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Discussion Starter #1
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!
 

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

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Didnt know, good stuff.
 

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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.
 

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Discussion Starter #7
Wow, that is an incredible ROI.


Care to show me around If I visit town ? :whistle:
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.
 

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Discussion Starter #8 (Edited)
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.
 

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Discussion Starter #9
Another Southern CA Property. 1 Story - 3500 sq feet house, 22k sq. feet lot



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

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Wow really interesting. I'd love to do the same in my area, then again I don't think I could find houses that cheap. Cali, Arizona and Florida seem to be gold mines when It comes to these opportunities.
 

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Those socal homes look a lot like the ones in my city. Which city is it in? I know I spoke to you about my properties not too long ago.
 

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I wish I could replicate your success here in AZ but it's not cheap here at all. Depends on how far you really don't mind being from your rentals. I found out in the last two weeks how crazy AZ is because about a month ago the houses were sitting on the market for awhile but now I was told because of the snow birds and people out of the country coming here, the houses are being bought up right and left.
 

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So I take it that you are using Property Managers for your houses or are you collecting the rents and finding tenants? In addition, if you are using Property Managers are charging the typical 10% for their services or do you negotiate that?

Thanks
 

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UV, thanks for posting, I stopped looking in the bay area because things looked to pricey, nice to see that there are still good deals around.
 

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Wow! Awesome thread! Thanks so much for sharing
 

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Discussion Starter #19
So I take it that you are using Property Managers for your houses or are you collecting the rents and finding tenants? In addition, if you are using Property Managers are charging the typical 10% for their services or do you negotiate that?

Thanks
im gettin 6%. negotiated. my old one was 10% or 100 bucks.
found a new prop manager through a friend that's been doing 6% for us due to volume.

That's pretty amazing!
I was wondering the same, do you use a management company?
see above comment.

UV, thanks for posting, I stopped looking in the bay area because things looked to pricey, nice to see that there are still good deals around.
there are still plenty of good deals around. these are some of the ones we're holding on to, but there have been some ones we flip every 3-6 months or so. you just have to know where to look.
 

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Sounds good I just did a deal, in another state. So right now I having to hold off a bit. Plus I am moving my LLC from California to Nevada, will take a few days to set up and get running.

Once I am done maybe we can do a deal or two :)


im gettin 6%. negotiated. my old one was 10% or 100 bucks.
found a new prop manager through a friend that's been doing 6% for us due to volume.



see above comment.



there are still plenty of good deals around. these are some of the ones we're holding on to, but there have been some ones we flip every 3-6 months or so. you just have to know where to look.
 
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