Rental Investment suggestion pls

[DesiPokiri]

5 minutes ago, neekunuvvetopu said:

Bhayya.. 400K home ayina.. you will only put 20K or less if you are a first time home buyer.  for 15 lakhs.. not much can be done in india with what I understand.  What are you expecting someone to put down here?  I have a friend who has 4 properties and currently gets about 10K in total.  He says all his expenses including hoa, taxes, insurance, mortgage is around 70-75K ie 25-30K profit which is good.  He started getting them from 2015/16 - i don't think he bought any recently with high interest rates or high home prices

Emo bayya from what I understand, if you buy 2 to 3 homes here you will keep paying those emi forever as long as you work here. So there is a blockage of your future investments. Example, buy a land in india for like 40 lakhs and forget for 8 months , it will go up to 75 to 80. Happened to me.  Where can we get ROI of 40 lakhs in one year without doing anything.

assume that max properties you can own in usa by the end of your retirement is 3 homes, 3 times 400k which is 1.2 million assume that might get appreciate  to 1.8 million or 2 million max, would that be enough for your retirement ? 

[Kurrodu1]

59 minutes ago, Sonu_Patel said:

400k home ki entha rent oste saripotadi...

1% rule prakaram, 4k rent ravali.

[ttr2tr]

35 minutes ago, neekunuvvetopu said:

Bhayya.. 400K home ayina.. you will only put 20K or less if you are a first time home buyer.  for 15 lakhs.. not much can be done in india with what I understand.  What are you expecting someone to put down here?  I have a friend who has 4 properties and currently gets about 10K in total.  He says all his expenses including hoa, taxes, insurance, mortgage is around 70-75K ie 25-30K profit which is good.  He started getting them from 2015/16 - i don't think he bought any recently with high interest rates or high home prices

is it legal in H1 status

anni rental properties ante active income aithadi kada

[phatposts]

At a very high level - $4000 in rent every month ravali. 

Depending in your down payment, capex should be 7.5% or better. 

Aaa rendoo leka pothe nenaithe touch cheyyanu. 

I look for positive cashflow in the first year if not immediately. Future growth prospects ni matrane base chesukuni rental investment cheyyaddu. Rent should cover your entire mortgage and leave you with some buffer. 

Pedda repairs vachinapudu that buffer should help you. Leka pote kashtapadatav.

Rental investment is not mailbox money. You have to do some work to make money. 

Ivanni naa valla kaadu ante REIT, Syndications ila choosuko

 

[Kurrodu1]

29 minutes ago, ttr2tr said:

is it legal in H1 status

anni rental properties ante active income aithadi kada

legal.

Its not active income. passive income, like stocks.

[JackSeal]

1 hour ago, neekunuvvetopu said:

Bhayya.. 400K home ayina.. you will only put 20K or less if you are a first time home buyer.  for 15 lakhs.. not much can be done in india with what I understand.  What are you expecting someone to put down here?  I have a friend who has 4 properties and currently gets about 10K in total.  He says all his expenses including hoa, taxes, insurance, mortgage is around 70-75K ie 25-30K profit which is good.  He started getting them from 2015/16 - i don't think he bought any recently with high interest rates or high home prices

For rental property you need to down 20% i.e. $80k… no lender will give you loan without 20% down for investment properties. In addition to to property tax you need to pay income tax on the rental income, painting the house once in a while, appliance replacement, commission for property manager, and considering the time property will be vacant you get minimal returns.

Only return you get is if your property value appreciates much. If you hold for longer as your house gets older your house value starts depreciating.

[Thokkalee]

In US, House prices (for old homes) usually don't rise much.. past 2-3 years is a big exception... 

Positive cash flow is very important for buying rental homes... in the current market, the home prices are so high that you won't be able to make any money out of rental homes (after putting 20% down)... if you have to pay 200-500$ every month on a rental property mortgage, you will end up losing lot of money... you also have to factor in any repairs as well.. 

[ttr2tr]

46 minutes ago, Kurrodu1 said:

legal.

Its not active income. passive income, like stocks.

mutli family apatments lo untu vere apartments rent ki iste adi passive income aitadi, but nuvu residence lekunda unte adi active income kindaki vastadi kada, itla aite enni properties unna kuda passive income kindaki petochu.

[Ustaad]

2 hours ago, phatposts said:

At a very high level - $4000 in rent every month ravali. 

Depending in your down payment, capex should be 7.5% or better. 

Aaa rendoo leka pothe nenaithe touch cheyyanu. 

I look for positive cashflow in the first year if not immediately. Future growth prospects ni matrane base chesukuni rental investment cheyyaddu. Rent should cover your entire mortgage and leave you with some buffer. 

