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Buying and Renting Apartments/Houses

I am looking to invest around 100K to buy multiple apartments or houses as investments (Buying and Renting) in the Charlotte NC area, since I live here. I would like to leverage this amount through bank loans. I do not have any experience but I am willing to learn and work hard on it. I also have a day job which I intend to keep while I pursue this. I am looking for any and every valuable idea from someone who has first hand experience doing this. Thank you.

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Answers (3)
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Freedom Business Brokers
Orange County, CA

B P
I have an extensive experience in managing and owning as I own 8 units since 1980.Thiis is a well payingbusiness if you know what are you doing .Rain or shine you get the rental income.If there is a recession and people loose their houses in forclosures where they will move ofcourse to an apartment. As a matter of fact I have seen some foolish tenants who will pay equal amount for an apartment as rent rather they pay for their mortgage. I don't have any answer for that.
Now come to difficult part in renting. 2 things are challenging,1.Screening of tenants.2 maintenance of units
As far as screening is concerned I don't follow the usual routine of checking the credit and fico score
of the tenant and establish his credibility.I just go to manager of previous residence of the tenant in question and see if he is paying for last one year . Even if he filed a bankruptcy or he has been laid off from the job previously because of closure of company I will rent him an apartment.Sometimes I charge them little bit more because of these reasons.And I found that they prove to be good tenants.
Since I am providing them an opportunity a second chance to repair their credit they respect me more and pay religiously in time.Also they don'tt complain that often for unnecessary reasons and follow rules obediently.
Since they can't move to other apartments they don't threaten you as much.and they live for long period .Now the maintenance part. This is most difficult if you don't know anything about plumbing
or elecric or drywall patching.I give you another example; If you take your car to a mechanic for repairs and you tell him the symptoms and direct him to diagnose the problem he charge you more than if you have sorted the problem yourself and ask him to fix the waterpump or going one step further you yourself buy a waterpump and take to his shop and ask him to replace. So knowledge is power. Also observe a plumber or a handyman what he is doing and how he is doing.Next time buy some basic tools and try it yourself. He is not an alien with superpowers or magic but knows better than you only. One day you will know as much as he knows and you will save lots of money.
The other thing that is most important try to pay off your mortgage asap.Make it a priority that you will cut down your personal expenses drastically until it is paid for.Then you will harvest your crop in full
and redeem your investment.
Last but not least if you can't manage all this hire a property management company they gave you a singe rental check every month after deducting a nominal 2 to 3% of gross rental income. But remember this company can never replace you as far as quality of work is concerned.
Although small properties are not cost effective that much yet start from a 4 units building
then buy another 4 units.So that you can control. When you are well versed buy a 24 units building and so on.

Jan 29, 2011
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I have two completely different experiences in rental properties. I invested 450k in apartments in the north east and about the same in Kansas and Nebraska at about the same time. I completely renovated the North east apartments and have lost my a$$ on them. The Kansas and Nebraska property were single family homes with a solid track record of income and they gross me over 9K a month (about 7k net).
If I would have had to borrow the money, then the north east apartments would have broke me!! On the other hand, Kansas and Nebraska would have been good. I paid cash so I'm okay. Be careful about extending yourself to much and having to make bad decisions because of cash flow problems. Go slow and take your time.

Jan 28, 2011
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Cook County, IL

Hi B P. I work with a group of Real Estate Investors who are looking for partners to expand business into all major markets. The expansion focuses on partnerships with interested parties and the real estate investment strategies include wholesaling, bulk REO's, short sales, foreclosures, etc. The business model is very successful and features 2 separate income streams for each partner and complete training process for partners who are new to the real estate business. You have the option to do your own individual deals or partner on deals with real estate veterans and experts. Estimated initial monthly cash flow is 5-10k+ with growth potential following your mentoring and training process. We specialize in privately funding real estate deals and we have the resources to fund most deals without going to a bank. However if you prefer to finance through a bank that is fine too. I work with this group as an investor and as a Real Estate Agent as well. They have the experience, education and resources that you are seeking. Low initial investment of 13k makes it affordable to start without tying up all of your cash. Send me a message and I will get you in touch with the owner and the investment team. My email is: trockmichele@gmail.com

Jan 16, 2011

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