[HLS]

Wake me up if the listing price gets to $200K, and I might put an offer in at $187K.

If someone else wants to buy it before then, just let me sleep. No need to fight with anyone over it. They can have it.

In the late 80’s there were plenty of local properties that were available for a similar multiple. It was no big deal, and being a landlord was not as popular as it is today.

Getting financing was the issue, not the house price.
It needs to get back to that reality.

[HLS]

Wake me up if the listing price gets to $200K, and I might put an offer in at $187K.

If someone else wants to buy it before then, just let me sleep. No need to fight with anyone over it. They can have it.

In the late 80’s there were plenty of local properties that were available for a similar multiple. It was no big deal, and being a landlord was not as popular as it is today.

Getting financing was the issue, not the house price.
It needs to get back to that reality.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Depreciation is good, but has to be recaptured eventually. You can defer it for a very long time by trading up using 1031 exchanges, but IMO that is a bonus to buying rental property, and should not be part of the equation.

Simple math, net projected REALISTIC income, WITH a vacancy factor needs to be done.
Lenders usually only allow 75% of rental income to allow for vacancy,maintenance,utilities, etc.

If someone already has their primary residence in place and financed well, paying cash for rental property in a “midwest sleepy farm town” would still be a foolish thing to do IMO, but better than blowing it on something that would never return anything.

There are many people that have made money from real estate (and stocks)that made foolish choices by conventional standards when they bought, but still did well. Was that luck or a skill ??

This will always happen. There are people buying today that may or may not be as lucky.

[HLS]

Jimmy, if you make $80K+ a year and have a down payment of $80,000+, and have a credit score above 680, and can document your income, you MIGHT be able to get a really good loan on that New Salem house these days.

How much do you think Hemphill will rent for ?
Mutiply the monthly rent x 125 and that’s what the house is really worth AFTER it’s been fixed up.

[HLS]

Jimmy, if you make $80K+ a year and have a down payment of $80,000+, and have a credit score above 680, and can document your income, you MIGHT be able to get a really good loan on that New Salem house these days.

How much do you think Hemphill will rent for ?
Mutiply the monthly rent x 125 and that’s what the house is really worth AFTER it’s been fixed up.

[HLS]

Jimmy, if you make $80K+ a year and have a down payment of $80,000+, and have a credit score above 680, and can document your income, you MIGHT be able to get a really good loan on that New Salem house these days.

How much do you think Hemphill will rent for ?
Mutiply the monthly rent x 125 and that’s what the house is really worth AFTER it’s been fixed up.

[HLS]

Jimmy, if you make $80K+ a year and have a down payment of $80,000+, and have a credit score above 680, and can document your income, you MIGHT be able to get a really good loan on that New Salem house these days.

How much do you think Hemphill will rent for ?
Mutiply the monthly rent x 125 and that’s what the house is really worth AFTER it’s been fixed up.

[HLS]

Jimmy, if you make $80K+ a year and have a down payment of $80,000+, and have a credit score above 680, and can document your income, you MIGHT be able to get a really good loan on that New Salem house these days.

How much do you think Hemphill will rent for ?
Mutiply the monthly rent x 125 and that’s what the house is really worth AFTER it’s been fixed up.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[HLS]

Blue,
It’s not a matter of buying one or buying 10.
Realistically, it’s buying 3 or 4 with financing instead of 1, which can lead to better cash flow from the same initial investment. You can benefit from appreciation or suffer from depreciation.

I fully understand property in sleepy little towns in the midwest. Vacancies can be hard to fill, esp with quality tenants, in a “sleepy little farm town”
They often have very little chance of appreciating much.
For $60K, I don’t think that you get perfect condition, and upkeep, taxes, insurance and absentee management will greatly eat into your returns.

Is there a reason why the properties remain unsold when the return appears to be so good ?
Plenty of local farmers have plenty of money. Are they snapping up these houses for the great returns ?

Although your idea is good, I think that the premise of your plan is flawed.

If you can’t do both, what’s more important to you;
your long term goal which may become a disappointment
OR
Having your affordable dream home for your family to reside.

[Author]

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