the i dont care about politics anymore thread

[unsunghero]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

Owning 2 houses should at best be like keeping your money in the mattress. A pathetic laughed at thing to do if you're trying to "save your money".

Who can afford to pay off two mortgages at once, even before this recent housing boom? Not most people

So anyone who is making enough money to pay off multiple houses at once is also making enough money to invest that money into some other way of making money. My cousin worked as an accountant for years, I'm assuming she was saving money during that time, then got her real estate license, now she rents out like 5 properties and that's her new full time job. Assuming you manage them yourself it's actually a lot of work, since you are responsible for fixing anything that goes wrong on any property at any time. And also protecting yourself from getting ripped off

I have another co-worker who paid a company to list his second property, find renters, and rent it. They take a significant chunk of his rent earnings though, like 20% or something I forget. He mentioned that without having the property (just some cheap condo) paid off, he would have to make more in rent taken than the mortgage costs in order to have enough money on hand to fix stuff. Apparently his dryer at the property broke twice in a row, which he blames on the tenant trying to wash ridiculously large loads of clothes after being asked not to

So I think earning enough money to pay off and then rent out multiple homes has always been out of reach of most. And like I mentioned in my other post, if you can save up enough money to pay off a house completely, you could put that money into many other money making schemes and make just as much if not more than you could renting that house. Stocks or crypto being the big 2 examples

[Jibartik]

Im not sure what you mean by that.

I want to help most people buy a home.

1 company in china owns 20,000 homes.

also its super easy to buy a 2nd home with these interest rates and then rent it out to work from homers.

[unsunghero]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

Im not sure what you mean by that.

But what Im talking about doing would help most people buy a home.

1 company in china owns 20,000 homes.

I was just mentioning that even before the housing boom, if you had a house paid off completely, you always had a good amount of capital to then make money with

You could rent the home out, assuming you could live somewhere else like with a relative. Or you could just sell the house and buy a store. I looked into buying a business franchise, and it’s not as expensive as you’d think, a lot of stores cost around $100k. So you could own your own subway restaurant. Even after paying a small staff, you could probably earn enough money with that store to comfortably live on, especially if you were living with a relative

So all this “making money in real estate” can also just mean saving up a shitload of money and then putting that money into some business venture. You just save the money by paying off your house while living in it

But yes there is a problem when the prices of homes get out of reach for people with middle class incomes to afford them. And I do think big investment firms buying up all the houses is the problem

[unsunghero]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

also its super easy to buy a 2nd home with these interest rates and then rent it out to work from homers.

So you buy a second home, but then you owe on its mortgage. So all the rent you make goes towards the house mortgage, unless you are charging more for rent than the mortgage costs. But I think it would most likely be the other way around. Unless you find a sucker, you will probably have to charge less in rent than what you pay for the mortgage every year

So you will not make a liquid profit on that second house until the mortgage is paid which could take decades. I mean you are getting profit in equity in the house, but that’s not money you can use when you need to. You also have to fix everything that goes wrong in the house for the next 20 years. So you better have some money saved for that

[Jibartik]

Originally Posted by unsunghero [You must be logged in to view images. Log in or Register.]

So you buy a second home, but then you owe on its mortgage. So all the rent you make goes towards the house mortgage, unless you are charging more for rent than the mortgage costs. But I think it would most likely be the other way around. Unless you find a sucker, you will probably have to charge less in rent than what you pay for the mortgage every year

So you will not make a liquid profit on that second house until the mortgage is paid which could take decades. I mean you are getting profit in equity in the house, but that’s not money you can use when you need to. You also have to fix everything that goes wrong in the house for the next 20 years. So you better have some money saved for that

When I was a kid I used to always see informercials like this and wonder, what are the secrets?? WHAT ARE THE SECRETS???



It's buying a house and selling it 6 months later to some dipshit who is willing to go in to debt for 30 years to pay an extra 230k because you painted it.

This on steroids, is both the boom and bust of our modern nation.

edit: I think this shit should be illegal. But then again, it makes better neighborhoods (at the cost of evicting old people, more sin!)

