Carbon13
Well-Known Member
Hey guys,
I just finished a trip in Oregon where I visited Crater Lake, Bend, Eugene, the Central and Northern Coast, Astoria, and Portland. It was AMAZING! Along the way, I stayed in hostels and Bed and Breakfasts owned by real people. As an aside, I would highly recommend this method of travel. In Bend, the B&B I stayed at had the best waffles I've ever tasted. Anyway, thats not here nor there, the point I'm trying to make is I encountered a lot people making it seemingly work in the real estate market. So for you JazzFanzers who have pulled it off, how'd you do it?
Heh, sorry if thats too blunt. But all my initial reading on real estate leads me to believe its a complicated endeavor. First, I shouldnt view a house as an investment. Its simply a pile of stuff that gains roughly 3.5% annually, whereas, in the stock market I can average 8% without worrying about water damage or UV rays on my shingles. But if I can account for repairs, insurance, the cost of rent versus a mortgage, property taxes, and inflation. I may be able to make decent investment.
In speaking with the cool hipster couple who owned the house I stayed in in Portland, or P-Town as the kids say these days, they told me not to buy in the burbs. They said real estate there tends to go in tiers where you buy a house for x amount of dollars but its value tends to be diluted by the next tier of houses getting built next door. They told me they bought their sweet mid century modern bungalow near the city center when it was near a crack den and watched as the neighborhood gentrified over the period of 10-years. They suggested I do the same in Houston. The next part I dont mean offensively whatsoever, just echoing their thoughts, but I must admit it made some sense. They told me to follow the gays. Basically young gay neighborhoods tend to get nice real quick and are great places to live.
I think I am going to start small. Id like to buy a place that I can afford at least 30% down. I am going to assume 3% costs on the actual value of the house for annual repairs, and high property taxes. I live in Houston, where there are no income taxes, but they make up for it in property taxes.
Im thinking of buying a ~1000 sq ft condo in the Montrose district. If you arent familiar with Houston its a central portion of the city with a lot of art, museums, coffee shops, and yes, gays (I dont mean it offensively, I love the gays and marriage equality!!). It has a west coast feel to it. I think I could pay it down relatively quickly and eventually turn it into a rental property somewhere down the road.
Have any of you done rentals? Is it time consuming gawdawful work? I have a pretty consuming job I like a lot, but would have a difficult time playing landlord in addition, I think. Have you done rental agencies? How are they? Are my assumptions sound in terms of anticipated costs? What would you change or add in my analysis? For those of you successful at renting/real estate how'd you do it?!
Thank you so much Jazzfanz in advance!
I just finished a trip in Oregon where I visited Crater Lake, Bend, Eugene, the Central and Northern Coast, Astoria, and Portland. It was AMAZING! Along the way, I stayed in hostels and Bed and Breakfasts owned by real people. As an aside, I would highly recommend this method of travel. In Bend, the B&B I stayed at had the best waffles I've ever tasted. Anyway, thats not here nor there, the point I'm trying to make is I encountered a lot people making it seemingly work in the real estate market. So for you JazzFanzers who have pulled it off, how'd you do it?
Heh, sorry if thats too blunt. But all my initial reading on real estate leads me to believe its a complicated endeavor. First, I shouldnt view a house as an investment. Its simply a pile of stuff that gains roughly 3.5% annually, whereas, in the stock market I can average 8% without worrying about water damage or UV rays on my shingles. But if I can account for repairs, insurance, the cost of rent versus a mortgage, property taxes, and inflation. I may be able to make decent investment.
In speaking with the cool hipster couple who owned the house I stayed in in Portland, or P-Town as the kids say these days, they told me not to buy in the burbs. They said real estate there tends to go in tiers where you buy a house for x amount of dollars but its value tends to be diluted by the next tier of houses getting built next door. They told me they bought their sweet mid century modern bungalow near the city center when it was near a crack den and watched as the neighborhood gentrified over the period of 10-years. They suggested I do the same in Houston. The next part I dont mean offensively whatsoever, just echoing their thoughts, but I must admit it made some sense. They told me to follow the gays. Basically young gay neighborhoods tend to get nice real quick and are great places to live.
I think I am going to start small. Id like to buy a place that I can afford at least 30% down. I am going to assume 3% costs on the actual value of the house for annual repairs, and high property taxes. I live in Houston, where there are no income taxes, but they make up for it in property taxes.
Im thinking of buying a ~1000 sq ft condo in the Montrose district. If you arent familiar with Houston its a central portion of the city with a lot of art, museums, coffee shops, and yes, gays (I dont mean it offensively, I love the gays and marriage equality!!). It has a west coast feel to it. I think I could pay it down relatively quickly and eventually turn it into a rental property somewhere down the road.
Have any of you done rentals? Is it time consuming gawdawful work? I have a pretty consuming job I like a lot, but would have a difficult time playing landlord in addition, I think. Have you done rental agencies? How are they? Are my assumptions sound in terms of anticipated costs? What would you change or add in my analysis? For those of you successful at renting/real estate how'd you do it?!
Thank you so much Jazzfanz in advance!
