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flipping houses, buying stock, renting out a house/ duplex
I'm in full "money making, secure me and my childs future mode". I am a camgirl right now and still trying to make a significant amount of money doing that. I am a business administration major as well (20 years old btw).
Is house flipping a good market right now since the reality market sucks?
What about buying stocks?
I feel like being a landlord is always a good investment because there will always be someone looking for a place to stay...but how do you MAKE money out of it?
I mean if you use the tenants rent to pay the houses mortgage, utilities, upkeep, and keep money in the bank for emergencies that house might have then where is the profit?
Does anyone else wanna give me some investment ideas that I could look into?
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Re: flipping houses, buying stock, renting out a house/ duplex
Take your time..... become as familiar as you can..... then start very small.
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Re: flipping houses, buying stock, renting out a house/ duplex
I own about 21 rentals (self manage), plus I buy and flip (rehab) and buy and skip (sell without rehab) properties at tax sales. Its a mixed bag, depending a lot on buy price. Currently my goal is to skip houses to pay off mortgages on rentals
For rentals, they are worth in my market (scranton pa) about 25000/unit ready to go. That comes from
Rent (600/mo avg
-30% maintenance/vacancy pad
-10% management
-$100/mo/unit profit
- hard costs (taxes, insurance, etc)
Remainder tells you the mortgqage you can afford, plus you add 20% for down payment. My offers are the former, no down payment, for instant equity
Some people spend the 40% maint/mgmt fee as profit, but get in a bind when it comes to big repairs like roofs.
Feel free to email or pm me
Some markets like boston, all your rent (and then some) goes to mortgage. You hope for appreciation so you profit when you sell. Meanwhile your 'investment' costs you money. Not for me.
Also, learn the eviction and landlord/tenant laws in your state/local. For me, if they don't pay by the 6th, I file in coourt on the 8th and they're gone (I can re rent) by end of the month unless they make good. In some states, tenants get up to a year in free rent while the process goes to court.
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Re: flipping houses, buying stock, renting out a house/ duplex
There are a large number of 'unknowns' right now in regard to the future performance of US stock shares. Without getting unnecessarily political, let me point out that the two largest 'unknowns' that will affect future US stock share prices are Federal Reserve 'money printing' policy, and the results of next november's election. Thus 'general' investing in stock shares right now is a somewhat risky proposition.
Since your siggy says you're located in Michigan, which is A. broke at the state and local level ( thus pressure for higher property tax rates), B. suffering from one of the highest unemployment rates in the country ( thus few qualified buyers left in Michigan and with little hope of new qualified buyers migrating to Michigan ), and C. sitting on a huge backlog of foreclosed housing ( which the banks will eventually be forced to unload ), odds are that a regional real estate market recovery isn't going to happen any time soon. In fact, things may get worse in this regard ! Therefore 'house flipping' risks your being left 'holding the bag'.
On the flip side, undoubtedly there are a whole lot of FORMER Michigan homeowners who, via long term unemployment or bankruptcy or foreclosure, are in need of rental housing. But as Pinups4 already pointed out, getting into the 'landlord' business involves a whole 'nuther set of 'variables'. She correctly points out that, in certain states, it's damn near impossible for a landlord to get a delinquent tenant evicted and an apartment re-rented within any sort of reasonable time frame ( which means that the landlord must 'eat' a loss for every month an eviction drags on). There's also the major variable of unknown future property tax rates as local gov'ts are eventually forced to rebalance their budgets ( which means that the landlord must 'eat' the additional cost of higher property taxes unless / until a rent increase can be floated ). And in 'high crime' areas, there's also the possibility that tenants can make off with thousands of dollars worth of plumbing fixtures at best ... or shoot up / burn down the building at worst ... making property insurance costs prohibitively high.
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Re: flipping houses, buying stock, renting out a house/ duplex
I'm out of the fix and flip market right now and have been since selling in 2008. The house I own now is a keeper. BF and I have spend serious time and money on upgrades just because it is our keeper though. Rentals are definitely strong and probably will be for a while. All those people foreclosed out of a house have to live somewhere!
HTH
Z
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Re: flipping houses, buying stock, renting out a house/ duplex
When buying, the best place to buy (except from me lol) is tax sales. I double my money every time
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Re: flipping houses, buying stock, renting out a house/ duplex
you can still fix n flip in az....investors are still buying stuff and making 20-25% return on their money
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Re: flipping houses, buying stock, renting out a house/ duplex
Quote:
Originally Posted by
Melonie
There are a large number of 'unknowns' right now in regard to the future performance of US stock shares. Without getting unnecessarily political, let me point out that the two largest 'unknowns' that will affect future US stock share prices are Federal Reserve 'money printing' policy, and the results of next november's election. Thus 'general' investing in stock shares right now is a somewhat risky proposition.