[unsunghero]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

When I was a kid I used to always see informercials like this and wonder, what are the secrets?? WHAT ARE THE SECRETS???


It's buying a house and selling it 6 months later to some dipshit who is willing to go in to debt for 30 years to pay an extra 230k because you painted it.

This on steroids, is both the boom and bust of our modern nation.

edit: I think this shit should be illegal. But then again, it makes better neighborhoods (at the cost of evicting old people, more sin!)

If you buy the house then sell it 6 months later, you have to pay what you still owe on the house when you sell

So let’s say you put 20% down and finance 80% in a mortgage. In 6 months, you will have only made 6 payments on that mortgage. Considering you are paying the maximum amount of interest at the beginning (minimum at the end because interest paid scales off how much of the loan is left owed), then you wouldn’t have paid off even 1% or maybe not even 2% of the value in those 6 payments

So unless the home just skyrockets in value in the next 6 months, you would either be at a wash (no change) in money or else you might be down due to the fees and costs associated with buying and selling

So as a non-rich average joe who wants to make money in real estate, here’s how: buy a cheap home to live in that needs a lot of work done but is in a desirable area. Then find the cheapest (in my state this would be the illegals that post up outside home improvement stores) labor you can find to fix up the home. Then re-sell it after about 1-3 years. The value will have gone up due to demand for homes in that area + the value of the improvements you spent on the home. If you were able to get a bathroom put in for only $2000 of your money, you could still choose to charge $10,000-$20,000 more for it having an additional bathroom now. People love extra bathrooms, especially in multi-bedroom homes. Or if you put in that fancy hardwood floor everyone likes, you can charge way more for it in the home price when you sell than what you paid

Plus you get the amount of money the house naturally went up. You would still have to pay back what you still owe on your loan, but you could make like 80-100k in a few years doing that. Then, repeat

That would be my strategy. But you have to compete with the big firms trying to buy and flip these homes

[Jibartik]

trust me flipping homes is a great way to make my money my man. watch the video. that homeless dude with the 230k check could do it in the 80s because it was such a well kept secret.

the problem is the people making the money are the flippers and the bank and then the other 80% of the nation is at each others throats because they're up to theirs in insurmountable debt.

[unsunghero]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

trust me flipping homes is a great way to make my money my man. watch the video.

That’s what I’m sayin. But flipping implies buying for cheap and selling for much more. You won’t be able to sell for much more in just 6 months time unless you spent money to make improvements on the house people will pay more for

But regardless I’ll watch the vid

[Jibartik]

Originally Posted by unsunghero [You must be logged in to view images. Log in or Register.]

That’s what I’m sayin. But flipping implies buying for cheap and selling for much more. You won’t be able to sell for much more in just 6 month

this is actually a great video about the last 10 years from a relatable perspective, from someone you no longer can relate to. [You must be logged in to view images. Log in or Register.]

250% lol the only thing that could net more than that is being psychic [You must be logged in to view images. Log in or Register.]

[unsunghero]

Haven’t watched the second but the first was just more like an ad for his method

I’ll watch the second in a bit, but like I mentioned before, if you paid the entire home value in cash, then you immediately start making money on it by renting it out. But if you took out a loan to buy it, then the rent you earn in renting it out has to go to that loan. So you won’t make money you can use right away

And it is possible to buy a home, do nothing, and then sell it for more. Mine is an example of that. It’s value has gone up around $125k in the last few years. If anything, it looks worse than before because I’ve done nothing to it, except maintain the yard. But it takes years for it to up in that kind of value, and mine is a special case because it is in a highly desirable part of Phoenix in a highly desirable state for people from CA to move to due to lower cost of living. A home in CA or NY will likely be going down in value, since no one wants to move there. So where you buy the home matters

Otherwise if you want to buy and then sell quick and make money in the sale, you’ll have to do something to improve the value and that usually implies big labor jobs like a new roof or new flooring

I’ll watch the second vid a bit later