From: paul.tomko@gmail.com
Newsgroups: misc.invest.real-estate
Subject: Re: some basic advice...?
Date: 23 Jun 2006 12:39:14 -0700
   posting-account=MyaZqg0AAACykf7Xo8QfXtu2hWeX2psZ


John A. Weeks III wrote:
> In article <1151076864.626368.8050@g10g2000cwb.googlegroups.com>,
>  karl@shadowlakes.com wrote:
>
> > Excuse me upfront for asking perhaps a too vague of a question.
> >
> > I'm looking at making like about 400k on the sale of our north Phoenix
> > area home. We're planning on then moving out of state. I'd like to be
> > able to live mortgage free for a change. But what I also would like to
> > do is make that money work for me. Find some nice investment property,
> > and either fix up and sell, or rent, then find another place we can
> > live in for a while, fixing it up, then selling for a profit. Would
> > like to do this without borrowing money. Is that a good statergy? We're
> > think of going back to Denver - like CO - but that market seems flat
> > and in decline in some areas. Any other markets out there ripe for
> > investments?
>
> The basic idea is great.  Live debt free.  But the rest of it
> is where you run into a problem.  There are mostly two kinds of
> areas right now...those that are over priced, and those with
> little demand.  The thing of it is that there are potential deals
> in both kinds of locations.  The only thing is that you have to
> go do your groundwork to find those deals.  No one who knows about
> a deal is going to tell you because they want to do that deal
> themselves and make the money themselves.  It is like asking
> where the good fishing holes are--no real fisherman will tell you
> where his best spot is, at least not for free.

There's plenty of room in my market. I shared with Karl via e-mail. I
don't wish to announce on the internet, but I don't mind sharing with
an individual, especially when that individual may be able to help me
at some point.
I don't have the cash to take every deal that comes by me, but I am
always willing to refer a deal for a small fee, or to take on investors
in a deal when I am strapped for cash.
My area happens to be moderately priced, growing rapidly, in an urban
area with closely surrounding suburbs and even open land, and rents at
2.5 times mortgage.
The big markets like L.A., Chicago and N.Y. are just too scary. The
rents are lower than the mortgage payment. Unless you own outright, the
only hope is that the market keeps going up. What if it doesn't? I like
living in a market where the houses appreciate at only 4 to 6% per year
(I only put 20% down, so that's actually 25% return), but I can still
make $100 to $200 or more per door month after month.