Comments on: Buying MN Investment Property with Cash Flow

By: realtors mortgage

realtors mortgage — Fri, 12 Mar 2010 10:51:48 +0000

in the housing market, it is best to buy one house and pay off that house as soon as you can so I wouldn’t split the money on two, there is a bigger risk of losing both housing. If you have oe house secured then you could go back and with the security of your first house get another house loan and get another house to invest.

By: tim foster

tim foster — Sat, 29 Dec 2007 05:06:59 +0000

[…]
thank for the tip “find a property that is vacant, needs work, rehab it, and then rent it out.”
[…]

By: Scott Ficek

Scott Ficek — Wed, 12 Dec 2007 22:34:00 +0000

Alex-
I agree, but I consider it my responsibility to coach my customers through the decision process on whether to do a rehab or not (and then if they do one, what type). I have not had a customer do a rehab and fail, but I can see how that can happen!

I have a long list of contacts from individual trades to full general contractors to recommend to my customers to make sure they can be as successful as possible.

We are advising most of our customers to rehab and hold properties right now as the market is tough to rehab and sell.

Thanks for the comment.
Scott

By: Minnesota Investment Property

Minnesota Investment Property — Wed, 12 Dec 2007 20:30:33 +0000

Hi Scott,

I thought I would comment on the idea of “fixing and flipping” properties. It seems that the media glamorizes this process by condensing all of the pain and strain of doing a rehab – down into 60 (easy) minutes where the show ends with a “thumbs up” and a “SOLD” sign (or whatever).

But in REALITY – buying property and rehabbing it can be very stressful for most of us who don’t know how to do plumbing, electrical, sheet-rocking, etc. – and that’s why I prefer investment properties that are already in good shape before I buy them.

People who want to “fix and flip” should just be fore-warned that they had better have a team of experts that they can trust (and afford) before they decide to take on a rehab unit.

Cheers,

Alex Anderson

By: Scott Ficek

Scott Ficek — Sat, 08 Dec 2007 02:41:41 +0000

Thanks. It is amazing that I still hear about people (agents and mortgage brokers) preaching about negative cash flow.

By: The Property Pundit

The Property Pundit — Fri, 07 Dec 2007 20:27:51 +0000

Here, here! I just don’t get people who want to lose money each month, and deal with the headaches of being a landlord. That’s a recipe for getting burned out on real estate investing.

I wouldn’t even buy a negative cash-flow property in California. Who knows when their market will turn around. As you say, Scott, you may as well take your money and buy properties in places like Minneapolis where you can make money…