Newbie Here... any advice?

**jmeadrealestate** · 06-05-2008, 12:11 PM

Hi... I'm J Mead, a complete newbie to real estate.

I bought the book, "Real Estate Investing For Dummies" and it's great. I finished it in three days.

I was thinking of buying a house. (duh?) It is a great deal, and I'll buy it in whole so I don't need to worry about the payments. Do you think that's a good move?

The asking is $150,000. I'll buy for $140,000 and put it on the market for $160,000. While it's on the market, I'll be renting it out.

Any great quotes, advice, or welcomes are welcome!

I look forward to meeting as many of you as possible.

Have a great day! -J Mead

**jvcus17** · 06-06-2008, 04:18 AM

hi its nice to meet you enjoy your stay here..im so sorry I cant help you about your concern but someone will help you eventually..

**portland real estate** · 06-07-2008, 01:05 PM

It's pretty much impossible to provide any detailed feedback about the quality of an investment deal without knowing the local market. However, there are some general stats that investors use.

For example, one benchmark is the cash on cash return, which equals the annual pre-tax cash flow / total cash invested. So you need to know how much it will rent for to start evaluating what kind of return you are getting.

**gjtrafl** · 06-08-2008, 08:34 AM

Keep in mind that you will be your own worst selling enemy. The first thing a buyer will do is see how much you paid for it. If you paid 140 and can't justify why you deserve 160, it will be hard to strike a deal.

**RobM** · 06-08-2008, 11:53 AM

I'm gonna guess here and say that the renter that you put into the house is probably not gonna like it too much that it is for sale

**Mijas Real Estate** · 06-11-2008, 11:44 AM

Hi J Mead,
Welcome to the Real Estate Forum, i would say that you would need to do some homework on whether the price that you hope to buy it for is really a bargain compared to comparable properties in that area.
Take into account the state of the property, maybe a survey would be advisable if you are not a property expert as this can flag up any problems now or later on once it's too late.
The other thing to consider is the costs involved with the purchase and then the costs involved when you resell it !....is there profit after this ? bear in mind any tax liability you may have when selling for a profit.
You will also need to find a reliable tenant that will be reliable with the rent payments and not wreck your property and also is prepared to show prospective buyers around.
You will have to make up contract with this detailed down, if that is possible in that area.
Good luck out there

**jron** · 06-11-2008, 07:49 PM

Welcome to the wonderful world of Forums J-Mead! I am pretty sure you'll enjoy your stay here. Well for your plan to buy a house in while I can say it is a good idea. If you can sell it for 160k it'll be a good deal as well. Right now it is a good time to buy because the market is flopping like crazy. But if you can invest now you'll see the fruits of your labor soon when the market will be on a good phase once more. Cheers mate!