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Del Norte County California has many houses for less than $250,000, but single family homes do not "pencil out" here - The rents will not pay for the expenses.

Del Norte County California has many houses for less than $250,000, but single family homes do not "pencil out" here - The rents will not pay for the expenses. Multi-family units can, and the more units, the more likely they will. We also bought in Lee County Florida, where a single family home IS cash flowing. If the employment market stays stong, we will look at picking up more, assuming we find deals that are acceptable to us. Risk: Insurance (property and landlord's liability), entity (LLC), and strong property management that is tight on screening prospective tenants. Last, watchful management: We keep an eye on the Property Managers, and provide overall management decisions, like where to keep rents, what improvements/repairs to make, etc. We are new at this, only 5 years in, so we are still most definitely learning.

raintrees 11y ago
And I should have put this in the first comment I made: This is not legal advice, nor is it financial advice. Please seek professional guidance for specific situations. This only serves as an example of specific deals I am involved in - H/T to gamblor956 for reminding me to state this.
- brc 11y ago
  I'm an investor myself. I have gone the route of industrial property. Still learning as well. Not much multi-family where I am, maybe a few duplexes but they still sell too high for the yield. So no worries about taking advice!
markyc 11y ago
what ROI are you looking for when investing in new property? how much do you pay for property management?
- raintrees 11y ago
  As we are just getting started, we look for at least 11%, and will move that higher as we get more experience (and more patience :)). Property management in both locations is about 10% of Gross rents. One company also charges half of the first month's rent to cover turning, advertising costs.
  - markyc 11y ago
    11% sounds out of reach in the EU
  - brc 11y ago
    I have friends who are long established investors. They won't buy unless there is an expected 20% return either in yield or flip. They are mostly retired now and don't buy much anymore.
branchless 11y ago
Happy land speculation. I thought Hacker News was full of actual entrepreneurs but it seems not, we have good old fashioned usurers and their foot-soldier landlords. It's the American dream!

raintrees 11y ago

And I should have put this in the first comment I made: This is not legal advice, nor is it financial advice. Please seek professional guidance for specific situations. This only serves as an example of specific deals I am involved in - H/T to gamblor956 for reminding me to state this.

brc 11y ago
I'm an investor myself. I have gone the route of industrial property. Still learning as well. Not much multi-family where I am, maybe a few duplexes but they still sell too high for the yield. So no worries about taking advice!

markyc 11y ago

what ROI are you looking for when investing in new property? how much do you pay for property management?

raintrees 11y ago
As we are just getting started, we look for at least 11%, and will move that higher as we get more experience (and more patience :)). Property management in both locations is about 10% of Gross rents. One company also charges half of the first month's rent to cover turning, advertising costs.
- markyc 11y ago
  11% sounds out of reach in the EU
- brc 11y ago
  I have friends who are long established investors. They won't buy unless there is an expected 20% return either in yield or flip. They are mostly retired now and don't buy much anymore.

branchless 11y ago

Happy land speculation. I thought Hacker News was full of actual entrepreneurs but it seems not, we have good old fashioned usurers and their foot-soldier landlords. It's the American dream!