- Location
- Washington
Don't believe so. That's part of his retirement plan
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Dave Ramsey, debt, credit cards, retirement, etc
- Thread starter SuperJETT
- Start date
- Location
- Washington
Who knows. All he knows is work.
He did just close on his newest retirement venture
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He did just close on his newest retirement venture
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chadman154
#Itsonlymoney !!!!!
- Location
- Dirty south
Here is how my rental program works. Most of my houses are purchases between 20-30k. I usually stick in 10k in rehab. A few of my properties are in a pool at the bank, about 50% LTV. So bank gives me 100% purchase and fixup. After completed the property is usually worth double my total investment. My total loan payment on a 10yr amortization ( 3 year balloon) needs to cash flow +$350/month with taxes, mort and ins paid. I pay the loans ahead, most will be paid off in 7-8 years.
Flips i like to make 20k-30k, sometimes you only make 10k on a easy one, sometimes 50K+, there not all home runs, But I have tons invested into company equiptment (skid loaders, mini ex, dump trailer, job trailers) to help keep the major cost down.
The last down turn hurt a little, but I started picking up cheap houses and rentals ( i kept a lot), which help offset the PAPER losses of the ones i purchased at the higher market value. This is not a game thats played short term, your in for the long haul.
norcal ex
X-H2
- Location
- San Jose, CA
I wish I could buy a property for 30k. You cant find a shack on a 6,000sq ft lot for under 500k around here.
chadman154
#Itsonlymoney !!!!!
- Location
- Dirty south
I bet your weather is better. Cali house values be crazy......
I wanna move to florida, but it hard to replicate this business with this kinda cash flow. so for now im stuck in WI, traveling to florida in winter.
Mark44
Katie's Boss
- Location
- 100% one place
ROI is no more than 5 years on every property. We pay cash for the property then my company has to pay me back. As far as the down turn it was the best thing that could happen, housing market went in the trash property was a dime a dozen and people needing to rent thir house hold. I am just ready for it to go in the trash again.
chadman154
#Itsonlymoney !!!!!
- Location
- Dirty south
What indications do you see for a drop in prices again? What general area are you in? I have noticed a slight uptick in our market in the lower end homes. But our market tends to the lag some of the hotter markets that tend to lead in the real estate market. Im waiting for the severe drop in stock market, investors usually jump into real estate, then i will be a seller.
5 years of rent pay for the property or am I not understanding you?
This is what I was referring to for ROI, maybe you are using a different definition? http://www.investopedia.com/terms/r/returnoninvestment.asp
At 30k for a property, that doesn't seem unrealistic to be paid back in 5 years... what a deal though!!! I'm surprised the real estate investors aren't flocking to that area and swooping up everything in sight. Sounds like easy money!
Mark44
Katie's Boss
- Location
- 100% one place
Yes each property will have paid for its self in 5 years or less meaning hill Crest properties my business will have paid me back all money borrowed and will make profit. However I can not let profit happen so I will be looking into possibly starting a foundation. I still have to look into this but have time.
- Location
- Washington
7 years of rent pay for my dad's rentals in Arizona
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Related to this, the last neighborhood we lived in had 10 houses come up for sale all around the same time, 10 years after being built. They were all rentals, exact same floorplan but different outsides, spread throughout 1 phase of the development. Our realtor knew the developer and found out they were all his. It was a nice setup, he built 10 extra homes, rented them for 10 years, then sold all 10 for ~$150k making another $1.5mil after they paid for themselves with rent.
His house was tucked away between 2 different developments with over 8 acres, private pond, 3 access roads, and only visible during winter through the trees. It was a nice setup.
His house was tucked away between 2 different developments with over 8 acres, private pond, 3 access roads, and only visible during winter through the trees. It was a nice setup.
Mark44
Katie's Boss
- Location
- 100% one place
The estate I just bought last year of a guy who ownes 20 homes and just sold them all in a package to an investor from Iowa. Jesse now lives in one of my homes and is eventually moving to south america. He made some good money off those homes and has more for sale in Texas.
Hearing about success stories always get me excited, maybe because its something real that you own rather than paper. Though you hear from experienced people about actual returns.
"In a stable area, you should look for a cash-on-cash ROI of at least 8%, which you could leverage up to 12+% with a good FNMA loan & 20% down."
http://forum.mrmoneymustache.com/real-estate-and-landlording/typical-roi-for-rental/
8-12% return is pretty nice, but there is a ton of work as far as I am concerned with earning that return. Doing that and my full-time job would be rough. The liability also is a concern of mine, one bad lawsuit and you could get taken for everything you/your llc owns.
If I find a sweet enough deal I may have to get in, though I probably just missed most of the best opportunities with the past 5 years. However with the way the stock market has been, its tough to see real estate as a missed opportunity.
"In a stable area, you should look for a cash-on-cash ROI of at least 8%, which you could leverage up to 12+% with a good FNMA loan & 20% down."
http://forum.mrmoneymustache.com/real-estate-and-landlording/typical-roi-for-rental/
8-12% return is pretty nice, but there is a ton of work as far as I am concerned with earning that return. Doing that and my full-time job would be rough. The liability also is a concern of mine, one bad lawsuit and you could get taken for everything you/your llc owns.
If I find a sweet enough deal I may have to get in, though I probably just missed most of the best opportunities with the past 5 years. However with the way the stock market has been, its tough to see real estate as a missed opportunity.
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Dave Ramsey talks about that and owns a ton of real estate still under multiple LLCs. I don't remember the number but he keeps each LLC under a certain dollar amount, like $500k or something so that's all that is susceptible to a lawsuit plus has a ton of insurance also.
- Location
- Gilbert, AZ
That's ridiculous. It takes me about 3 weeks to do an eviction in Arizona. Maybe a couple more days if I have to have the constable drag them out.
- Location
- Washington
I hate evicting people... Never been more scared
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norcal ex
X-H2
- Location
- San Jose, CA
In San Fransisco you can not raise rents in certain areas and you can not Evict people PERIOD! I dont know how or why people own rentals in that city. Its a complete joke. Damn liberals.