Of all the new RE investment startups I like HomeUnion’s model the best. You own the whole house, not a slice of some illiquid fund. The value add they provide is to easily search and buy properties in many markets, and their property management crew. So you can spread your bets far and beyond the Bay Area market.
If I remember correct, Florida/Tampa has highest cap rate at 15% level. I do not invest outside of bay area. Nowadays, I prefer liquid REITs, than direct RE, as I can invest or start with small amount each REITs. They provide better returns, but there is no leverage of low rate mortgage.
That’s the beauty of buying a house directly. Also the 27.5 years of depreciation makes sure you are not paying any tax on rental income for practically rest of your life.
I have said it many times. People tend to over-estimate their own investment capability. With a liquid investment the tendency to over trade can be very hard to resist. Everybody talks about buying low and selling high. In real life only saints can resist selling at the depth of pessimism. With real estate, because it’s illiquid, and you have to jump thru so many hoops to sell, it acts as a brake to emotions. So at least for me, illiquidity is actually a feature not a bug.
Cost of appliances are about the same everywhere, and any repairs and asset replacement are large percentage of the price of the house. And given the adverse weather conditions there, it is critical to control repairs and frequent asset replacement. How do landlords achieve such control?
Yep, one reason I haven’t invested in sub 100K houses without high margins. Today those generate 2-3% more than say 250K+. Also another reason I just want to go straight to multi-family.
ad cash flow is based on 20% down Payment? What mortgage rate?