Robin Camacho
Las Vegas Real Estate
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Posted At : February 8, 2009 9:05 PM | Posted By : R Camacho
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Have my last few columns started with "Now I've seen everything?" Every day I see something else amazing, and I want to share it with my readers. Of course, I can't blog every day or I would...but I feel like I'm repeating myself with the "I can't believe" line. But I am constantly astounded by deals even I never expected to see.
Readers who've been with me for a year will remember Gui Zhong. Gui has purchased 2 rental homes from me in the past year, and we're writing an offer on another home tonight. Gui's strategy has changed somewhat; like many of my readers, Gui is looking to pick up homes priced at under $120,000 that should cash flow.
Today we're writing an offer on a home priced at $59,900. This 1422 square foot home in an older golf course community has 3 bedrooms, and 3 baths. It sold for over $240,000 in 2004. There is nothing spectacular about this house visually. However, the comps are renting for $1200 - $1250 per month.
There will be many offers submitted. I don't think the home will sell for less than $74,000, and I'm trying to convince Gui to offer that amount. He won't, and the house will go to some other lucky homebuyer. But even at $74,000, that is probably going to be the best investment that buyer ever makes.
I need to set aside a little time and organize an investor's club so that my girlfriends and I can put our spare change into buying homes that will produce monthly cash flow! Future appreciation will just be icing on the cake.
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How funny...I got several responses to that off-handed comment, and I am going to start that club now! I don't know what the details are yet, or what the minimum investment will be. Brandon Foor, my finance professor buddy, is going to organize it for me.
I have some wonderful investor friends that I've met through LVA who have bought homes from me over the past 18 months. All have outperformed the market at the time they bought.
But I keep thinking of all of my friends, family and associates who are entirely missing out on this market because they have only $20,000 to $50,000, or maybe $75,000, to invest. Not enough to be a serious player and pick up some properties for cash.
When I saw that property for $59,900 yesterday, I had to write about it. I happen to know it's in a golf course community. An older neighborhood, but it will cash flow. I think it's priced too low and will sell for around $75k. But even at that - what an incredible value. There are 2 homes for rent on the same street for $1250.
I'll keep your name on file and contact you when we have some details.
Only the buyer's accountant can tell him/her whether a particular home will cash flow in their situation. I'm a Realtor, and I'm not an expert in tax or financial matters. But at these prices my cllients are definitely picking up homes that will cash flow. Of course, many of those over $100k will cash flow as well, as long as you can get a good mortgage.