Pedda repairs vachinapudu that buffer should help you. Leka pote kashtapadatav.

Rental investment is not mailbox money. You have to do some work to make money. 

Ivanni naa valla kaadu ante REIT, Syndications ila choosuko

 

All of this is true.

In our case, we got lucky. We bought a house to live in a LCOL area right at beginning of pandemic

$310k - getting $2200 rent.

We moved to a HCOL area now but we are very sure we can never afford a house here. So, planning to go back to that LCOL area in future but luckily that $300k house is worth $550k now.

Just renting it out now

[Kurrodu1]

53 minutes ago, ttr2tr said:

mutli family apatments lo untu vere apartments rent ki iste adi passive income aitadi, but nuvu residence lekunda unte adi active income kindaki vastadi kada, itla aite enni properties unna kuda passive income kindaki petochu.

yes add 100 doors to your portfolio, you can get 100k/month passive income. you just have to pay taxes on overall income. 

[rmJU72]

2 hours ago, Ustaad said:

All of this is true.

In our case, we got lucky. We bought a house to live in a LCOL area right at beginning of pandemic

$310k - getting $2200 rent.

We moved to a HCOL area now but we are very sure we can never afford a house here. So, planning to go back to that LCOL area in future but luckily that $300k house is worth $550k now.

Just renting it out now

Hi, do you mind sharing the city and zip

code?

[Pandubabu]

On 4/13/2022 at 2:05 PM, Sonu_Patel said:

400k home ki entha rent oste saripotadi...

Sonu patel. Rental investing is not for everyone.  And it is definitely not passive . If you want to be in lifelong  loop of buying house,  paying emi , looking at your networth and feeling proud that you have lot of homes ,may be it is for you. 

I assume you are atleast 30. In this pandemic and ,   People are dappa katting  by 60. Do you want to take 15/30 mortgage , and have that loan burden on top of your head till you die. 

Also.  Real estate is very region specific.  So you need to be careful there . And nee daridram 10gi , if the tenant is ass hole , you may not be able to evict him and you may loose months to year of money. 

Assuming,  you are not GC holder, recession 10gi , india vellalsi unte , recession valla house market pothe. Sanka naaki pothav.

I personally invest the money I am willing to loose in total market index funds and forget about it . Rebalance once in few years .

If you are not knowledgeable on market , buy freaking TDFs , they will take care of reblancing. Adhi kooda kastam aithe , call vanguard / fidelity/schwab and they will charge may be to max of  .5% of assets and they will take care of everything. 

 

 

 

[Picheshwar]

On 4/13/2022 at 11:22 AM, bramhacharimogudu said:

Talliki kudu pettanivaadu , pinatalliki chira pettadanta

wife adigite sontha illu konaledu kaani

 

Mod alert anna

[k2s]

On 4/13/2022 at 11:05 AM, Sonu_Patel said:

400k home ki entha rent oste saripotadi...

0.7% to 0.9% varaku vache laga untey ne buy investment property - which should atleast cover Principal and Interest of EMI. 

1%-1.25% vasthey inka better.. but recent home prices ki we cannot expect that much rent. 

Ex: for $400k = 0.7% is $2800 rent , 0.9% ki $3600 rent. 

[rmJU72]

1 hour ago, Pandubabu said:

Sonu patel. Rental investing is not for everyone.  And it is definitely not passive . If you want to be in lifelong  loop of buying house,  paying emi , looking at your networth and feeling proud that you have lot of homes ,may be it is for you. 

I assume you are atleast 30. In this pandemic and ,   People are dappa katting  by 60. Do you want to take 15/30 mortgage , and have that loan burden on top of your head till you die. 

Also.  Real estate is very region specific.  So you need to be careful there . And nee daridram 10gi , if the tenant is ass hole , you may not be able to evict him and you may loose months to year of money. 

Assuming,  you are not GC holder, recession 10gi , india vellalsi unte , recession valla house market pothe. Sanka naaki pothav.

I personally invest the money I am willing to loose in total market index funds and forget about it . Rebalance once in few years .

If you are not knowledgeable on market , buy freaking TDFs , they will take care of reblancing. Adhi kooda kastam aithe , call vanguard / fidelity/schwab and they will charge may be to max of  .5% of assets and they will take care of everything. 

 

 

 

It isn’t so bad for everyone like you picture it. You only hear the worst stories as no one posts the normal ones. Every investment has a risk, but doesn’t mean you don’t try it at all.

Just make sure u can handle the EMI payments if no renter for a few months.

Imo always go for investment properties below 350k max…that way u likely can still afford the emi if no tenant for a few months (abt 1800-2k per month)