Since your siggy says you're located in Michigan, which is A. broke at the state and local level ( thus pressure for higher property tax rates), B. suffering from one of the highest unemployment rates in the country ( thus few qualified buyers left in Michigan and with little hope of new qualified buyers migrating to Michigan ), and C. sitting on a huge backlog of foreclosed housing ( which the banks will eventually be forced to unload ), odds are that a regional real estate market recovery isn't going to happen any time soon. In fact, things may get worse in this regard ! Therefore 'house flipping' risks your being left 'holding the bag'.
On the flip side, undoubtedly there are a whole lot of FORMER Michigan homeowners who, via long term unemployment or bankruptcy or foreclosure, are in need of rental housing. But as Pinups4 already pointed out, getting into the 'landlord' business involves a whole 'nuther set of 'variables'. She correctly points out that, in certain states, it's damn near impossible for a landlord to get a delinquent tenant evicted and an apartment re-rented within any sort of reasonable time frame ( which means that the landlord must 'eat' a loss for every month an eviction drags on). There's also the major variable of unknown future property tax rates as local gov'ts are eventually forced to rebalance their budgets ( which means that the landlord must 'eat' the additional cost of higher property taxes unless / until a rent increase can be floated ). And in 'high crime' areas, there's also the possibility that tenants can make off with thousands of dollars worth of plumbing fixtures at best ... or shoot up / burn down the building at worst ... making property insurance costs prohibitively high.
Ive seen alot of your posts and you know everything about everything it seems lol since im stuck in the mitten yet want to keep progressing financially, where should I invest? Because you basically just said that I shouldnt invest in real estate in Michigan right?
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Re: flipping houses, buying stock, renting out a house/ duplex
Quote:
Because you basically just said that I shouldnt invest in real estate in Michigan right
With real estate, and especially with rental properties, 'location, location, location' is the name of the game. If you can buy something cheap enough, and it's located in an area that isn't laying off cops / shutting off street lights / ending garbage pick-ups, and the neighbors are 'trustworthy', and the local taxes and insurance rates aren't 'crazy', then who's to say that you couldn't turn a tidy profit. But unfortunately there's an undeniable possibility of significant future loss risk.
I can only take cues from what investors think of Michigan in general ... with just about the only major investor currently being ( involuntary ) US taxpayers !!!
PS I don't know everything about everything and never did. However, I probably spent a fair amount of VIP room time with people who do !!!
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Re: flipping houses, buying stock, renting out a house/ duplex
Quote:
Originally Posted by
Melonie
With real estate, and especially with rental properties, 'location, location, location' is the name of the game. If you can buy something cheap enough, and it's located in an area that isn't laying off cops / shutting off street lights / ending garbage pick-ups, and the neighbors are 'trustworthy', and the local taxes and insurance rates aren't 'crazy', then who's to say that you couldn't turn a tidy profit. But unfortunately there's an undeniable possibility of significant future loss risk.
I can only take cues from what investors think of Michigan in general ... with just about the only major investor currently being ( involuntary ) US taxpayers !!!
PS I don't know everything about everything and never did. However, I probably spent a fair amount of VIP room time with people who do !!!
I meant that as a compliment all of your posts are really informative :)
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Re: flipping houses, buying stock, renting out a house/ duplex
I'm considering my first tax sale next month and am also in PA. I was debating between more education or investing in property and I think I want to try for rental properties. Anything I should know about tax sales? How do you choose the properties without being able to look at them?? The one I'm interested in is a property I'm already familiar with, but what if I want to purchase something else?
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Re: flipping houses, buying stock, renting out a house/ duplex
I can help...feel free to pm or call. Bought 2 at last thursdays tax sale...spent 8500 on one and 5500 on the other. Have an offer for 14 on the first one already. Almost zeroes me out, meaning the other is all profit.
Tax sale (judicial) is the way to go,
Btw I don't touch em (repair wise) selling that cheap. Just cleanout and move on
If Ifix, I resell 15% below market.
I'm in luzerne and lackawanna counties mostly
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Re: flipping houses, buying stock, renting out a house/ duplex
^^^ obviously, the key to success with properties purchased at tax sales is having $10,000 or whatever available in cash to 'plunk down' at the time of the auction. The need to come up with a large amount of cash is what keeps most would-be live-in property buyers and most would-be landlords from bidding at tax sales themselves.
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Re: flipping houses, buying stock, renting out a house/ duplex
I'm originally from Luzerne county, but I've been looking in Berks right now.
What is the difference between an upset sale and a judicial sale? I'm completely new to this. Oh, also... how do you go about choosing what properties to buy since you can't go through them?
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Re: flipping houses, buying stock, renting out a house/ duplex
Having cash is nice and VERY helpful...but as I have begun to do, there are private money options available if a bank won't help you. Yes it has a cost...but if the deal is good enough (primarily for flips) and you're making money....so what?
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Re: flipping houses, buying stock, renting out a house/ duplex
The upset sale may make you upset...if you don't do a good title search (read: have one done professionally). After the sale the owner still can redeem/pay off the taxes for a certain time and get the property back (you get a refund I think).
