My Rich Neighbor

[Frosty]

Originally Posted by Ian

My apologies, I didn't realize I was talking to a real estate tycoon in the making.

You better recognize....

[91chevywt]

Originally Posted by Frosty

You better recognize....

yup...real estate is where its at...

[NastyEllEssWon]

Originally Posted by Ian

My apologies, I didn't realize I was talking to a real estate tycoon in the making.

You're Fired

[SteveR]

Originally Posted by WayFast84

I can do it in NJ. It's called strategy. A nice 2 family house and the rent coming in from the one side pays the mortgage. Now get a house with a bunch apartments eventually you can make a profit... But hell what do I know my dad's only been renting out houses for 30 years...

The problem with that strategy is that you'll need 20% down in cash to avoid PMI on the loan you'll have to take out on the house you plan on renting and last time I checked most houses in NJ START around a quarter mil, so that's $50k out of pocket up front then the permits and inspections to allow it to be a rental. With the cost of owning a home and then being a landlord, you also have to fix all the crap that breaks in the house which comes out of your pocket. Then, you plan on buying your own house. There's another large out of pocket cash expense to put down on a second home loan. That's also assuming your credit is out of this world to allow you to take out two mortgages for most likely over half a million dollars. With the way the economy is now, you can't expect to make enough money off one rental to pay two mortgages. Your dad may have been doing it for 30 years, but the economy then was WAY different than it is now. You'll need a massive up front cash investment and I don't see you taking in enough from one house to pay for two. I had friends I used to work with that tried it and with owning homes in a very desirable area and also making six figures at their job, they still had trouble making a profit at the end of the year with all the expenses.

Also, if you're talking about buying apartment buildings, you better have one wealthy investor behind you. A small apartment building can cost you millions of dollars and the cost to run them is in the hundreds of thousands every year. If you're talking about a sub-divided estate, good luck with that. NJ has been trying to get rid of those for a while now and a lot of towns have stopped issuing new permits for it. That plus the cost to purchase one is well over a million.

[j0n]

Originally Posted by WayFast84

I can do it in NJ. It's called strategy. A nice 2 family house and the rent coming in from the one side pays the mortgage. Now get a house with a bunch apartments eventually you can make a profit... But hell what do I know my dad's only been renting out houses for 30 years...

Do you have any idea how much a house fitting that criteria costs in NJ? Not to mention the strict credit requirements for that size loan nowadays. You're probable retort is that you'll have your father co-sign... but wait... a cosigner means you will have to use an FHA loan, so you get the pleasure of paying PMI regardless of the size of your down payment. Add in furniture, food, cell phone, car insurance, homeowners insurance, landscaping costs, gas/oil, electric, water, sewer, garbage, landline, phone, internet, a couple months without a tenant and w00t! You are now in default of your mortgage! Congrats! You have helped bring the economy further down the ****ter, screwed your credit for the next 10 years, and screwed your father's credit for good measure.

Well done!



Edit: To the OP... based on even the small amount of info we have from you regarding your neighbor, I'd be willing to put a healthy wager on the fact that your neighbor is not rich, and most likely very far from it.

[NastyEllEssWon]

school is in! looks like someones got egg on their face now again

[Mark B]

lol

[chevyt454]

Sweet