May 29, 2018
Questions from listeners:
From Bob in Long Beach California: I’m looking at a possible rental property. The rent is about $750 per month less than the payment but I feel like long-term this will be a good investment for me. What are your thoughts?
Research: The median home value in Long Beach is $544,600. Long Beach home values have gone up 6.8% over the past year and Zillow predicts they will rise 0.8% within the next year. The median list price per square foot in Long Beach is $407, which is higher than the Los Angeles-Long Beach-Anaheim Metro average of $394. PITI payment about 2700.
The median rent price in Long Beach is $2,125,
Indianapolis: The median price of homes currently listed in Indianapolis Metro is $164,900. The median rent price in Indianapolis Metro is $1,100, which is higher than the Indiana median of $1,000. PITI: $725
Derek from Atlanta wrote in: “I’m having a really hard time finding a deal in Atlanta. The market is so hot here whenever a property is listed, there are usually multiple offers the same day.” Suggestions?
If a market is that hot, it’s because of low inventory. This is a good time to be a builder or to invest in one.
Deals are still out there even though they are harder to find.
MLS may not be the best source.
Driving for dollars
Move away from the metro area - look to outlying counties. Study population stats - go where it’s growing, but not over-heated.
Consider other areas completely. Keep listening to this show or sign up for one of our courses and learn how to flip properties in other state.
This is the un-sexy part of being a real estate investor. Sometimes it just seems like work.
Francis from Pittsburgh PA writes in with this question. “I found a great deal. A friend of mine needs to get rid of his house quickly because he got transferred. We spoke to a realtor who said it’s worth probably $160,000. He’s willing to sell it to me for $130,000. All it needs is interior paint and a kitchen makeover. What do I do now?
This isn’t a deal if you plan to fix and flip.
If you want to move in, probably fine.
Candidate for a subject-to purchase or take control with a lease option and flip that. Too many details for the time we have here, but do not buy this house thinking you will fix and flip it for a profit.
If you have questions, we have answers or can find them. Send your questions to firstname.lastname@example.org. We don’t do tax or legal advice on this show and anything you hear that sounds like that wasn’t intended to be that. We are just providing education and using examples for illustration.
We are the real estate investing resource for you. If you need deals, we have them all over the country. If you need training, we have that. Do you need funding? We can do that. How about a combination of training and funding? We can do that. Don’t want to do the work but want to make great returns by investing in someone who is getting it done? We can help you there as well. Whatever you need for real estate investing, if we can help you, we will. You can reach me directly at email@example.com.
How to become a millionaire with real estate:
Appreciation (including forced appreciation)