among a couple funds
15% Robinhood account for personal stock selection
10% in 2.25% interest savings
5% checking account

eaglesfan371 · 07-04-19, 01:03 AM

I really want to make a video and make some statements.

However, there are some of you, some of the lowest scum on earth are degenerate gamblers here, who I KNOW would stalk me and find me somehow and try to ruin me. Send my posts to job or something. Something low as can be.

I will wear a mask I guess IDK.

gauchojake · 07-04-19, 01:05 AM

Buy a house to live in and rent the rooms to your pals. Also stop drinking and gambling you're a mess pal.

eaglesfan371 · 07-04-19, 01:08 AM

Originally posted by gauchojake

Buy a house to live in and rent the rooms to your pals. Also stop drinking and gambling you're a mess pal.

Drinking I'm OK. I hardly drink. I can count all the days I've drank in 2019 with both hands at most.

However, I do agree with my gambling. Won 20-25k from December-April via gambling and it has caused me to go full degen past two months. Nonstop gambling. Given back about 5k of it but you're right need to get it under control.

Purduekev · 07-04-19, 03:32 AM

Great question. In my circumstance in Central Indiana I invest in land with lots of road frontage within a short commute of a up and coming area that is rapidly growing but far enough out in distance that the price per acre is still reasonable. Price appreciation over time (years) is tremendous. Rent ground out to farmers for income generation until your ready to subdivide the property and start building. Land rent for agricultural use is highly competitive in our area and the income you generate is around $200 per acre with little to no expenses (Property Taxes & Liability Insurance). Build quality model home out in the country and the demand will be there for the other lots you have for sale. This is specific to me and might not be an option where you live. Bare ground is only land investment I make. Important to make sure that water is available on the land you purchase by either city (preferred) or via well if subdividing is your goal. I've been burned once by not doing my homework and not making sure water is on the property. Still own it and rent it as farm ground but it will never be anything but that in my lifetime because city water is decades away.

When it comes to brokerage investments, sell puts via options trading in companies you wouldn't mind owing at the strike prices you sell. You will be paid a premium for this and you will win about 85% of the time (neutral and bull markets) and keep the premium money and never own the stock and put very little money at risk. Trade small and far enough out of the money if you really don't want to own the stock and just want to keep the premium. The farther you go out of the money of course the less the premium you will receive but also the less likely you will be assigned the stock if it hits your strike price. This strategy won't work in a severe downturn in the stock market.

Tried the landlord thing in my younger days. No thanks. They rent for a reason and if they don't own it... they don't care and it shows on the inside and outside of the property. Just my experience. Not trying to offend quality folks who rent. I know they are probably out there but I have never met them even with a good credit report.

Sanity Check · 07-04-19, 03:35 AM

The number of people who can afford to buy real estate is diminishing constantly due to inflation an cost of living generally outpacing wage growth.

The only thing keeping the value of real estate relatively steady is #1 development of real estate not keeping pace with demand, artificially resulting in real estate being a scarce commodity. #2 Demand from foreign investment propping up lagging markets. #3 Real estate loan standards being reduced to allow people who can't afford to buy a house to buy one. #4 Government passing laws making it easier to buy real estate and I think they also offer loans to people who don't qualify.

There's a chance the bottom will fall out of real estate markets in the future -- as fewer will be able to afford it.

Just know that if you buy you could be selling at a loss later. Real estate isn't really an investment today. Unless you're someone who flips houses or develops real estate, more a means of cutting rental costs, growing your own organic food, escaping zoning restrictions or enabling you to own your very own crazy cat lady paradise.

Optional · 07-04-19, 03:38 AM

You're young.

It might actually be better to rent and invest your money into something with a better return. And look to buy a home once established more in life.

Buying a home to live in can be a boat anchor on your life if you over extend yourself too early.

jts1207 · 07-04-19, 04:01 AM

Have you had a job before because I'm not sure you understand how taxes work.

USCPHILLYGUY · 07-04-19, 05:44 AM

Originally posted by Optional

You're young.

