Jonas said:
@Remy
If I can find someone willing to pay $4k a month when my mortgage is $1k, then I can. The ‘70% of monthly loan’ rule doesn’t make sense here. I don’t think that law exists.
This doesn’t make sense at all. You can’t pay $1k in mortgage and rent for $4k. Without regulation, everyone would do this—get loans and rent for a profit. I’m from Italy; unless you buy upfront, rent must be 70% of the loan payment. If you refinance, rent should be adjusted.
@Remy
You clearly don’t know how North America works. There are no such rules about rent and mortgage here. Stop assuming all places are like Italy—it makes you look ignorant.
@Remy
The owner has to pay the mortgage with interest. The tenant pays the rent, which can be more than the mortgage if the market supports it.
This isn’t helpful at all. Feels like ChatGPT could do a better job.
Cale said:
Dealing with non-paying tenants is enough to make me say no.
If you educate yourself rather than assuming the worst, you’ll see why so many do this for a living in the US.
Do you buy properties in the same area so you can use one local management team?
Rin said:
Do you buy properties in the same area so you can use one local management team?
I invest in 3 states and use local management.
Rin said:
Do you buy properties in the same area so you can use one local management team?
I invest in 3 states and use local management.
Do you use a company or individuals?
@Taylor
I’ve used both, but I prefer individuals.
Which states or cities would you recommend? Which ones should be avoided?
Lin said:
Which states or cities would you recommend? Which ones should be avoided?
The Midwest and South hit OP’s numbers—OH, MS, AL, AR.
Lin said:
Which states or cities would you recommend? Which ones should be avoided?
I only do long-term rentals, but there are other options.
You just happened to get in during the best real estate growth ever and think you can repeat it now.
Reagan said:
You just happened to get in during the best real estate growth ever and think you can repeat it now.
This advice is for right now and moving forward.
Reagan said:
You just happened to get in during the best real estate growth ever and think you can repeat it now.
This advice is for right now and moving forward.
Where are you buying 2-bedroom properties for $50k with minimal work that cash flows? This sounds unrealistic for most markets.
@Reagan
Research markets that fit these criteria and make sure they need little work. If cash flow exceeds PITI, it’s worth it.
How do you calculate cash flow? Any formulas, guidelines, or spreadsheets?