US Property ( including struggle streets) are booming

Discussion in 'Property Market Economics' started by JDP1, 3rd Jul, 2017.

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  1. is_don_is_good

    is_don_is_good Well-Known Member

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    How are the quality of tenants?
     
    is_don_is_good, 15th Sep, 2017
    #41
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  2. Dean Collins

    Dean Collins Well-Known Member

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    Dean Collins, 15th Sep, 2017
    #42
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  3. PropertyInsight

    PropertyInsight Well-Known Member

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    Thanks Dean!
     
    PropertyInsight, 15th Sep, 2017
    #43
  4. MTR

    MTR Well-Known Member

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    First 12 months was fun and games:eek:

    3 properties have had same tenants since 2011, this massively improves cashflow

    I have had a few duds. The key is screening and training property managers the no BS approach
     
    MTR, 15th Sep, 2017
    #44
  5. CK_Invest

    CK_Invest Well-Known Member

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    whats the strategy ? (back then in 2011; and now)
     
    CK_Invest, 15th Sep, 2017
    #45
  6. CK_Invest

    CK_Invest Well-Known Member

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    sold in jan 2013 $335k
    then sold again on aug 2013 at $675k by the same agent

    whats going on there? sale to a family memebr in jan 2013? why would it fluctuate by so much?
     
    CK_Invest, 15th Sep, 2017
    #46
  7. MTR

    MTR Well-Known Member

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    I would say a flip, wholesaler makes a killing
    See this a lot with properties sold in US, double closing.
     
    Last edited: 16th Sep, 2017
    MTR, 16th Sep, 2017
    #47
  8. MTR

    MTR Well-Known Member

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    2011 - buy and hold, properties returning 20%+

    Today, flip, buy commercial properties, develop property
    Difficult today to find true cash flowing properties due to the recovery/boom
     
    MTR, 16th Sep, 2017
    #48
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  9. CK_Invest

    CK_Invest Well-Known Member

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    whats the gross yield like for commercial (atlanta i guess?), i guess commerical in usa is not much different to australia in terms of outgoings right?
     
    CK_Invest, 18th Sep, 2017
    #49
  10. MTR

    MTR Well-Known Member

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    I think Australian commercial yields are lower from what I have looked at

    Net yields for CIP in Atlanta around 8-10%, it really depends on what it is.
    We just purchased at 27% net CIP, but this is rare.

    We aim for minimum of 10% net yield
     
    Last edited: 18th Sep, 2017
    MTR, 18th Sep, 2017
    #50
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  11. Beano

    Beano Well-Known Member

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    I read this quote last week at the NYC financial museum in Wall St.
    It was by Benjamin Graham the man that taught Warren Buffett.
    He only gave out one A+ in his lifetime ...to Warren Buffett....
    Ps he intended to give MTR a A+ too but she was too busy buying properties and had no time to pick up the award. lol :)
     

    Attached Files:

    Last edited: 18th Sep, 2017
    Beano, 18th Sep, 2017
    #51
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  12. Dean Collins

    Dean Collins Well-Known Member

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    It was an estate sale in 2012 so I'd say the 2012 buyer "Rdby homes" did the renovations and although $300k increase seems a lot.....probably only $100k after costs.


    2012 transaction
    Buyer(s)
    Rdby Homes 26 LLC
    211-12 Union Turnpike, 2nd Fl
    Oakland Gardens NY 11364
    Seller(s)

    Leila Rudder, As Administratix
    C/O John J. Orlando, Esq.
    8118 13th Avenue
    Brooklyn NY 11228
    (Estate Of MacK Hicks Aka MacK Thomas Hicks
    C/O John J. Orlando, Esq.
    8118 13th Avenue
    Brooklyn NY 11228)




    2013 Transaction
    Buyer(s)
    McCall, Belkis Vasquez
    522 Lefferts Avenue
    Apt #5H
    Brooklyn NY 11225
    Seller(s)
    Rdby Homes 26 LLC
    565 Old Country Road
    Westbury NY 11590
     
    Last edited: 20th Sep, 2017
    Dean Collins, 20th Sep, 2017
    #52
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  13. CK_Invest

    CK_Invest Well-Known Member

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    hi dean, can u share the website where you can search up such info?
     
    CK_Invest, 25th Sep, 2017
    #53
  14. MTR

    MTR Well-Known Member

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    The beauty with buying US property is if you understand how to use the tools there is so much information available than what is accessible in Australia.

    You can even find out how many sex offenders in the neighbourhood:mad:
     
    MTR, 25th Sep, 2017
    #54
  15. CK_Invest

    CK_Invest Well-Known Member

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    any tools you can share? :)
     
    CK_Invest, 27th Sep, 2017
    #55
  16. MTR

    MTR Well-Known Member

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    By tools I mean Zillow, Redfin and being able to interpret the data which wont take to long, just keep working at it.

    Another way to learn is by joining biggerpockets forum, its a maze but you will learn their language pretty quickly.
     
    Last edited: 27th Sep, 2017
    MTR, 27th Sep, 2017
    #56
  17. sumterrence

    sumterrence Well-Known Member

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    Can I ask what is the expected yearly fixed expense looks like in the US?

    Last time I was in San Fran and I was told that in the US there is this property tax that you have to pay as property owner and it is somewhere close to 20k USD a year?

    I'm keen to understand what's the net rental return is like?
     
    sumterrence, 2nd Oct, 2017
    #57
  18. MTR

    MTR Well-Known Member

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    No idea what 20K is for??

    I pay county taxes (State) which was around $800 pa, now approximately $2000 per property pa. The value of the property is set by the county. The dramatic increase is because property values have more than tripled.
    County taxes are similar to taxes we pay in Australia to Shire for rates/water

    I also pay Federal tax (IRS) end of each financial year on rental income as I do in Australia to ATO. Tax paid in USA is credited back to my Australian tax

    My gross returns are between 20-25%, net returns can vary dependent on repairs etc. but on average around 12% pa

    When buying in USA -

    No stamp duty
    Tax brackets much lower than Australia
    No CGT (conditions apply) or capped at 15%

    Tax will also vary dependent on State.

    The Tax Foundation found that homeowners in these states paid the most in property taxes:

    1. New Jersey - 2.38 percent
    2. Illinois - 2.32 percent
    3. New Hampshire - 2.15 percent
    4. Connecticut - 1.98 percent
    5. Wisconsin - 1.96 percent
    6. Texas - 1.90 percent
    7. Nebraska - 1.84 percent
    8. Michigan - 1.78 percent
    9. Vermont - 1.71 percent
    10. Rhode Island - 1.67 percent


    MTR:)
     
    Last edited: 2nd Oct, 2017
    MTR, 2nd Oct, 2017
    #58
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  19. Chabs

    Chabs Well-Known Member

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    @MTR what states (other than Georgia and Massachusetts) would you say are most worth looking at?
     
    Chabs, 2nd Oct, 2017
    #59
  20. MTR

    MTR Well-Known Member

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    Its dependent on your strategy and price point

    I believe you will see continued growth in majority of marjets in US

    If looking lower end

    Texas, Austin, San Antonio
    Florida, Jacksonville
    South Carolina
    Indiana, pockets starting to soar
     
    MTR, 3rd Oct, 2017
    #60
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