It might actually be better to rent and invest your money into something with a better return. And look to buy a home once established more in life.

Buying a home to live in can be a boat anchor on your life if you over extend yourself too early.

Opti respectfully disagree especially with what the rental cost are in bigger cities. You’re just throwing $$ away.

allabout the $$$ · 07-04-19, 07:15 AM

i dont like you to be honest, but i will help you. here is a guy you should study/ learn from.

Bostongambler · 07-04-19, 07:51 AM

Originally posted by jts1207

Have you had a job before because I'm not sure you understand how taxes work.

Hahahaha.. I caught that as well. It’s “ net” he sure be concerned with.

USCPHILLYGUY · 07-04-19, 10:14 AM

Eags seeing how cheap you were on a bottle of scotch for your own father I’m confident you’ll attain these goals in no time.

allabout the $$$ · 07-04-19, 10:34 AM

Originally posted by USCPHILLYGUY

Eags seeing how cheap you were on a bottle of scotch for your own father I’m confident you’ll attain these goals in no time.

anyone who just wins 2k + gambling and has to buy a cheap bottle of liquor for their father can not sit at a bar with me

dbartinbwgc · 07-04-19, 10:53 AM

If you dont own a house now and are renting and really want to try real estate.
Then buy a duplex, and live in one side rent the other, but you pay rent also to the mortgage.
Easier to keep eye on the place, get paid off quicker, since you have to
qualify for the mortgage yourself if you dont have a renter for a month you can still afford the payment.
But when you have a renter you have some income or pay extra to pay off quicker.
Then after a few years you can do buy another double/tri/4plex again and rent out the one you live in.
If you stay 4 or under tenants and live there it is considered residential not commercial,
so you can qualify with little down as long as your income supports the mortgage.

Or just buy a REIT in the stock market

USCPHILLYGUY · 07-04-19, 11:02 AM

Originally posted by allabout the $$$

anyone who just wins 2k + gambling and has to buy a cheap bottle of liquor for their father can not sit at a bar with me

Speaking of sitting at bar. When you back in AC

stevenash · 07-04-19, 11:02 AM

Invest in NRZ stock.
Solid REIT, 15.33 a share with a target price of 18.93.
Pays a plump .50 a share dividend, it’s the darling of Nashers portfolio, bought at 13 and change.

mrpapageorgio · 07-04-19, 11:14 AM

Originally posted by USCPHILLYGUY

Opti respectfully disagree especially with what the rental cost are in bigger cities. You’re just throwing $$ away.

Depends on the situation though. From what I've read, if you can own for the same cost of renting, buying a house is worth it if you plan to live in it at least 2 years because anything less and you're losing money between commissions and costs when you go to sell (and the mortgage payment is also partially offset with the tax deductions where rent isn't). If he's planning to stay at the same job for a few years, then it's worth considering owning. If he's going to bounce from job to job, then the instability doesn't make owning a feasible proposition.

allabout the $$$ · 07-04-19, 11:17 AM

Originally posted by USCPHILLYGUY

Speaking of sitting at bar. When you back in AC

unfortunately going to be a while.

looking at property in nnj moving there in the next 2 months, looking at a few investment properties down in florida and my flip should be finished in the next month.

once everything gets settled in i will let you know

eaglesfan371 · 07-04-19, 12:54 PM

Originally posted by jts1207

Have you had a job before because I'm not sure you understand how taxes work.

I use tax calculators and budgets all the time.

My monthly expenses are very low. For example I pay $630/month outside of city for a room with an Asian family. Definite anti-dating place but it’s a good deal when studios outside city (here) are $1600 min and $3000 in City.

eaglesfan371 · 07-04-19, 12:56 PM

Originally posted by allabout the $$$

anyone who just wins 2k + gambling and has to buy a cheap bottle of liquor for their father can not sit at a bar with me

I did not end up joining them at beach. Gave all that back and then some. After braces lost to Mets, went 0-10...your curse worked, sold less than I even initially deposited. Worst beats too, 3 MLs on WTA tennis, all three win 1st set, loses next two. Diamondbacks ML, lose on bottom 9th 2 outs 5 walks given in a row to score 2 runs, etc. All I wanted was one win to sell and feel like ok I somewhat won, instead gave it all back. Deposited $1800 sold $900...poker made $1100...

