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blue_sky
ParticipantRoth IRA question in case anyone knows.
If you are over the Roth contribution limit, can you make a taxable contribution to a regular IRA and then convert the regular IRA to a Roth? Seems loopholeish.
I reserve the right to make up words.
ParticipantIf you’re going to live in it that sounds quite reasonable to me. Btw, an appt that rents for equivalent in SD (1200/mo) would probably cost you 250-300K now, and 50K more than that back at the peak.
ParticipantIf you’re going to live in it that sounds quite reasonable to me. Btw, an appt that rents for equivalent in SD (1200/mo) would probably cost you 250-300K now, and 50K more than that back at the peak.
ParticipantFor the record, it’s best if you go into real estate investing with the understanding that you MIGHT buy one of of every 10 deals, if you screen your deals well. If you’re just looking at everything in the MLS you MIGHT buy one in 100+.
Also, you’ll get much better deals if you buy in the off season (winter months). I prefer Nov – Dec since you sometimes find people who need to unload by year end for tax reasons.
The ‘off season’ trick may not work in New Zealand since calendar year end happens in the middle of summer for them.
ParticipantFor the record, it’s best if you go into real estate investing with the understanding that you MIGHT buy one of of every 10 deals, if you screen your deals well. If you’re just looking at everything in the MLS you MIGHT buy one in 100+.
Also, you’ll get much better deals if you buy in the off season (winter months). I prefer Nov – Dec since you sometimes find people who need to unload by year end for tax reasons.
The ‘off season’ trick may not work in New Zealand since calendar year end happens in the middle of summer for them.
ParticipantCan you describe the purpose of your investment?
How large an investment are you looking to make (# of units)?
Are you looking for a long term (>5 years) hold or a quicker flip?
Willing / able to put work into the property?Basically rental property spans a spectrum from ‘no work’ to ‘lots of work’, with corresponding returns. Being a slum lord pays because it’s a lot of work, so purchase prices are cheap.
10x gross rent in a 9.7% environment is not a deal, which is why you can find them easily.
ParticipantCan you describe the purpose of your investment?
How large an investment are you looking to make (# of units)?
Are you looking for a long term (>5 years) hold or a quicker flip?
Willing / able to put work into the property?Basically rental property spans a spectrum from ‘no work’ to ‘lots of work’, with corresponding returns. Being a slum lord pays because it’s a lot of work, so purchase prices are cheap.
10x gross rent in a 9.7% environment is not a deal, which is why you can find them easily.
July 20, 2007 at 2:21 PM in reply to: Everyone can relax, Fed claims subprime losses contained #66740Participant“And, yes, believe it or not, I am a Republican.”
Yeah, Bush cured me of that…
I’m for small government (though really, our health care system is just messed up), which doesn’t mean I’m for republican government.
July 20, 2007 at 2:21 PM in reply to: Everyone can relax, Fed claims subprime losses contained #66804Participant“And, yes, believe it or not, I am a Republican.”
Yeah, Bush cured me of that…
I’m for small government (though really, our health care system is just messed up), which doesn’t mean I’m for republican government.
ParticipantHair salon can be a great business. My brother owns one, almost no hassle and he has great employees, makes a good monthly nut off it too. On the other hand, he’s not a flake, whereas the previous owner was. She started the place with her rich husband’s money for something to do. Then she forgot to remit sales tax for a couple years…
People are fun.
ParticipantHair salon can be a great business. My brother owns one, almost no hassle and he has great employees, makes a good monthly nut off it too. On the other hand, he’s not a flake, whereas the previous owner was. She started the place with her rich husband’s money for something to do. Then she forgot to remit sales tax for a couple years…
People are fun.
ParticipantThere’s a cost either way. If real estate doesn’t come back down we create a substantial burden on an entire generation who ends up in debt up to their eyeballs just so some other people get rich. I know which way I think is fair.
ParticipantThere’s a cost either way. If real estate doesn’t come back down we create a substantial burden on an entire generation who ends up in debt up to their eyeballs just so some other people get rich. I know which way I think is fair.
ParticipantPlease keep in mind that my comments are based on multifamily commercial property, not SF used as rental, but here goes.
I wouldn’t touch it as a long term hold, maybe as a fix and flip. Negative cashflow is poison. Here’s what makes me go through a deal:
Begin with gross rents.
Subtract all of your expenses EXCEPT interest. This includes but is not limited to:Property Taxes / HOA if you have it
Insurance
Any utilities you pay (water? trash? gas? electric?)
Vacancy & tenant bullshit (bounced checks, etc) allowance (highly variable based on area and property quality vs rental rate. My vacancy rate is very close to 0%)
Property management fees
Maintance allowance (typically allocate 1% of purchase price here annually for a building in decent shape)the result is your net. Divide your net by your cash in the property (with commercial buildings I’m typically in for 25% down, plus closing costs, plus some float), this gives you your cap rate. If you don’t get at least a 10% cap rate, walk away.
This nets you 20-30% annual ROE, most of which is the difference between your cap rate and your mortage interest rate.
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