Investment Property

[MegaTrader]

Link does not work. Property for that price most likely is not habitable. In the least expensive of cities, properties for less than $50,000 are usually uninhabitable and would not meet the local building codes. Ones that would meet the coees for around $50k would probably rent for around $500 a month, then minus insurance and property taxes.

It's usually better off to buy apartment buildings in areas that are ripe for gentrification. But in the US it's difficult to own properties from a distance.

[S Chun-Li]

Anyone know how much a property like this: $33,900 in Texas, would rent for?

http://secure.aireo.com/propertylistings/88_listing_Texas_Single-Family-Residence_Best-Deal-In-Town....

[sovereignty42]

Of course, a financial crunch or bubble burst is being talked about here in the states, especially in markets like California, Florida. Even Seattle's market is high, but we have a good local economy to help keep prices up. Rents are going for a prety good amount also, though many are getting priced out.

That's why thinking about the fixer uppers and forclosures may be the way to go in the bigger markets, especially if people start failing on their adjustable rate mortgages if the fed hikes interest rates much more. Lots of people getting interest only adjustable rate mortgages here. Easy to get into and I'm not sure how savvy the average buyer is when they make it as easy to get into debt like they have been. Tons of zero down/no documention/stated income options available to almost anyone with even sub-standard credit scores with terms from 5-50 years now.

Landlord legal obligations vary from city to city, state to state. Some favor landlords, others tennants. Wide range so no real general rules without finding out from the city the property is in.

[sovereignty42]

Yes...San Antonio is a nice place. Good prices too.

[S Chun-Li]

In the UK where I have made most of my purchases, in late 90's it used to be possible to buy a place for 25k that would rent for 300/mth. Now the same properties are 75k and rent for 330/mth so don't make sense for the investor because mortgages aren't covered by rents, and there is a risk of prices dropping when interest rates rise. We don't have access to very long term fixed rates. Usually fixed rates are 2 to 5 yrs.

It is possible to find properties in certain parts of Northern England and Scotland where annual yields approach 10% but this is getting difficult because it is so easy for the UK investor to get a "buy to let" mortgage with 90% loan to value ratio. Some vendors will then gift you the 10% for the deposit. The acceptance criteria is usually a non-landlord income of £20k+ and the rent must be 125% of the interest on the mortgage. Such easy lending criteria combined with low rates have sent property thru the roof in the last 5 years.

Annual yields of 15%+ make it possible to buy a lot of properties very quickly and I believe yields in excess of this are available in the USA. I need to learn about sourcing finance, property taxes, landlord legal obligations, how the buying process works. Most importantly, in my view, is to pick the right properties in the right areas - where prices are low, rents are good. Capital appreciation will follow naturally as investors hunt out and fight over the last few remaining high yield real estate investments worldwide.

[S Chun-Li]

I have been looking in Texas at some cheap properties and trying to get a feel for rents:

http://secure.aireo.com/propertylistings/index.php?category=1&subcategory=1&province=0&c...

http://www.rentalhouses.com/view_listing.php?id=70649

Looks like some good yields might be available there.

[S Chun-Li]

Thanks, lisitng info is extremely useful to me so I can compare propositions.

[S Chun-Li]

Properties that are ready to rent out are preferred but if there's a hefty discount then fixer uppers could be worth looking at. Same with foreclosures - if it's a way of obtaining property below market price then I'm all for it. I like gearing so don't want to get into any purchases that I can't get finance for.

[sovereignty42]

I'm near Seattle. Craigslist is good for checking prices in Real estate markets. We're looking to buy ourselves here in the next few months. Trying to find larger property in the country to turn into a bed/breakfast at some point. Here's a good link for where I am now though:
http://seattle.craigslist.org/rfs/

Found by going to http://seattle.craigslist.org/ or any major US city and some foreign linked there.

Under "housing"
"real estate for sale"

http://www.windermere.com is a good website for the western states, lots of different listings from various real estate agencies. Good search features using the maps.

I'm not an not an agent or broker, btw.

[sovereignty42]

Ok. Are you interested in properties that need some work done or properties going into forclosure?

[S Chun-Li]

Looking for high yield, long term. Ease of obtaining finance is another important factor.

[sovereignty42]

Depends on where and what you want. Middle of the country will bring lower prices and more land. Coastals cities/states more expensive. Did you want to want to invest for short term, rental units or both?

[S Chun-Li]

Please post any properties/areas with good investment yields.
Anything returning 12% or more can be considered.

I don't know much about the US property market. Have been investing in residential property in Europe since mid 90's but yields above 10% are very hard to find now. Is US property a better option?