Been very depressed past 3-4 days, hence why I agree I need to stop gambling for awhile, win or lose.

eaglesfan371 · 07-04-19, 01:02 PM

@Optional, owning a house in the area I live would be very difficult. Most houses 500k minimum. This investment could be a cheap house in a low income area. Or land. That’s an interesting one to look into as well.

I do not plan on living in the city. Yes, it’s great for nightlife but minimum $2000 expense. Small townhouses in Washington DC are $1M+.

jts1207 · 07-04-19, 01:33 PM

Originally posted by eaglesfan371

I use tax calculators and budgets all the time.

My monthly expenses are very low. For example I pay $630/month outside of city for a room with an Asian family. Definite anti-dating place but it’s a good deal when studios outside city (here) are $1600 min and $3000 in City.

Yes but your salary you posted does not equal what you are posting here now.

USCPHILLYGUY · 07-04-19, 03:24 PM

Originally posted by allabout the $$$

unfortunately going to be a while.

looking at property in nnj moving there in the next 2 months, looking at a few investment properties down in florida and my flip should be finished in the next month.

once everything gets settled in i will let you know

Great. When you have some free time shoot me a pm. Have a real estate ?

Optional · 07-04-19, 07:29 PM

Originally posted by eaglesfan371

@Optional, owning a house in the area I live would be very difficult. Most houses 500k minimum. This investment could be a cheap house in a low income area. Or land. That’s an interesting one to look into as well.

I do not plan on living in the city. Yes, it’s great for nightlife but minimum $2000 expense. Small townhouses in Washington DC are $1M+.

If you can find an area like Philly described where people pay more in rent than servicing a mortgage would cost, then make it happen!

In my experience (outside USA obviously) it is usually the low income earner areas that offer that though. So finding a place with an existing long term tenant can make a place worth a lot more than having nice street appeal.

eaglesfan371 · 07-04-19, 07:56 PM

Originally posted by Optional

If you can find an area like Philly described where people pay more in rent than servicing a mortgage would cost, then make it happen!

In my experience (outside USA obviously) it is usually the low income earner areas that offer that though. So finding a place with an existing long term tenant can make a place worth a lot more than having nice street appeal.

That is pretty much my current living situation lol. Asian guy, wife and kid used to live here, probably 750k house. He converted basement into 3 bedrooms and installed kitchen, washer, dryer etc downstairs. Put individual locks on the downstairs rooms, bolted the door to basement and added 3 individual locks upstairs to current rooms. Two houses in one now. 3 people rent a room downstairs, 2 people + me upstairs, and the owner himself. His wife and kid live in Philadelphia where she is a college professor. Everyone pays $600-$700 per month for their own room.

Guy is very nice though and accomodating. When I was dating the uber girl he would ask me when I would like alone time on weekend when other upstair tenants were gone and he would leave for us to be alone to have dinner n all. Threw me free beers several times and we had many discussions on sports and Chinese culture among other things. NBA is huge there.

Win win for all, I pay very low rent and he pays his mortgage easily. Obviously though, if I get serious with a girl, I will move somewhere more attractive immediately. My focuses are not on women though right now, hence the shitty living situation.

Optional · 07-04-19, 08:30 PM

That is one way to do it.

Lots of hassle that way of course.

A business premise in a rural town might be another option.

A local general store with a long lease can be potentially paying more than a mortgage costs.

This is how i got started. ONLY willing to go into positively geared property investments.

(not that I ended up with a lot of property but always made money with very low input/effort)

allabout the $$$ · 07-05-19, 12:25 PM

Originally posted by eaglesfan371

Gave all that back and then some. After braces lost to Mets, went 0-10...your curse worked, sold less than I even initially deposited. All I wanted was one win to sell and feel like ok I somewhat won, instead gave it all back.

Glad i was able to help you out