Hello. Complete newbie here!

Nice to meet you guys.

Anyway, what my long term goal is, is to make positive cash flow monthly. With the money that we have, what do you guys recommend so that I can have rental income coming in?

I would like to hear suggestions is possible.

What I would like to do is to buy a home flat out without financing and rent it out. Would this be recommended? And if so, what part of the US?

Thanks so much!!

As close as possible to where you are right now, provided that it is a place where people actually want to live.

thanks for the response! That's going to be a bit hard for me though, seeing that I live in Hawaii lol

Title pawn (cars) companies in the United States make a killing.

In my state it's 25% interest the first 3 months and then 12.5% per month afterwords.

200% to 300% annual return on your money. Pretty good business.

Thinking about opening one myself as an investment along with my real estate stuff.

If you have 70k you could pool the money with other investors and buy a large commercial property with more value and upside then a single house.

Any ??? Let me know.

Wow. That does seem like a pretty good deal. I might look into this as well. Right now, I put my money in a credit union which generates 3% on my money yearly, but am always looking for more ways to get my money to work for me. Thanks for the tip Super Realtor, I will do some research on this

Hey,

If you are looking into something to invest into, single family homes tend to be the way to go, at least in Minnesota (where I'm from). The market here allows investors to buy homes for roughly around $30-$60k, depending on the city. In these cases, the investors will stick about $25-$30k into them, pull their money back out of them during the refi and see a cash flow of roughly $300-$700/month depending on the property. Some of the investors I've worked with now have over 30 homes and have an exponential amount of cash flow per month.

Hope that helps,
Adam

hey adam. Thanks for the tip! What do you mean by pulling money out during the refi? do people buy with cash when the housing is that inexpensive? Thanks!

Well from far away you want an investment that is easy to manage with (economies of scale).

Instead of buying 10 houses buy one apartment building.Commercial financing and terms are much easier to come by and deal structure can be more elaborate as you do not have the government suffocating you with rules and regs like the residential side.


If you want to discuss further Private Message me.

Sorry I am not Adam, but I will take a whack at it. They do this to essentially borrow their funds back so they can move on to the next property and add to their portfilio--but they are alos incurring mortgages too. I sense you are looking to be unuencumbered--you seem to want to own something free and clear. I think it is a smart way to start. You can always come back later and tap into your equity by borrowing it through an equity line for instance. I would not consider anything exotic or complex going into your first deal.

If you are saying you will have to buy something stateside, then make it somewhere you visit frequently and where you know the area. You'll need a good property manager, who will want about 10% of your rents to cover their costs. Good luck, you are in a great spot sitting on cash like that. Have fun and make some great decisions.

Ahhh I see... Man, thank you guys!
This forum is awesome, I'm glad I found it!

[quote=R2Z]hey adam. Thanks for the tip! What do you mean by pulling money out during the refi? do people buy with cash when the housing is that inexpensive? Thanks! [/quote]

No, most investors will put roughly 25% down on a construction loan and by the time the work has been completed the home will in most cases appraise high enough where the investor is able to pull most if not all of his initial investment back out of the property due to the new built in equity from the renovation. This still typically will give the investor cashflow… roughly $300 to $600 per month.

However, the investor will need that cash as the upfront colateral in the deal if that makes sense, and there are a few cases in which some money will need to be left into the property due to the apprasil coming in a bit low which we have no control over. All of this is dependant upon the renovations that are done and the added value they create because of the renovations. We have done over 300 properties like this and all of the investors really seem to be happy with the results!

-Adam

Oh wow I see. Do you handle these types of properties yourself?

Yes… Over the last few years we have assembled a great team of people that give my clientes the ability to use us as a one shop for everything from the financing, to the construction work, and in the final stages property management as well. Many of my investors don't have time and therefore prefer to be hands off with these properties… This gives us the freedom and ability to capitalize on what we do best, which is building equity for our clients and putting money into their pockets each month (through the cash flow on these rental properties). The reality is that we have done over 300+ properties and we know what works and what doesn't work through mistakes we made when we first started out, therefore we use that knowledge to pass that information along to our clients so they don't make the same mistakes we may have made. Everthing from door handles, to paint colors, to whether or not you replace appliances.

Let me know if you have any further questions!

-Adam

Try to look into foreclosures. I'm sure you can find a property for 50k that would be a good investment on and to rent out to tenants to receive constant cash flow. States to look at are Florida, Texas, Georgia and mostly other states in the south where home prices are considered to be below average in price.

thank you guys very much for the info. I'm looking into every suggestion!

depends where you buy. i deal in s california and you cant get positive cash flow with 70k. many areas of the country you absolutely can. southern california is more about appreciation rather than cash flow.

Leverage up.

Many of my investor commercial buyers are from California,New York,Washington,Chicago etc. where they can generate much greater returns in Georgia.

I see. Where in your opinions would be the best place to invest in at the moment?

It depends on if you want to hold long term or short term.If you will accept greater risk for higher returns.If you are in the wealth generation stage or the wealth preservation stage.

I would have to talk with you about your goals to determine a plan of action.

Private message me with your contact info if you want to proceed further.

70,000 Powerball tickets!! Seriously though, this is a great time to investing in bargain-priced properties. Find a couple of properties in good markets that just happen to be shaken up by the economy and wait for buyers to become less gun-shy as the economy continues to rebuild itself.

lol!!.. That thought DID cross my mind.. More so in the line of taking a trip down to Vegas and putting it all on black. Speaking of which, some guy DID do that, and I heard he won about $80k. haha...

But yeah, I'm hearing mixed results from different people, so I'm also looking into building a senior care facility.. Not sure yet, thanks for the tip!

I am looking for the same type of investment... But because I'm Canadian, Arizona and Florida are the 2 most 'tax-friendly' states for Canadians to buy in.

There are townhouses that you can buy for about $65,000 in Phoenix that rent out for $750-$900/month and I'm looking into scraping up enough money to buy one of those... I've researched the place and it looks like a few are on Auction.com with starting bids of $19,000 .. might be a good place to start...

Jeff

I know that this thread has been dead for a while, but let me share my thoughts. There are opportunities for real estate investment everywhere on the mainland, but the priority in this case is finding trustworthy people to give suggestions and oversee the entire process (purchase, rehab, rent, manage, etc.). Talk to your friends and coworkers and see if they can refer someone on the mainland. If you know people here, ask them for referrals.