Also, at upset dale the property is sold 'free and clear' Of all leins...with the caveat that if someone asn't notified they may sue later to claim a right. I have bought and sold a dozen properties at sale...and have done just one quiet title action (which prevents such claim only once. I always do a search after the sale...and let my searcher or attorney advise me
There is also repository sale...the crap left over after the judicial
As for choosing...it is a lot of driving around. A lot of peeking in windows if vacant and doing a lot of announcing yourself,
Be ready for squatters (I have been lucky so far), talk to neighbors. And look for r other signs. Pm me for more info on this...we can talk by phone
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Re: flipping houses, buying stock, renting out a house/ duplex
The upset sale may make you upset...if you don't do a good title search (read: have one done professionally). After the sale the owner still can redeem/pay off the taxes for a certain time and get the property back (you get a refund I think).
Also, at upset dale the property is sold 'free and clear' Of all leins...with the caveat that if someone asn't notified they may sue later to claim a right. I have bought and sold a dozen properties at sale...and have done just one quiet title action (which prevents such claim only once. I always do a search after the sale...and let my searcher or attorney advise me
There is also repository sale...the crap left over after the judicial
As for choosing...it is a lot of driving around. A lot of peeking in windows if vacant and doing a lot of announcing yourself,
Be ready for squatters (I have been lucky so far), talk to neighbors. And look for r other signs. Pm me for more info on this...we can talk by phone
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Re: flipping houses, buying stock, renting out a house/ duplex
At last weeks judicial sale...I bought 2 houses for 14k. I already have an offer on one of them for 13...and I've done no work to it, Also have a rent to own offer (no deposits yet) for the same house that will bring me 35k over 5 years. Picking well can be good.
The other one isn't listed yet...it needs a lot of overgrowth removed to see the house
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Re: flipping houses, buying stock, renting out a house/ duplex
What about buying foreclosures?
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Re: flipping houses, buying stock, renting out a house/ duplex
^^^ generally speaking, foreclosure sales by banks won't offer the same ultra-bargain prices as auction sales. But they do offer the possibility of mortgage financing by the bank looking to sell the foreclosed property it is holding the defaulted mortgage paper on.
Also, since this thread was first posted, there are some significant new 'variables' in the works which could have a major effect on owners of rental property. One is an increase in the tax rate applying to rental income, which is being discussed as part of the 'fiscal cliff' negotiations in Washington. As such, if you have waited this long, I would recommend waiting another few weeks until we all have a better idea what the new 'rules of the game' will be.
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Re: flipping houses, buying stock, renting out a house/ duplex
Im in michigan and just recently bought a foreclosed property from the recent wayne county tax auction tenant occupied In the hamtramck near detroit area for less than 600. The opening bids were 500 for 20, 000 homes. Previous taxes wiped clear. Youre not going to make millions doing it but you will keep a steady stream of income coming in. I used to shop around for rehab properties for a foreign guy I know and I started doing research and getting a feel for what to look for when buying homes. If they are tenant occupied youre set to go as far as having a tenant (if they are good tenants) and the house is already livable N up to code. I wish I knew about this sooner when the market was booming. But for now you can get deals if you take the time and know where to look. Realtors will try to sell u anything to make their commission. Do your research and look at the total investment...location, how much work it needs, the area, taxes, are you flipping it or not. And its great to have handy men friends who do plumbing electrical and flooring..major shit you cant do yourself. Pm me if u have any questions.
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Re: flipping houses, buying stock, renting out a house/ duplex
Once upone a time I lived in Michigan. I moved to Missouri before the housing market collapsed.
I agree with Melonie about the real estate market in Michigan. Because there is so many forclosed properties in Michigan it makes using it as an investment more trickie.
Do you have any experiance with real estate? stocks? investments?
If you dont or have very limited experiance I have some different advice as an ex banker.
To help secure your daughter's future and yours, I would just start saving money, if you havent already. A good emergancy fund is a much better plan then emergancy credit cards. Build it up for at least three months worth of expenses. That way if anything happens to you, you are covered.
While you are saving you can educate yourself futher on these different areas. Suze Orman and Dave Ramnsey I suggest to everyone starting out. Do you understand credit reports? IRAs? CDs? etc.
It might seem over kill but the more you know about the financial world the more you can take advantage of things from a place of knowledge instead of depending on a sales man or someone else's advice.
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Re: flipping houses, buying stock, renting out a house/ duplex
Quote:
Originally Posted by
pinups4
The upset sale may make you upset...if you don't do a good title search (read: have one done professionally). After the sale the owner still can redeem/pay off the taxes for a certain time and get the property back (you get a refund I think).
Also, at upset dale the property is sold 'free and clear' Of all leins...with the caveat that if someone asn't notified they may sue later to claim a right. I have bought and sold a dozen properties at sale...and have done just one quiet title action (which prevents such claim only once. I always do a search after the sale...and let my searcher or attorney advise me
There is also repository sale...the crap left over after the judicial
As for choosing...it is a lot of driving around. A lot of peeking in windows if vacant and doing a lot of announcing yourself,
Be ready for squatters (I have been lucky so far), talk to neighbors. And look for r other signs. Pm me for more info on this...we can talk by phone
Do you have any books that you could recommend?