Thread: I don't want to be a slumlord!

since you guys are all posting bout your rentals.. i'll tell you bout mine...



it started with this



for $69k, spent about 8k in remodel, and is bankrolling $1300 a month.
then cashed it out 50k to pick up a 2nd one for 74k, since then we've picked up 4 more on the same street and 3 more in the neighborhood.

We're closing escrow on our 6th one on that that street... buying from another investor.. each house rents 1100-1400 monthly...

these houses were priced 350k+/- back in 2005-2006..... and i also learned that the neighborhood is 60%+ investor owned!

all of these homes are in the 800-1100 sq. feet range. making them 50-90 bucks a sq. feet... good buy.

best of all? it is in the bay area!!!


one of my clients owns over 300 properties in east palo alto and oakland... he's never step foot in those cities (lives in san mateo, ca), but he bankrolls 350k cash a month!!! insane!

Wow JJ, that's incredible! Glad to see youre making big moves outside of the Car World too!!

This is exactly what I want to do after I graduate from College...

Didnt know, good stuff.

are you buying distressed deals or market?

Wow, that is an incredible ROI.


Care to show me around If I visit town ?

Originally Posted by unitedvisionary

since you guys are all posting bout your rentals.. i'll tell you bout mine...



it started with this



for $69k, spent about 8k in remodel, and is bankrolling $1300 a month.
then cashed it out 50k to pick up a 2nd one for 74k, since then we've picked up 4 more on the same street and 3 more in the neighborhood.

We're closing escrow on our 6th one on that that street... buying from another investor.. each house rents 1100-1400 monthly...

these houses were priced 350k+/- back in 2005-2006..... and i also learned that the neighborhood is 60%+ investor owned!

all of these homes are in the 800-1100 sq. feet range. making them 50-90 bucks a sq. feet... good buy.

best of all? it is in the bay area!!!


one of my clients owns over 300 properties in east palo alto and oakland... he's never step foot in those cities (lives in san mateo, ca), but he bankrolls 350k cash a month!!! insane!

And people say real estate is down...logical investors know what they are doing.

Originally Posted by MarcNV

Wow, that is an incredible ROI.


Care to show me around If I visit town ?

I'll show you around, but not in the same area... cause you'd be stealin all the potential houses!!

but foreals, i don't mind showing you around some of hte money pits around here.

Originally Posted by dirago

are you buying distressed deals or market?

Both. i try to pick up deals where i dont have to do a lot of work, but most of the houses i pick up are market or slightly below market, but because hte location si located in a not too bad bay area city, about 15 min to a major city.. the rental market is still pretty strong.
and at 80/bucks a sq. feet, you cant beat that. these houses are about 300k+ 4 years go, so if the market were to come bak up, it would be a good return. even if it doesnt, it will probably not drop lower than what it is now. they should get about 10-15% ROI cash on cash after paying management fees etc, and 30-40%+ ROI after a year after you cash out.

These are my long term holds, the short terms ones are in major cities like Fremont, San Jose, Campbell, etc, and those are about 2-3 months, when we buyout foreclosures / shortsales and return flip them at market value. those area bout 20% return in 90 days approx but they tend to eat up more funds.

I'll take pix of some of the houses we got at rental.



Here's our rental in the Southern CA - 4500+ Sq. Feet 25k sq ft landscaped lot. 3 car garage, gated community.

Was once priced at 1.3 million, now worth a lot less, Rents for $2500 (dropped from 2700). But i rather have 5 of the small houses at rent than 1 big one.

Another Southern CA Property. 1 Story - 3500 sq feet house, 22k sq. feet lot



Previous worth: 1M, current: a lot less.
Rents at $2200